Back to School Shopping: Budgeting
08/07/2024
Back to School Shopping: Budgeting
Back to school shopping is an excellent time to work on important financial topics with your children! No matter what their age is, it is important to infuse smart money habits wherever you can, and mindful shopping is one of the best ways to do so.
Budgeting seems like a simple thing to learn, but it is one thing that many young adults on their own for the first time struggle with. The main benefit to budgeting is control. Having a budget allows you to allocate exactly how much will go where. This leads to being able to effectively manage money and enjoy financial autonomy.
We understand that it can be a very busy time, and not all families will be able to do the following exercise. The great thing is, you can do as many or as few steps as you want, and it will still be beneficial to your child.
- Pre-Shopping Budget
We recommend starting with a pre-shopping budget. Compile a list of all the necessary supplies, clothing, and extras needed for going back to school. Then, look for the average cost of these items, any sales that may be going on, as well as any coupons that may help keep costs down. You and your children can then work up a budget for what you can spend.
- Shopping Within the Budget
Depending on the age of your child and your own personal preference, you can either remain in control of the funds or give your child a pre-paid card with the budgeted amount. Either way, encourage them to keep a running tally of how much each item costs and check it against their budget. This helps them to be aware of how purchases can stack up and encourages informed decision making.
- Post-Shopping Debrief
After completing back to school shopping, it might be helpful to have a post-shopping conversation with your child about what they may have learned. If they are having some trouble communicating their ideas, you could ask questions about how they can use what they learned for their future financial responsibilities. Maybe you could have a conversation about ‘wants’ versus ‘needs’ in terms of financial spending. Or maybe you focus on the benefits of effective money management. The great thing is that this can be tailored to your family’s needs!
Budgeting is an essential skill and back to school shopping is a great opportunity to expose your child to it. For more financial literacy topics, visit our other posts on the SmartBanking Talk blog at TheSavingsBankOhio.Bank/blog. We hope everyone has a great school year!
Sources:
https://studentaid.gov/resources/prepare-for-college/students/budgeting