If one thing is sure this year, it’s that COVID-19 has changed the way we live and spend—and preparing your finances for back to school is no exception. As many schools shift from in-person to remote learning, the National Retail Federation expects parents with K-12 children will spend an average of $789 on school year expenses. A $92 uptick from last year.
And it makes sense. Families are spending less on traditional supplies like clothes, accessories, and backpacks. But according to the annual Deloitte Back-to-School Survey, they’re spending more on big-ticket items like computers, electronic gadgets, and digital subscriptions.
If you’re a parent preparing your finances for the school year, consider these ways to save money—whether your kids are heading back to school in person, virtually, or a little of each.
Create an at-home inventory
Odds are you already have some useful supplies around the house. Start by making a list of everything your student needs for a successful school year, including traditional supplies, new supplies for e-learning, and health supplies like masks and sanitizer.
Once you have your supply list, do a sweep of your cabinets and closets. If you find anything that can be used or repurposed, mark it off your shopping list. Even unsuspecting items can come in handy. For example, you can turn old T-shirts into cloth face coverings with the help of online tutorials.
Establish your school year budget
Price out each item on your list based on standard retail (not sale prices). Overestimating provides a buffer for unexpected expenses that come up later in the school year. As you work your way through your shopping list, keep a running total of what you spend and subtract it from your total budget.
While you’re preparing your finances for this school year, you can also establish a sinking fund for next year. Essentially, a sinking fund is an easy way to save for future expenses. Set up a dedicated savings account with your bank, establish a monthly budget, and put that amount into your account every month. For example, if you want to save $900 for next year’s school expenses, you’d put $75 a month into your sinking fund this school year.
Take advantage of credit card rewards
Many credit cards offer points for every dollar you spend. But not all credit cards come with the same rewards. With a DEXSTA Visa Platinum card, for example, you get access to unique credit union member benefits. In addition to having no balance transfer fees, no over-limit fees, zero annual fees, and no cash advance fees, the DEXSTA Visa Platinum Rewards card offers points-to-cash and merchandise rewards that you can use to buy supplies for the school year.
Before you start shopping, contact us to determine if a DEXSTA credit union Visa can help you earn rewards on back to school spending. We also offer Express loans for all your virtual and in-person back to school needs.