Back-to-School, Back to Budget: Resetting Your Family’s Finances

Author: Hillary Stalker, CFP®

As summer winds down and a new school year is on the horizon, shopping for back-to-school essentials is high on the priority list. But your budget deserves just as much attention. The school year often brings expenses you didn’t face during the summer, from after-school activities and school lunches to field trips and extracurricular fees. By planning ahead and making room for these costs in your budget, you’ll set yourself and your family up for success all school year long.

Revisit Your “School Year” Budget

Back-to-school expenses rarely stop at notebooks and pencils. A realistic school-year budget should also account for things like school lunches, extracurriculars like sports and clubs, tutoring, field trips/school events, transportation, technology, and more. Planning for these costs ahead of time means you won’t be caught off guard down the road, and setting aside money into a dedicated “school-year fund” can make those bigger expenses much easier to handle when the time comes. 

Re-evaluate Everyday Spending

As the school year kicks off and schedules become more hectic, this is a good time to take another look at your family’s spending habits. With evenings filled with practices, games and rehearsals, the added costs of carpooling, new gear, and on-the-go dinners can quickly add up. Reviewing your everyday spending is a smart way to see where you can cut back or simplify costs where necessary to make room for these expenses. Even small adjustments like automating bills or reducing impulse purchases can free up cash for other important needs.

Plan Ahead for Seasonal Surprises

Some school-related costs don’t make it into the original budget but can still sneak up throughout the year. Holiday gifts for teachers, spirit wear during homecoming, or bigger events like prom and graduation in the spring can all add up. These expenses might not apply every year, but setting aside some seasonal-specific savings at the start of the school year can help ensure you’re prepared if (and when) they come around.

Stay Committed to Your Financial Future

While it is crucial to take into account the extra spending that comes with the school year, it is also necessary to keep your long-term financial goals in mind. You should continue to contribute towards your savings goals, emergency fund, retirement and even college/day care funds if they’re a possibility in the future. This process is also a great opportunity to involve your children in the conversation by teaching them good savings habits and helping them understand the value of their extracurricular activities and the costs associated with them, so as to set them up for their own financial success in the future. 

So, as we say goodbye to summer and hello to another school year, now is the time to consider your budget. A quick review now can help you anticipate upcoming costs and head into the year financially prepared. By making adjustments early, you’ll avoid surprises and stay in control of your spending for a successful school year.