Education has become increasingly expensive for parents, especially for those hoping to help their children stave off the burden of massive student debt. This may include having to contend with soaring inflation, spikes in cost of living expenses, increased job competition and steep interest rates. Statista reported that the average back-to-school spending per household, not including tuition and student housing (for college students), is nearly $900. With many families living paycheck-to-paycheck, this can pose a significant challenge.

Consider these six suggestions for saving and managing money as students head back to school:

1. Ensure You Budget Correctly

When you think of students going back to school and the expenses that will come into play, you may imagine exorbitant tuition and housing costs (for college students or those in private or boarding schools), meal plans, and books. But don’t forget to budget for the smaller necessities that can add up:

  • Clothing, shoes, and jackets (winter and summer gear, depending on where you live).
  • School supplies, such as a financial or scientific calculator, pens and pencils, folders, book bag, umbrella, etc.
  • Electronics, including laptops, and a specified cell phone plan.
  • A car and up-to-date insurance.

 

2. There is Nothing Wrong With Hand-Me-Downs

At any given time, there are people out there, and you might be one of them, experiencing financial struggles. Sometimes it just takes thinking outside the box to save money creatively. If you have multiple children, consider good-quality hand-me-downs. Alternatively, consider shopping in stores like Goodwill or the Salvation Army, which offer decent-quality second-hand products that might also be fashionable and trendy. Another option is to use a cheaper shopping option like Temu instead of purchasing goods from Amazon. This strategy may help save money, offering financially strapped families a financial cushion and some relief.

 

3. Encourage Your Kids to Bring Their Own Lunch Instead of Eating Out

Eating out is incredibly expensive and adds up quickly. Consider sitting down with your children to discuss what kind of homemade and healthy lunches they want to eat. A tuna or peanut butter and jelly sandwich and a piece of fruit may cost $1.50, whereas eating out at the deli could run you $10. Those expenses can drain your wallet. It may be healthier to bring your own lunch, too!

 

4. Seek Out Available Discounts

As the cost of living continues to rise, if you are willing to put in the effort, there are discounts if you can find them. A common characteristic of “savers” is their ability to find a good deal. Go through the newspaper or contact your local grocery store to see if deals or coupon books are available. Talk to friends and neighbors who might know about deals in your area. You can also spend less by taking one vacation a year instead of three, and adopting hobbies that don’t cost money, like going on walks, renting books from the public library, or dinner and a movie at home.

 

5. Encourage Your Child to Consider a Part-Time Job

If your child is of age, consider helping them find a part-time job. They can save a percentage of their earnings for future educational costs. Not only is it a good idea for monetary purposes, but it can also help kids learn about responsibility, how to interact with people professionally, and even help them begin investing by opening an investment account. Kids who know the value of investing will have their entire lives to allow compounding to work.

 

6. Consult Your Financial Professional

When it comes to personal finance and upcoming expenses, it is easy to become overwhelmed. This can lead to emotional decision-making that may negatively impact you and your family financially. Consider consulting a financial professional who can help you organize your finances and work to create a manageable strategy. Not only can it help to relieve you from financial stress, but a financial professional may be able to suggest tips for saving money in ways you didn’t consider.

 

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.

This article was prepared by LPL Marketing Solutions

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