Start Planning the Back-to-School Budget

Can you believe it?! It may seem like summer started yesterday, but - in reality - we are halfway through the season, and the next school year will be here before you know it! Which means, it is time to start thinking and planning the back-to-school budget.

Get a Back-to-School Budget

Now that back-to-school shopping is about to be headed your way, it is important to remember that while you need to establish a spot in your budget for school essentials, you cannot forget about the rest of your household responsibilities.

To ensure everything is covered, some choose the 50/20/30 budget rule. This translates to: 50 percent of your monthly income goes toward your needs, such as mortgage payment, utilities, groceries, etc; twenty percent of your monthly paycheck is set back for college savings, paying off debt, etc.; then, 30 percent is for the extracurricular activities, such as eating out, movies, and back-to-school shopping!

Once an amount has been set, gather the kids for a family meeting to discuss their needs for the upcoming school year. Write down on a piece of paper what everyone needs for the upcoming school year and, then, what everyone wants.

You should be seeing back-to-school ads appearing soon. Start making notes of where the deals are, and plan your shopping route accordingly, in order to make the most of the dollars you have reserved in your budget for school shopping. Also, do not forget about tax-free weekend to help with savings.

Do you still have a zero balance in your child’s college fund? Contact us today to learn how we can help you get started saving for your child’s education.