Back-to-School Budgeting

Ah, back-to-school time: the smell of newly-sharpened pencils, fresh crayons, and flowing cash. If that third one's got you down, take a look at these tips for creating - and sticking to! - a back-to-school budget.

Start early, and take time to get ready.
It doesn't take much to turn the school's supply list into a full-on shopping list. But you can do better than that.

Before you buy even one notebook, estimate how much you can afford to spend overall and what the costs are likely to be. Don't leave anything out! It's better to know ahead of time if things will be tight. (Keep reading for a bunch of creative ways to handle a shortage.)

Give some thought to what you'll do with any extra money in the budget. Will the kids get something special from their mile-long wishlists? Or will the surplus be added back into the household budget?

Think ahead to find the best deals. Be on the look out for the big back-to-school sales and go early! Even the big stores can sell out at the last minute.

How realistic is your budget? Try our back-to-school calculator to find out!

Get the kids involved.
And not just with the shopping. Have them join in as you prepare: They'll learn great lessons about budgeting, finding a good deal, and the difference between wants and needs.

Younger children can help cut coupons (with safety scissors, natch). And older kids can compare costs and tally them up. You might even put them in charge of looking for deals to stay under budget.

Be willing to compromise on a few things.
Sure, kids will want to have the same cool stuff their friends do. If your budget has the room, you can help them learn to prioritize.

Talk to them about how choosing a more expensive item means they'll have to go cheap on another item, and give them a chance to think their choices through. If they have money of their own, you might ask them to help fund that special lunchbox or name-brand backpack.

Get creative to slash the shopping bill.
There's a good chance school clothes are the biggest chunk of your back-to-school budget. But who says they have to be brand new? Trade clothes with other families, or hit the thrift stores and garage sales. If school uniforms are required, check whether the school has a trading or discount program.

Buying online? Play it smart! Order together with enough friends to get free shipping. Or buy bulk packs of supplies to share. You might also find a steal on eBay or Craigslist.

Learn from the experience.
Make your savvy back-to-school approach an annual tradition. Keep track of this year's expenses to help figure out the budget next year. Keep notes about what you discover, like where the best thrift stores are and when the store shelves start to empty. They'll come in handy a year from now.

Practice these smart shopping habits each year, and by the time the kids graduate, you'll have saved a bundle. And they'll be much more prepared for the real world.