7 tips to help kids learn to budget money during back-to-school spending

July 29, 2020

American families spend close to $600 a year in gearing up the kids for school, according to the National Retail Foundation. Yet by getting the kids themselves more involved, many of us could not only reduce the cost but also help our children learn a life lesson (as adults, they’ll need to know how to stretch a dollar when money is tight). To get the most from the strategy below, it’s best to start early—in early August, if you can.

1. Coach your kids on the concept of budgeting. You might take a couple of dollar bills out of your wallet and explain that spending too much now means there may not be enough later for something else they want (say, summer camp or a winter trip to the tournaments)—a concept a schoolchild of any age can grasp.

2. Set a budget that encourages them to plan. Some parents pay for all fees and academic supplies, then provide each child $100 for other back-to-school needs. The kids are free to stretch the $100 using money they’ve earned or saved. If they’re alarmed about this budget, brainstorm with them about ways they can earn more. (See #5.)

3. Help them inventory school supplies left over from last year. Can they reuse backpacks, notebooks, sports equipment? If there’s peer pressure to have something “new,” how about personalizing those possessions with stickers or stencils?

4. Ask them to make a list of what they really need. You might gently remind them that school ended only a couple of months ago. Have their needs really changed since then? If a new outfit is essential for the first day of school, can they mix in clothes from their closet later on?

5. Hold a yard sale of outgrown or unneeded stuff to raise money. If you bill it as a “Back-to-School Sale,” bargain shoppers will flock from all over to find good deals. While you’ll probably want to oversee the sale, encourage your kids to get involved in the pricing, set-up, and selling. They’ll value the profits more, having worked for them.

6. Avoid paying full retail. Start with Goodwill and other nearby charity and consignment shops. Teens who like to dress distinctively may find bargains at resale shops, outlet stores, and vintage clothing emporia. If you do need to buy “new,” peruse sale flyers and search for online coupons first. Above all, stick to your shopping list.

7. Consider sharing with the less fortunate. Many communities have an organization that provides back-to-school items to truly needy kids. If you come upon a great deal in school supplies, buy a little extra and donate it. You won’t save money, but you’ll gain rewards of another kind. Your children will, too.