Summer has come and gone, and the back-to-school posters are everywhere we look! Whether you’re sending kids off to college for the first time or maybe your children are walking down the halls of middle school, preparing your finances is a suggestion we make to all our clients. You never know what unexpected expenses might hit during this time of year and it’s better to be prepared when it comes to your kids’ education.
Here are several suggestions on how to financially prep for back-to-school season:
- Create a sinking fund for back-to-school
A sinking fund is a pool of money you continually add to that you can access for larger purchases at certain points throughout the year. These purchases aren’t regular purchases, so you wouldn’t put them into your budget, but they also aren’t purchases that should come out of an emergency fund because they are expected.
- Establish a spending limit
It’s easy to let back-to-school spending get out of hand. From dorm supplies to new notebooks and shoes, costs can add up quickly. Assess your budget and establish a spending limit so you don’t spend too much this season.
- Apply for scholarships
If you have a child going to college, don’t miss out on the opportunity to apply to scholarships and financial aid. There are plenty of options to get financial aid if you are in need.
- Set goals
With any big financial purchase, it’s important to set goals and keep coming back to them. Even with something like back-to-school, we encourage you to set goals as this will help you stay on track.
We encourage you to start taking steps today to prepare your finances so your children can be set up for success in the future.
