By Jasmin Brown - Licensed Insolvency Trustee

BDO First Call Debt Solutions

How to Keep Your Debt Load in Mind When You’re Back-to-School Shopping

Aug 27, 2019 | 5:03 PM

As any parent of school-aged children knows, the back-to-school season can be very expensive. Costs can add up quickly, and so can debt. In a new survey from RetailMeNot, an increasing number of parents admit that they are stressed about back-to-school shopping (48 per cent this year vs 40 per cent last year), perhaps because parents expect to spend an average of over $500 shopping for the school year ahead.

Whether you have children in elementary school, high school or post-secondary, how can you ensure they get the supplies they need without blowing your budget or adding a load of debt?

How to send your kids back to classes without adding to your debt

Even though the first day of school is just weeks away, there is still time to employ a few strategies to keep your costs down:

● Can you reuse any supplies from last year? Evaluate what you already have on hand that is still new or lightly used.

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● Buy only the supplies that your child needs to get his or her school year started. After-season sales will kick off after the new school year begins.

● The same is true for clothing. Limit your spending now, and continue to look for sale items over the next few months.

● Don’t pay full price if you don’t have to. Keep an eye out for online flash sales and in-store sales, and check your local consignment or second-hand stores.

And remember, budgeting and tracking what you spend will be the two most important tools to help you get your kids ready for school without accumulating additional debt.

Some advice for the 2020-21 school year

Paying for next year’s back-to-school expenses upfront, without relying on credit cards, is a great strategy for avoiding debt. Start by opening a savings account (or create a line item in your household budget) for school expenses. Now estimate what you will spend next year on supplies, clothing and the like. Do you think you will need $400? Contribute $40 each month to your savings fund beginning this September and you will have $400 when you begin your school shopping next July. Just in time to take advantage of beginning-of-season sales and deals in early July!

How to manage money and debt when your child is university bound

Back-to-school spending for a university or college student is an entirely different ball game. Your child will be dealing with tuition, textbooks and supplies, entertainment costs and living expenses. Altogether, it can stretch any family’s finances.

Do you or your child have a comprehensive plan for how post-secondary costs will be covered? If not, the government of Canada has excellent resources and tools on the Student Financial Assistance section of their website.

If you haven’t already discussed it, talk to your daughter or son about any financial contributions you’ll make to their education. If you are offering financial support, how much are you willing or able to give? If you haven’t already, it’s also a very good idea to discuss the importance of having a budget and keeping track of spending while they are in school.

Consider your own debt load

When you’re getting ready to send your kids back to school, it’s always important to keep your own debt in mind. Sometimes money-saving strategies aren’t enough. If you know that school expenses will overwhelm your budget and end up on your credit card balance for months, don’t hesitate to get help with your debt. There are many different debt relief options that can help you reduce your existing debt load and get your finances back on track.