With back-to-school fast approaching, parents are expected to spend an average £300 to kit kids out for the new academic year. But according to the government’s Money Advice Service, a back-to-school shop can send parents into debt, with spending either being put onto credit cards or saving pots being emptied. The costs are particularly stressful after the summer holidays, when many families will have already spent hundreds of pounds entertaining the children over the last few weeks.
To help ease the financial pressure and to help you stay within a budget, here are our top tips to help families manage the back-to-school costs and put some money aside too!
Set up a back-to-school fund
We know it’s going to happen and when it’s going to happen, but few people actually put money aside to pay for back-to-school costs. Putting aside a small amount each month could really ease the financial pressure.
Put the money into an easy access savings account, but make sure you shop around for the best interest rate. Don’t forget to switch accounts when a bonus interest rate expires – they usually last for the first year of opening the account.
Set a budget
It’s easy to get carried away with back-to-school shopping and let’s face it, the kids will not stop asking. Make a list of everything you need and give yourself a realistic budget. Stick to buying the essentials to avoid overspending. Only buy non-essentials if your budget allows it.
Make use of cashback and money-saving apps
Making extra savings on groceries and other essentials can really help with your budget. Buy as much as you can online to take advantage of cashback, such as Topcashback or Quidco, which gives you a percentage of your money back.
For example, if you buy something on M&S via Topcashback, you could currently get just over 3% back on your purchase price. If you use cashback regularly for all of your everyday purchases, you could save hundreds of pounds every year – an amount you could then put towards paying for back-to-school costs.
Money saving apps, such as Checkoutsmart and Shopmium for example, can also help with grocery costs, which can really eat into household budgets. You can bag money-off groceries as well as free stuff. See more of our money saving apps here.
Refurbished technology
Technology is probably one of the most expensive items parents end up buying for their children, but whether it’s mobiles, tablets or laptops, you can significantly cut the cost by buying refurbished gadgets. Often these gadgets are just opened returns with broken seals; if that doesn’t bother you then you could slash your technology costs by hundreds of pounds.
Buy second-hand
School uniforms don’t always have to be new. Schools often have second-hand rails and sell items for as little as a £1. If the school doesn’t have a second-hand uniform rail, then why not set up a Facebook group for your school to allow parents to buy, sell, and even swap school-related items?
Plan for the future
Last but not least, with all the excitement of school, it’s easy to forget saving for your children’s future for when they leave school. If they choose to go to university after school, the costs can be considerable (find out about student life here).
An investment junior ISA is a great way to help build a fund for their future if you can save for a period of at least five years, and ideally 10 years minimum. If your child is still relatively young, under age 13, then an investment ISA would give them the opportunity to maximise the return potential on the stock market. But remember, investments can go up as well as down.
If you put money into a cash junior ISA, always shop around for the best interest rate.
Once you put money into a junior ISA, the money then belongs to the child and only they can access it when they are 18.
Photo by Angelina Litvin on Unsplash
