With the beginning of a new school year, it's easy for parents to feel a sense of financial dread. Today's youth need more sophisticated supplies than their parents, which can pull tightly on a family's finances. CCCS Atlanta wants to show area families how they can get all of their child's needed supplies and still have money left for other expenses.
"The demands of your children's academic programs may require personal computers, calculators, and expensive lab fees," said Suzanne Boas, president of Consumer Credit Counseling Service of Greater Atlanta. "Without careful planning, families may be forced to choose between their child's educational needs and household bills. Back-to-school sales, thrift stores, and recycling last year's clothing and supplies are all supplements to the most important step a family can take: budgeting."
CCCS offers free confidential budget counseling, including an analysis of a family's financial situation and a forum to ask questions and resolve debt issues. A certified credit counselor can discuss income, debt, assets, and liabilities and help the family develop a plan to manage finances.
For back-to-school, families should consider the following cost-saving tips:
Take inventory. Begin with a list of all back-to-school needs and expenses including supplies, equipment, clothing, and fees for sports, music, and science labs. Next, check around the house for what the family already owns. Last year's book bag and supplies may be just what is needed to start the new school year. Most students will not need entirely new wardrobes. Clothes, shoes, and coats are recyclable and can look like new outfits with inexpensive accessories.
Buy demos and display products. For big-ticket items like computers, accessories, and other equipment, a store's display merchandise with small cosmetic blemishes offer great consumer savings and often come with warranties. According to The New York Times, almost $80 billion of excess or returned inventory piles up each year. American retailers and manufacturers realize they can recoup some of their costs by selling these products at a discount to consumers. Simply inquire to a store manager about the availability of these items for purchase.
Invest in smart plastics. Instead of paying for cell phone plans, consider phone cards. Also, consider pre-paid credit cards that allow an increase in credit limits as often as needed. Instead of paying for a car and insurance for college students far from home, it may be smart to establish a frequent flyer membership so they can earn points for traveling home.
Eat wisely on campus. Generally, it is both cheaper and healthier to pack a lunch than to eat at school food counters and off-campus fast-food restaurants. Deli wraps, cold cuts, cheese and veggie snack trays, and salads with grilled meat are easy to make and will keep in lockers or cars for a few hours.
Comparison shop. Sunday circulars and direct-mail coupons provide great updates on sales of trusted, name-brand items. Pay particular attention to sales expiration dates. If an item is not already on the shopping list of necessities, don't buy it, even if it is a great deal.
Shop online. Several national office supply stores are offering good online prices for school supplies. Look for free or inexpensive delivery.
Pay with cash, if possible. Set a spending amount and stick with it. Pay with cash when possible and leave the checkbook and credit cards at home to avoid temptations for unplanned and unnecessary purchases. If short on cash, some stores still offer layaway plans for time needed to save up for purchases.
Use credit wisely. If using credit is absolutely necessary, then limit purchases to items that can be paid off in 90 days or less. Use a credit card with the lowest interest rate. Consumers should always remember that using a credit card is like taking out a short-term loan. If care is not taken to minimize charges and make payments on time, this loan could become a long-term financial and credit disaster.
Prepare for next year. Start budgeting now for next year. Set aside money that is designated for back-to-school shopping. This way, the family will not be overwhelmed by unexpected costs that could lead to a financial crisis.
About CCCS of Atlanta
Consumer Credit Counseling Service of Atlanta is a nonprofit, community service agency dedicated to empowering people to achieve a lifetime of economic freedom. CCCS Atlanta provides free, confidential budget counseling, community and personal money management education, debt management programs, and comprehensive housing counseling. Contact CCCS Atlanta by phone at 1-888-771-HOPE (4673), or visit the Web site.
