AICCCA Offers Back-to-School Lesson Plan for Money
Fairfax, VA - July 29, 2008 — Parents are preparing for the most challenging back-to-school season in years. They can give their children a financial primer if they use back-to-school shopping as a way to talk about money management.
"A plan is crucial to avoid overspending on back-to school items," said Dave Jones, president, Association of Independent Consumer Credit Counseling Agencies. "If parents use the opportunity to include their children in the planning, they can teach some basic money skills."
AICCCA recommends parents sit down with their children and ask the following questions before setting out to shop for back-to-school items:
How much are we going to spend? Enlist your children's help by having them check the back-to-school ads in the paper or online to learn what the prices are for things you will need to purchase. This will enable you to find out how much it is going to cost to go back to school and if the amount you have decided on is realistic to your family's budget.
Can we shop tax-free? With the down economy, parents will be looking for every way to save some extra money. More states than ever are offering tax-free holidays for back-to-school shopping. In 2008, 17 states offer a holiday, which is up from 15 states in 2007. Retailers will often run special sales during the holiday and if you add the tax savings, you may save a significant amount of money. The holiday is held over a long weekend or even a whole week, but rules and regulations do apply. Let the kids help by having them investigate online your state's guidelines before you go shopping.
What is required this year? Have each child make a list of everything they will need, including clothing, shoes, backpacks and school supplies. Don't forget athletic equipment or other extracurricular needs. Using your total amount to spend as the guide, assign a dollar value to each item for each child.
What do we already have? Break out last year's backpacks and find out what you have that is still useable. Rulers and scissors don't need to be replaced every year and you might even find highlighters, pens and pencils that are like new. Look for unopened packs of paper or unused folders that can be used this year. Mark off any item that can be reused from the shopping list.
Do you want it or do you need it? This is a chance for parents to talk to their children about needs versus wants. For instance, jeans and athletic shoes are two common items where brand names often cost much more than a store brand. If only a certain brand will do, look for other ways to cut back. For instance, buy two pairs of jeans instead of four pairs. You might also give your children the option of putting some of those items on their holiday wish lists to spread the spending out.
How can we shop smart? Many stores will offer a handy package of required school supplies, especially for younger children. Check to be sure that you do not pay extra for this convenience, especially if you are shopping for more than one child. Look for items on everyone's list and see if buying those items in larger quantities gives you a better price break. If having a "package" is important to your children, plan a day after you shop to package your own set of supplies.
How will we pay? Try to pay by cash, check or debit card when possible. If you must charge some items, try to have a plan that will enable you to pay the credit card bill in full when it arrives or at least within 90 days.
What about next year? Save your receipts and work with your children to devise a filing system that is easy to manage. Where you may have fallen short of your planned expense, make note of those items on your list. Next year when you repeat the exercise, you can work with your children to research those items in more detail and maybe find another, more affordable solution.
Founded in 1993, Association of Independent Consumer Credit Counseling Agencies (AICCCA) is a national membership organization, established to promote quality and consistent delivery of credit counseling services. AICCCA and its members are focused on improved creditor relations, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, counsel millions of consumers annually nationwide and provide debt management services to consumers with excessive unsecured debt. For more information or to contact an AICCCA member office call 866-703-TRUSTAICCCA (866-703-8787) or visit www.aiccca.org.
