Smart back-to-school shopping & budgeting education for kids

With the school year fast approaching, parents nationwide are feeling the pinch. According to the National Retail Federation (NRF), nationwide back-to-school spending is projected to hit a record $43.3 billion.

Whether you’re shopping for one child or several, those costs add up fast. The NRF survey shows that families with elementary through high school students expect to spend an average of nearly $864 this year, while college-bound students and their families face costs over $1,000.

With prices rising, experts agree that having a solid plan is just as important as snagging a good deal. Here is how you can manage the costs without breaking the bank.

1. Know Your Numbers Before You Go

Before heading to the store or adding items to your online cart, take a step back to review your family's finances.

Jason Haswell, Managing Director at The Monteverde Group, recommends sitting down to compare your monthly income against your regular expenses. This helps you figure out exactly how much discretionary income you can realistically allocate toward school supplies and clothes without relying on high-interest credit cards.

2. Time Your Purchases Wisely

Many families start shopping early—over 65% of parents begin their back-to-school shopping as early as July to spread out expenses. DFW financial expert & CPA Bill Dendy says rushing to buy everything at once isn't always necessary.

• Wait for Later Sales: Retailers often discount items further into the season.
• Watch Out for Selection: While waiting can save money on generic items, delaying too long might mean popular items (like specific designer clothing or popular electronics) sell out.
• Spread Out the Buys: Kids keep growing! Instead of buying a full year's worth of clothes in August, purchase a few key outfits now and buy the rest as the season progresses.

3. Separate "Needs" from "Wants"

Dendy says it’s easy for school supply lists to swell with trendy gadgets and high-end apparel. To stay within budget:

• Take inventory at home first—you may already have notebooks, backpacks, or supplies from last year that can be reused.
• Focus on essential items required for the first few weeks of school, and hold off on non-essential purchases until later.

4. Turn Shopping into a Financial Teaching Moment

Involving your kids in the back-to-school budgeting process is one of the best ways to build early financial literacy according to Dendy.

Giving children a set budget for their clothes or supplies forces them to make real choices: Do they want four standard outfits, or only two brand-name items? Teaching kids how to manage finite money early—around ages 9 to 12—helps build lifetime habits for handling debt and spending responsibly.

5. Build a "Sinking Fund" for Next Year

Back-to-school expenses happen every single year, yet they often catch family budgets off guard.

To avoid the stress next season, Dendy says consider setting up a sinking fund—a small amount saved monthly specifically for school expenses. Setting aside money throughout the year keeps you from accumulating credit card debt during peak shopping months.

Pro Tip: If you're struggling to break out of a cycle of high-interest debt, consider consulting a Certified Financial Planner (CFP) or CPA to help evaluate your family's overall budget and map out a path to financial freedom.