“I think every American is feeling the prices that have just gone up,” said Rachel Cruze, a financial expert for Ramsey Solutions.
From gas prices to groceries and back-to-school supplies, costs have continued to break records.
“That’s why it’s more important than ever to budget,” said Cruze.
In the weeks leading up to the school year, many families stocked up on school supplies and went over lists to make sure their kids had everything they needed to go back to school.
That alone can put a dent in your bank account.
“The school year is about more than just pencils and books and even clothing. It’s also about experiences,” said Sara Rathner, personal finance expert for NerdWallet.
Now that the school year has started, paying for things like field trips and extracurricular activities can put an additional strain on your wallet.
“You definitely want to have money set aside for all of those activities that don’t come free,” said Rathner.
According to financial experts, knowing how much money you have and sticking to it can help you throughout the school year.
“The goal here is to live on less than you make. In order to do that, you have to have a plan with your money,” said Cruze.
Start by making budgets now for each month, at least through the Fall.
“They’re going to change month to month for sure, but you can at least kind of have a guideline of 'hey, here’s what’s going on with our money overall, and here’s where we’re going to have to say no, here’s where we can say yes,'” said Cruze.
Experts stress trying to avoid going into extra debt for school activities.
“Many parents are willing to even go into debt to fund extracurricular activities for their children,” said Rathner.
“I look at debt in general as a thief. I mean, it steals your income from you when you’re having to pay back these loans and sometimes with interest,” said Cruze.
For limited budgets, be selective and purposeful about which extracurricular activities you allow your child to participate in and prioritize where you can spend your money to stay within your set guidelines.
“Maybe you want to say yes to every field trip so your child doesn’t feel left out when their whole class is away but you might want to perhaps be a little bit stricter on how many extracurriculars you allow your child to sign up for. Especially ones that are very expensive that involve equipment, uniforms, and gear, and maybe even travel,” said Rathner.
While it can be hard to say no to your child when they’re really excited about something, experts believe it can also be a great time to teach them a lesson about making smart financial decisions.
“It is an important lesson to learn even at an early age that we say yes to some things, and we say no to some things,” said Rathner.
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