Budgeting: Practice Good Money Habits

Updated April 13, 2023

Every parent knows that back to school often feels like back to spending. From school supplies to soccer teams, new sneakers to new jackets, the hidden expenses that come with the change in season are real.

But before those star students strap on their brand new backpacks, parents can take a minute or two to explain a back-to-school budget with their children. Kids should be brought into the fall budget conversation to learn smart money choices.

3 Areas to Practice Back To School Budgeting:

1. School Supplies

Once essential school supplies are purchased, kids might be responsible for any fun ‘extras.’ If they are spending their own hard-earned allowance dollars on that glitter pencil case, soccer ball keychain or rainbow gel pens, there’s no doubt they will more carefully consider their spending choices.

2. Back-to-school shopping

Fresh air, sunshine and countless popsicles seem to make kids grow like weeds over the summer. Some families set a clothing and footwear budget to help kids try on some important budgeting skills.

By prioritizing necessity (a new coat!), cost-per-wear, durability and affordability, kids can practice making smart shopping choices from an early age.

3. Extracurriculars

From piano lessons and gymnastics to robotics and soccer, these days extracurriculars are big business. Families can set a budget for after-school activities for each child.

Kids can look at the costs associated with the activities they might want to participate in and prioritize accordingly. If kids are torn between two activities (for example, a BT Kindergartener was undecided between ballet and gymnastics), a cost comparison can help tip the scale.

Other ways to save at back to school time

low cost activities

While back to school can often break the bank, there are some smart ways for parents and kids to save. Many communities offer free or low-cost activities for children. From after-school crafts at the local library to tennis lessons at the town rec center, a little digging can often uncover deep discounts.

Gently used goods

Parents can also search for gently-used apparel, musical instruments and sports equipment on local parents groups, Facebook Marketplace or resale apps like Mercari to find great deals on back-to-school essentials.

The Takeaway

Whether you are shopping for back-to-school basics or arranging the after-school activity schedule, make sure to keep your children involved in the budget conversation. Help them learn good money habits and boost their financial literacy. Here are some helpful guides on good money habits for you and your child. Loop those little learners into the money conversation early to kick start their financial education.

If you were given $100 to buy back-to-school clothing and accessories, what items would you hope to buy?