Crash Course in Budgeting: Back-to-School Shopping

Back-to-school shopping can be the perfect chance for high school students to test their budgeting skills. School supplies are an expense of which teenagers can take ownership and understand. Parents should try to use the end of summer rush as a learning opportunity, and let teens taking charge of the back-to-school money. 

Teens and parents should first establish the dollar amount to be used for supplies. Then strike a deal: If the student gets everything needed with money left over, then the remaining money can be used for something fun (movies, iTunes, clothes, etc.). The reward encourages teenagers to actively participate and shop around for the best bargains.

Students should write a list of everything they will need for the academic year, including class supplies (often given in schools' supply lists) and new clothing or shoes. Parents can then hand over the budget. Cash may be best for teens new to budgeting. Paper money is more tangible than debit; and once cash is gone, it's gone. 

After that, teens can start comparison shopping by checking prices in nearby stores or online. Students should calculate carefully since the budget money has to be stretched to cover all school-related expenses. For example, a backpack may be $5 cheaper online than in store, but the online store charges $7 for shipping. A designer shirt may be on sale for $25, but that is twice the cost of shirts at the discount store. 

Teens should also practice setting aside money for expenses that they know will arise once the school year begins. There may be required club dues to pay, or equipment fees for sport activities. Teens can contact the school ahead of time to find out about such costs, then include the fees in their budgets.

Teens can show their parents how well they managed their money by keeping track of the receipts. At the end of the back-to-school season, parents and kids can review the good spending habits using the remaining money and receipts. If there was no money left over or if the teen did not get everything on the list, then parents can explain how to shop better from now on.

Readers, what do you think? Would you like to take charge of your back-to-school budget? When is it important for kids to start learning about budgeting?

Reference: Gobel, R. (2010, Sept. 10). Back-to-school budgeting lessons. Mintlife. Retrieved July 25, 2012, from http://www.mint.com/blog/how-to/back-to-school-budgeting-09012010/.