Back to School!
It’s that time of year again where summer is winding down and the kiddos are getting ready to head back to school or already have started. My youngest is starting her senior year in high school and I am so excited for her! Back-to-school shopping and getting your finances organized might seem like two unrelated tasks, but there are several parallels between them. Here's how they are similar:
Budgeting: Just as you need to set a budget for back-to-school shopping to avoid overspending, you also need to create a budget for your overall finances. This helps you set aside funds for various expenses and ensures you're not spending more than you can afford. Some schools have started putting together school supply bundles where you pre-order a set of supplies based on your child’s grade and they get them right before the start of the year. This helps take some of the stress out of back-to-school and they usually qualify for a group discount for ordering all of the supplies in bulk and saves you the time of shopping for everything.
Planning: Both tasks require careful planning. With back-to-school shopping, you make a list of necessary items and plan where and when to shop. Similarly, financial organization involves planning for expenses, savings, investments, and debt repayment. It can relieve a lot of anxiety in both situations to understand what you have and what you need so that there are few last-minute surprises.
Prioritization: In both cases, you need to prioritize your needs over your wants. When shopping for school supplies, you prioritize essentials like textbooks and stationery over non-essential items. Similarly, in financial organization, you prioritize essential expenses, debt reduction, and savings over discretionary spending. Sometimes you want to prioritize only the basics and sometimes you want to treat yourself with the best, most colorful gadgets to make it more fun!
Research: Just as you might research products and prices before making back-to-school purchases, you should research financial options, such as different savings accounts, investment opportunities, or loan terms, to make informed decisions. I tend to over-research things, but doing a little research to find out what has the best reviews and the best features for your situation can save you headaches in the long-run.
Minimizing Waste: Just as you avoid buying unnecessary items during back-to-school shopping to reduce waste, financial organization involves cutting unnecessary expenses to save money. Don’t pay account fees, late fees or over-limit charges when they aren’t necessary. Similarly, don’t buy a bunch of things that happen to be on the supply list until you are sure that your student needs them. They may have things leftover from last year and many times things are on the list as “recommended” but are not really used at all.
Setting Goals: Both tasks involve setting goals. You might have academic goals for the school year, and in terms of finances, you might set goals for savings, debt reduction, or investments. If you don’t set goals for your finance or your academics you may be less motivated to do the work. Having something to shoot for helps you stay organized and driven to succeed.
Adaptation: Circumstances can change such as your classes or your job, requiring adjustments in both back-to-school shopping and financial planning. Flexibility is essential in both areas to accommodate unexpected expenses or changes in income. Sometimes kids get stressed out because their teacher changed last minute or they got a class they aren’t really excited about. Letting them work through these changes without stepping in to “fix it” can help your child build resilience and flexibility they need to deal with challenges later on. Change is a part of life and being flexible can help you pivot to something new when necessary.
Long-Term Benefits: Properly organized finances can provide long-term benefits, such as financial security and future planning. Similarly, a well-organized approach to back-to-school shopping can set a positive tone for the school year and help with academic success. Helping your student put together a shopping list, study space, study schedule and ideas for healthy snacks can help get them on the right track for a great year.
Both back-to-school shopping and getting your finances organized require thoughtful planning, budgeting, prioritization, and decision-making. By applying similar principles to both areas, you can improve your overall financial well-being and ensure a successful start to the school year. Have a great year!
