Back-to-school budget: How much to save & tips for parents

The first day of school is right around the corner. But with the excitement of another academic year comes a hefty price tag for many U.S. families and educators. This fall, parents of K-12 students expect to spend an average of $586 per child on back-to-school shopping—not including the cost of extracurricular activities.¹ While some of this staggering total can be linked to the lingering effects of inflation, many families also attribute it to the growing list of must-haves—especially in categories like technology and apparel.

And while every parent wants to set their student up for success, it’s entirely normal to feel financial stress and anxiety in this heavy spending season. A back-to-school budget can help you and your children manage those emotions, set expectations and protect against overspending.

Here’s how much you should plan for and additional ways to save on your shopping.

When determining an appropriate budget for back-to-school expenses, it's helpful to have a number in mind of what families like yours can expect to spend this year.

Parents of children in elementary, middle or high school are planning to spend a household average of $875 on clothes, shoes and school supplies this fall, according to a recent report. This comes down to roughly $586 per child (about 1.5 children per surveyed household).

Keep in mind, your final total will depend on your family size, where you live, personal preferences and the availability of specific items. But here’s a look at how these averages break down and an overview of common expenses.

Apparel and shoes tend to be top categories for back-to-school shopping. But they’re only two pieces of the puzzle. Here’s an idea of the type of expense along with the average estimated cost per student.^*

• Clothing: $169
• Shoes: $113
• Electronics & technology: $206
• School supplies (i.e., notebooks, folders, glue, pencils, markers, scissors): $94

If your child attends a college or university and you help them with education-related expenses, you may wish to pad your budget further. Families expect to spend an average of $1,364.75 per child on back-to-college this year.¹

The reason? College students typically require additional supplies not needed by K-12 kids. Those can include everything from extra technology and textbooks to toiletries and dorm furnishings. And that’s not even counting tuition, room and board, and books. Consider these expenses and the average estimated cost per college student.³

• Clothing: $182
• Shoes: $113
• Electronics & technology: $337
• School supplies: $95
• Toiletries/personal care items: $115
• Dorm/apartment furnishings: $190
• Initial food/groceries: $151
• Gift cards: $105
  

While it’s helpful to set a realistic expectation of school-related expenses, sometimes the bigger reality is that you’ll need to trim your spending more than you thought. Here are five tips to help you do just that.

1. Stick to a list. Following a shopping list can help ensure you aren’t tempted by impulse buys. Many K-12 schools and classrooms issue supply lists tailored toward your student’s curriculum and grade level. Dividing your shopping list into these essential must-haves and additional nice-to-haves can help you more easily identify costs to cut.

2. Reuse what you can. In many cases, your child likely has some back-to-school basics that are “buy once, use many”—from backpacks and folders to computers and sporting gear for extracurriculars. Before you head to the store, take inventory of items you already have that can be used again. You also may encourage your child to prioritize gently used, “new to you” items that are handed down from a friend, neighbor or older sibling. Or items purchased for a low price at your local thrift store.

3. Compare prices. Before you “add to cart” online or in person, be sure to check a few other stores or sites to make sure you can’t get the same, or similar, products for cheaper. In exchange for your business, some vendors even may be willing to price match their competitors.

4. Leverage credit card rewards and cashback. Many credit cards offer cash back on purchases that you can potentially tap for school-related purchases. Just keep an eye out for potential annual fees and APRs that could pose future financial challenges.

5. Buy in bulk. Consider buying school supplies in bulk with other families to split costs.

Looking specifically for low- or no-cost education essentials? Consider these options.

1. Look locally. Your town may host school supply drives where you can snag items for free. Check with your school district to see what programs or financial aid may be available.

2. Dig for deals. Check out larger chains and discount stores for competitive deals on school supplies, especially back-to-school sales and end-of-summer discounts.

3. Take advantage of tax-free school supplies. Your state may offer a sales-tax holiday or tax-free weekend to help ease the financial burden of back-to-school shopping. Alternatively, it’s possible you live in a state without sales tax, period.

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Summer comes and goes in the blink of an eye, sometimes making it difficult to budget for the start of school quickly enough. But with some proactive planning, you can practice healthy budgeting habits year-round, with flexibility to accommodate seasonal expenses like back-to-school and holiday gifting.

There are many types of budgeting methods and strategies:

• Pay yourself first (also often known as 80/20)
• 50/30/20 method
• Envelope method/cash stuffing
• Zero-based budgeting

But the best budgeting method is whichever one works for you. Here are a couple examples of how you could plan for back-to-school expenses within some of those frameworks.

The 50/30/20 rule has you split your income into three portions: 50% for your needs, 30% for wants and 20% for savings. Applying this strategy to back-to-school budgeting pushes you to divide your shopping list into must-haves and nice-to-haves. A must-have like a required computer program for an engineering course would come from your “needs” bucket, but a nice-to-have like new gym shoes (even though last year’s pair fit and look just fine) would come from your “wants.”

If you’re a very visual learner or literal thinker, envelope budgeting, or cash-stuffing, may be right for you. In this method, you keep cash in envelopes that represent different categories, like groceries, dining out and entertainment. It prevents you from overspending and allows you to give every dollar intention. You can create a “back-to-school” envelope to contribute to throughout the year.

Regardless of your children’s ages, involving them in back-to-school budgeting can be an important way to teach financial literacy and lifelong lessons, like differentiating between wants, needs and wishes and playing an active role in financial decision-making.

Asking them to chip in on some expenses—especially if they earn an allowance or may have made some money from a summer job—also can give them an opportunity to invest in their education. And it can help you avoid straining your own finances for the sake of getting them one of their nice-to-haves. For example, you may agree to buy them a basic model laptop, but if they’d like a specific brand or one with more advanced features, they’ll have to pay the difference.

Education can be expensive, and back-to-school shopping is just one part of that. On top of budgeting, here are some ways Thrivent can help you and your student(s) for the long haul:

• Explore college savings plan options—like 529 plans, Coverdell accounts, IRAs, UGMA/UTMA accounts and more.
• Take advantage of free 1:1 money coaching through our virtual Money Canvas^TM program.
• Discover education-focused financial articles (like this one) that you can share with friends and family.
• Partner with a financial advisor to help optimize your savings, plan for expenses and ensure your family’s financial needs are met.