Fairfax, VA - July 27, 2007 —
School is just around the corner and that means it's time to start thinking about back-to-school expenses. To keep from starting the school year in the red, consumers need to have a plan before they start shopping.
"The cost of preparing children to return to school goes up every year and it's very easy for consumers to overspend," said Dave Jones, president, Association of Independent Consumer Credit Counseling Agencies. "Just like all major expenses, consumers must plan in advance or they may find themselves using credit to fund these expenses."
AICCCA offers the following back-to-school shopping tips:
Decide how much you can afford to spend.
Look back and what was spent last year and determine a general idea of the amount your household can afford for back-to-school expenses this year. Check the ads in the paper or look online to determine prices for things you will need to purchase to find out if the amount you have decided on is realistic.
Construct a budget.
Make a list of everything each child will need, including clothing, shoes, backpacks and school supplies. Don't forget athletic equipment or other extracurricular needs. With your total amount to spend as the guide, assign a dollar value to each item for each child.
Inventory supplies on hand.
Get out the backpacks and look at what is still useable. Highlighters, pens and pencils may be like new; you may also find unopened packs of paper or unused folders that can be used this year. Any item that can be reused should be marked off of the shopping list.
Look at needs versus wants.
Jeans and athletic shoes are only two areas where brand names may take a larger bite out of the budget than anticipated. If only a certain brand will do, find other ways to cut back. For instance, buy two pairs of jeans instead of four pairs. Consider putting some items on holiday wish lists to spread the spending out.
Shop smart.
Schools usually publish a list of required school supplies and many stores will package these supplies in one bundle. Check to be sure that you do not pay extra for this convenience, especially if you are shopping for more than one child. Buying in larger quantities may give you a better price break.
Take advantage of sales tax free holidays.
Fifteen states offer tax-free holidays for back-to-school shopping. Usually held over a long weekend, consumers can save quite a bit of money on those items while they are tax-free. Rules and regulations apply, so know your state's guidelines before you shop.
Pay with cash on hand.
Plan to pay by cash, check or debit card when possible. If you must charge some items, come up with a plan that will enable you to pay the credit card bill in full when it arrives.
Plan for next year.
Save your receipts and devise a filing system that is easy to manage. Where the budget may have fallen short, make note of those items on your list so that you can research those areas more fully next year.
Founded in 1993, Association of Independent Consumer Credit Counseling Agencies (AICCCA) is a national membership organization, established to promote quality and consistent delivery of credit counseling services. AICCCA and its members are focused on improved creditor relations, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, counsel millions of consumers annually nationwide and provide debt management services to consumers with excessive unsecured debt. For more information or to contact an AICCCA member office call 866-703-TRUSTAICCCA (866-703-8787) or visit www.aiccca.org.
