AICCCA Says Take a Back to Basics Approach to Back-to-School Shopping

FAIRFAX, VA - August 15, 2011 — Parents getting ready to send their children back to school can use a back to basics approach when they begin their back-to-school shopping this year and teach their students some valuable financial lessons at the same time.

"Overspending on back-to school shopping is very easy to do" said Dave Jones, president, Association of Independent Consumer Credit Counseling Agencies. "The proverbial teachable moment is right there for parents who use the opportunity to teach some basic money skills."

• First things first - how much is it going to cost? Having an idea of the overall cost is a great exercise for children and their parents. Have your children help by checking out the back-to-school ads in the paper or online to learn what the prices are for things you will need to purchase. This will enable you to find out how much it is going to cost to go back to school and if the family budget can allow for that amount. If not, look for some ways to cut back on those costs.



• Can we take advantage of a tax-free holiday? More states than ever are offering tax-free holidays for back-to-school shopping. In 2011, 18 states will offer a holiday. Retailers often run special sales during the holiday and if you add the tax savings, you may save a significant amount of money. The holiday is held over a long weekend, or even a whole week in some states, but rules and regulations do apply. Let the kids help by having them investigate online your state's guidelines before you go shopping.



• What do we need? Have each child make a list of everything needed, including clothing, shoes, backpacks and school supplies. Don't forget athletic equipment or other extracurricular needs. Using your total amount to spend as the guide, assign a dollar value to each item for each child.



• Do we already have some things? Get out last year's backpacks and check for items that are still useable. Rulers and scissors don't need to be replaced every year and you might even find highlighters, pens and pencils that are like new. Look for unopened packs of paper or unused folders that can be used this year. Mark off any item that can be reused from the shopping list.



• Do you want it or do you need it? This is a chance for parents to talk to their children about needs versus wants. For instance, jeans and athletic shoes are two items on most back-to-school shopping lists whose costs will vary widely, depending on the brand name. Be sure to compare other brands, but if only a certain brand will do, look for other ways to cut back. For instance, buy two pairs of jeans instead of four pairs. You might also give your children the option of putting some of those items on their holiday wish lists to spread out the spending.



• How can we shop smart? Many stores will offer a handy package of required school supplies, especially for younger children. Be sure that you do not pay extra for this convenience, especially if you are shopping for more than one child. Look for items on everyone's list and see if buying those items in larger quantities gives you a better price break. If having a "package" is important to your children, plan a day after you shop to package your own set of supplies for the first day of school.



• How will we pay? Pay with cash, check or debit card when possible. If you must charge some items, try to come up with a plan that will enable you to pay the credit card bill in full when it arrives or at least within 90 days.



• How can we prepare for next year? Save your receipts and work with your children to devise an easy filing system. Where you may have fallen short of your planned expense, make note of those items on your list. Next year when you repeat the exercise, you can work with your children to research those items in more detail and maybe find other, more affordable solutions.
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.