Don’t be complacent about back-to-school costs

    September rolls around quickly and with it comes the back-to-school expenses. For a family with two students in K-12, the average cost of supplies can be as much as $1,000. In any economy, that’s a tough pill to swallow. But in today’s economy, it can be budget busting, which is why parents can no longer afford to be complacent about planning for back-to-school expenses. What to expect: The basics
    Elementary school: Today’s elementary student still needs all the basic school supplies that you would expect-pencils, pens, ruler, scissors, glue, notebook, backpack, lunchbox, etc. This is pretty much the same things that a kid going to school in 1972 would need. However, even basics add up quickly, and some teachers require more than others. So it is wise to have a comprehensive list before the fall arrives. In addition, elementary students often have field trips, music and athletic fees. Some parents may also choose to go above and beyond to give their student an advantage with tutoring and educational toys and games.
    Middle and high school: While the older student also needs basic supplies, one big thing has changed since 1972 -education has gone high-tech. Today’s students are often required, or can benefit from, high-tech calculators, laptops, software, summer reading books and test prep fees. This doesn’t even include a cell phone, which whether you agree with it or not is often considered a must-have for both parents and kids.
    And we haven’t even discussed the new fall wardrobe … But don’t let it overwhelm you. With careful planning and budgeting you can be relaxed and prepared for the new school year.
How to budget and save
    Save yourself the headache of having to scramble to pay the back-to-school expenses with a few simple guidelines.
    Make a list. This seems obvious, but it is really the most sensible way to start. Find out exactly what your student will need and how much it will cost. Check with schools/teachers to see what the requirements are for supplies. Sit down with your child and draw up two lists: one of necessary items and one “wish list” of things that he or she may really want but might not actually need.
    Save early. In an ideal world, you would begin to put money away in the spring, perhaps even earlier. For those of us who do not live in that ideal world (most of us, by the way), try to save what you can now by decreasing your spending in other areas. Every little bit helps, and the more you save, the better prepared you will be for school expenses.
    Share the spending. Kids need to learn how to manage money. It is one of the most valuable skills you can teach them. So take this opportunity to teach them about the value of saving and spending wisely. Even an elementary student can contribute to the back-to-school fund and learn an important lesson about responsibility in the process. Think beyond your own family as well-carpool to sporting events, summer programs, etc. It might only help a little, but even a little helps.
    Spread out spending. If you don’t need it right away, wait to buy. Buy the essentials and perhaps one “splurge” item. We definitely live in a culture of instant gratification, but this often leads to overspending and overextending. Maybe those expensive new sneakers and trendy backpack can wait – and they may be on sale after school begins.
    Shop wisely. You’ve saved money, made a comprehensive list with your student and now you’re ready to hit the stores. Shop wisely so you don’t undo all your hard work. Check circulars and sale flyers, comparison shop different stores if you have time and find sales on the items you need. Consider buying used if you can.
The student’s role
    Place some expectations on your child when it comes to money and preparing for the new school year. You want to provide for your children, but at the same time you can enable them to learn about financial independence. Provide the opportunity to learn respect for money by making them responsible for a portion of their expenses instead of fostering a sense of entitlement.
    If you start teaching your child to save at a young age, you will be teaching her or him to develop life-long good spending habits. Before your child even starts school, he or she can learn to save with a piggy bank. Kids feel very proud when they purchase things with their own money. Here are some tips for working with different school-age groups:
    Elementary school. When kids start school, they are old enough to have an allowance based on chores, which is a great new financial learning experience. Require your children to purchase certain items, and they will be motivated to save. As your student nears double digits in age, you can introduce a bank account and more opportunities to earn. Encourage your children to set savings goals-that cool new backpack or those hot sneakers-and allow them to spend when the time comes.
    High school. The older kids get, the more pressure there is to spend. Be the voice of reason. This is the time to instill values in your kids, to build on previous financial lessons instead of caving. Encourage your children to earn a paycheck and set financial goals. Begin discussing college costs with them and explore investments. Teenagers can understand long-term saving, so enable them to take ownership of their finances.
Being Prepared Is All about Preparation
    If there is one lesson we can take away from the last decade, which has been marked by natural disasters, devastating acts of terrorism and now a deep economic recession, it is this-persevering and surviving is much easier when you have a plan in place. Back-to-school budgeting is the same. After all, summer days are meant to be long, lazy, and full of quality family time. If you get a grip on your back-to-school expenses now, you’ll be able to relax and enjoy the rest of the summer. More important, when the school year rolls around, you’ll be less stressed and confident that you and your student are well prepared for what is most important-building a strong foundation for their future.
    Cheri Doak is senior vice president and retail banking leader at Key Bank in Maine. She can be reached at (207) 764-9425 or via e-mail at cheri_doak@keybank.com.