When budgeting, consumers need to be sure to account for the various months where expenses are expected to increase. For those who have children, one of these times of the year is during August, as back-to-school shopping season gets under way.
Buying school supplies and new outfits for children don't have to lead to financial trouble, and avoiding these mistakes can help make this month’s shopping experience a success.
Mistake No. 1 – Failing to create a budget
The first step any parent needs to take before leaving their house is to establish how much money they are able to spend on clothes and school supplies. Failing to do this can lead to overspending, which may result in people falling short for other expenses. That being said, it is important for consumers to examine their expenses so they are able to know exactly how much money they can spend without going over budget.
Mistake No. 2 – Not strategically picking a credit card to use
Often, parents will make back-to-school purchases on their credit card, but if they don't choose the right one this can lead to financial trouble down the road. For instance, the best card to use is sometimes the one with the lowest interest rate. It would also be smart to buy items with plastic that offers cash back rewards. Even consumers who believe they will be able to pay the balance in full should avoid buying their children's supplies with a high-interest credit card, as there are numerous things that could happen that can lead to them being forced to carry the balance and incur a lot of interest.
Mistake No. 3 – Not shopping online
When back-to-school shopping, many parents still choose the traditional route and go to physical stores, but this could be costing them money. Instead, consumers should stay in the comfort of their homes and shop online. Oftentimes, retailers offer discount codes during the months leading up to the new school year, and these aren't always available in stores. Additionally, free shipping is a staple of the back-to-school months, so there is no reason to head to the physical store.
Mistake No. 4 – Not buying on-sale items for the future
As the school year approaches, many retailers begin to discount items to get them off the shelves. At this time, parents should take full advantage and stock up for next year. Folders, notebooks and pencils don't go bad, so buying them at a steep discount could be a great money saver.