Back-to-School Budgeting Made Easy: How Families Can Cut Costs and Stress

From notebooks and new shoes to tablets and tuition, the average family spends hundreds gearing up for a new school year. But a little planning goes a long way. Whether you're shopping for your kindergartener or your high schooler, here's how to make the most of your budget this season without sacrificing your child's success or your financial freedom.

1. Start with a Budget

Before you hit the store or click “Add to Cart,” take stock of what you really need. You can start this by looking around your own house. Your child may have leftover supplies from the previous year that’s still in good condition, such as crayons or markers, pens, rulers, and more.

Once you’ve taken stock of what you need to buy, create a back-to-school budget that covers items you need, which may include:

• Supplies and uniforms
• Technology upgrades
• Lunches and after-school care
• Activity fees or tuition

Tip: Consider using a financial tracking app to help monitor your spending, which will ensure you’re sticking within your budget.

2. Shop Smart and Save Big

You don’t have to sacrifice quality to score deals. Get creative with your back-to-school shopping and look for deals in stores where you already regularly shop.

• Use loyalty programs and coupon apps for extra savings.
• Buy in bulk and split supplies with other families.
• Reuse what you already have; you might be surprised how many items are still in perfectly good condition.
• If your child needs a uniform, see if their school offers used uniform sales or swaps throughout the spring or summer seasons. 

Tip: Some schools and local nonprofits offer free supply drives. It never hurts to ask!

3. Open a Youth Savings Account

The new school year is the perfect time to teach kids about money. After all, it’s highly likely they’ll be learning about it in their classrooms! With youth savings accounts, children and teens can:

• Learn to save and manage their own money
• Track their balance through a secure platform
• Receive age-appropriate education on personal finance

Older children especially will receive hands-on experience with their own accounts. Once they’re mature enough to monitor their accounts, they’ll be able to apply their learning from the classroom out in the real world.

Tip: Choose one of American Heritage Credit Union’s five youth accounts, tailored for five different age groups, and help set your child on the path to financial success. The benefit of these accounts is that they will grow with your child, evolving to contain more features as your child matures.

4. Try to Reduce Reliance on Credit and Plan Ahead

It’s tempting to swipe your way through the back-to-school season, but that can lead to added stress later. Instead:

• Build a back-to-school fund in advance.
• Use credit cards strategically and pay off balances quickly.
• Explore a low-rate personal loan or balance transfer if you're carrying debt.

Tip: We’re proud to offer Personal Loans to a members to meet a variety of needs, including back-to-school expenses! Our Personal Loans come with flexible terms and low rates, allowing you to successfully pay for school expenses like room and board, books, technology, and more. Click here to apply* today.

If you’re overwhelmed, talk to an American Heritage representative about debt-reduction options that work for your family.

5. Build a Cushion for the Unexpected

Back to school also means back to the unexpected: extra educational field trips, broken calculators, and surprise projects. Get ahead by building an emergency fund.

• Work to save 3 to 6 months of living expenses, if you can! But if not, don't be discouraged—remember that every little bit helps.
• Create mini-funds for school-related extras. Consider a separate checking or savings account for this purpose, which could also limit your temptation to spend these savings.
• Automate transfers on payday so you don't forget.

Tip: American Heritage offers High-Yield Savings Accounts and Certificates with flexible terms, like a 5-Month Certificate or the Bump-Up Certificate, which lets you increase your rate once during the term.

6. Think Long-Term: Tuition, College & Beyond

If you’ve got a future valedictorian on your hands, it’s never too early to plan for higher education costs.

• Open an Education Savings Account or 529 Plan. 
• Explore IRA Certificates for long-term savings. 
• Teach older kids the importance of budgeting for college.

Tip: American Heritage’s Investment & Retirement Center (IRC)** offers financial planning and investment advice, so you don’t have to plan alone.

A Smarter School Year Starts with a Plan

Back-to-school season is a great time to reinforce good financial habits for you and your children. It’s a time to start fresh and demonstrate responsible spending. From smart shopping to starting a youth savings account, every step brings you closer to financial security and personalized financial planning that works for you and your family.

It’s also crucial to remember that you’re not alone in back-to-school shopping! Consider talking with other parents at your child’s school, as well as relatives and neighbors. You’re bound to pick up some helpful tips and strategies that you can use for yourself and your child.

*Subject to credit approval. All offers are subject to change without prior notice.

**Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed  affiliates. American Heritage Credit Union and The American Heritage Investment & Retirement Center are not registered as a broker-dealer or investment advisor. Registered representative of LPL offer products and services using American Heritage Investment & Retirement Center, and may also be employees of American Heritage Credit Union. These products and services are being offered through LPL or its affiliates, which are  separate entities from, and not affiliates of, American Heritage Credit Union or American Heritage Investment & Retirement Center. Securities and insurance offered through LPL or its affiliates are: 

The LPL Financial registered representative(s) associates with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.