Financially Preparing for the Upcoming School Year
As summer hits its stride, back-to-school season may still feel far away—but financially speaking, it’s never too early to start planning. Whether you have a child heading into kindergarten, high school, or college, the costs of a new academic year can sneak up quickly and strain your budget if you’re not prepared.
At Colorado Wealth Group, we believe that a little planning now can go a long way in reducing financial stress later. Here are a few smart strategies to help you prepare for the school year ahead with confidence and clarity.
1. Set a Back-to-School Budget
From backpacks and school supplies to clothes, technology, and extracurricular fees, the costs can add up quickly. Start by making a list of everything you anticipate needing for each child. Use last year’s spending as a reference point if possible.
Tip: Break your budget down into categories—supplies, clothing, tech, and activities—so you can track spending and look for areas to save.
2. Shop Smart (and Early)
Retailers often roll out back-to-school deals during mid-to-late summer, but waiting until the last minute can limit your options and force you to overspend. Take advantage of:
- Early sales and tax-free weekends
- Bulk supply discounts
- Secondhand clothing or refurbished electronics
- Cash-back or rewards programs tied to your credit cards
3. Review and Refresh Your Childcare or Tuition Plan
If you’re paying for private school, daycare, aftercare, or tutoring, now is the time to review costs and ensure your payment plans align with your monthly cash flow. For college students, revisit financial aid, scholarships, and savings strategies such as:
- 529 Plans
- Flexible Spending Accounts (FSAs)
- Automatic transfers to education savings accounts
4. Plan for Extracurricular Expenses
Sports, music lessons, clubs, field trips, and school events are often overlooked in initial budgeting. Start a small “school extras” sinking fund to handle these variable expenses as they arise throughout the year.
5. Use the New School Year as a Teaching Opportunity
If you have kids old enough to understand money basics, involve them in the planning process. Give them a say in how to prioritize spending or challenge them to help you find sales and discounts. It's a valuable life skill that will pay off in the long run.
6. Work with a Financial Advisor to Stay On Track
If you’re balancing education costs with other financial goals like saving for retirement, paying off debt, or investing, it helps to work with a professional. A personalized financial plan can help you:
- Strategize savings and spending through the school year
- Identify potential tax advantages
- Ensure your long-term goals aren’t derailed by short-term needs
Final Thoughts
The school year may only last nine months, but smart financial planning now can set your family up for success well beyond the classroom. Whether you're tackling tuition or shopping for supplies, a thoughtful approach to back-to-school spending can make all the difference.
Need help reviewing your budget or creating a family financial plan? Contact Colorado Wealth Group today—we’re here to help you make the grade financially.
