Saving Every Day - Back-to-School On A Busted Budget

ClearPoint Credit Counseling Solutions offers money-saving tips for parents

With store mailers touting savings on everything from jeans and tee-shirts to notebooks and laptops, parents and students are gearing up for the start of the school year. Although national back-to-school spending is on the decline, a recent survey by the National Retail Federation reveals that this year, the average family is expected to spend $548.72 on school merchandise.

According to the same survey, 85 percent of Americans say that the poor economy has changed how they will shop this season by hunting for sales, spending less overall and cutting back on sports and extracurricular activities.

The following are suggestions on how to save from the expert consumer credit counselors at ClearPoint Credit Counseling Solutions

Look for lists of required items-Reviewing lists from instructors or the school administration will give you the starting point for your own shopping list. Many schools have dress codes or require certain gym clothes. By including these items on your original list, you'll give yourself time to comparison-shop and avoid duplicating similar purchases. If your child needs black pants for a uniform, for instance, add them to your list so you don't pick up blue pants only to later learn you'll also need black ones.

Make a list-When you make a list, you make a plan, which helps you to avoid impulse shopping. Stick to the "needs" and avoid the "wants." For instance, "Three pairs of pants, four shirts and one pair of new shoes" sets the parameter for your clothing needs. You can even list your children's two to three favorite stores and agree you'll visit each to compare prices and styles. Together, you can decide what to buy and where.

Take inventory-Clothing comprises the bulk of back-to-school spending. According to the NRF research, clothing and shoes represent more than 50 percent of a family's back-to-school budget. Dig through your children's dressers and closets. Do they have jeans they never wore? Does the skirt that was a little long, too loose, or tight last year fit this year? Gather any school supplies you already have-notebooks, scissors, pens and cross them off your list.

Watch for sales tax holidays-Nineteen states offer sales tax holidays when school supplies, clothing and shoes purchases are tax-exempt. For example, those living in Washington D.C. can escape paying 5.75 percent sales tax by doing their back-to-school shopping in nearby Virginia (on August 7-9) or Maryland (August 8-14). Search your state's name, "back-to-school," "tax break" and "2009" to see which states temporarily repeal their sales taxes.

Look for special offers-Check the advertisements in your local papers and online at the Web sites of discount retailers and drug stores. Also search the Internet promotional codes for your online school shopping.

Pay with cash-Avoid paying unnecessary interest by using cash whenever possible. If you do use a credit card, schedule to pay off your back-to-school costs in a month or two.

Buy and sell used-Consider buying clothes at thrift stores, used textbooks or used or refurbished laptops or cell phones. Kids tend to be hard on clothes and electronics, so why pay more for everyday items that are likely to end up well-worn soon anyway?

Avoid waiting until the last minute-Shopping at the last minute doesn't allow you to compare prices, is more stressful and makes it more tempting to buy on impulse, just to get your shopping over with.

In addition to stretching your dollar in this economy, how you handle your money today teaches your children how to handle their money in the future. If you splurge, your grade-schooler, pre-teen or teenager won't learn self-restraint. With a list and plan of action, you can both stay within your budget and teach your kids how to buy what they need with limited resources.

ClearPoint Credit Counseling Solutions (CCCS) is a member of the National Foundation for Credit Counseling (NFCC), a system-wide accredited business with the Council of Better Business Bureaus, and a U.S. Department of Housing and Urban Development (HUD)-approved housing counseling agency.

ClearPoint offers free budget and credit counseling from certified Financial Specialists. To schedule an appointment or start your session immediately, call (877) 877-1995 or visit www.ClearPointCCS.org.