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Category: Back To School Shopping

  • Preparing a Budget to Manage Back-to-School Shopping

    Back-to-school shopping in Canada can quickly get expensive. According to an Angus Reid poll of 1,500 people, in 2017 Canadians expected to spend $883 per family on back-to-school supplies and fashion — $325 more than they spent on holiday gifts last year.

    Over half of parents said that back-to-school shopping puts a strain on their household finances. Nearly 40% said it takes months for them to pay off the bill.

    If you’re already in debt, this could mean digging yourself into an even deeper hole. You need a plan to be prepared, especially with the current economic climate in Canada.

    As we’ve previously written, Canadian interest rates are on the rise. This means anything with a variable interest rate (like credit cards) will get more expensive with each Bank of Canada interest rate increase. So, if you rack up another $883 on your credit cards, the interest to pay it back could be potentially even higher if rates keep going up this fall.

    Don’t break the bank with back-to-school shopping — make a plan instead.

    1. Set a Budget

    How much can you reasonably afford to spend on back-to-school expenses without going into debt? Looking at your household budget can help you answer this. If you know what you typically spend in a month without back-to-school shopping, then you might be able to see where there is wiggle room for what you can spend.

    1. Choose Your Priorities

    As you’re reviewing your monthly household expenses, determine what is most important to you. For instance, if you have a monthly budget of $100 for entertainment costs, like new movies or a Netflix subscription, perhaps you forego those expenses this month to pay for back-to-school shopping. If you regularly order takeout, perhaps you decide to devote this month to cooking meals at home and use the savings for your school expenses.

    1. Determine What Back-to-School Supplies You Actually Need

    Your kids may not be big fans of this one, but it will really make a difference to your bottom line. What do they actually need for back-to-school? The school may have sent a list, or you can contact the administration and ask. For instance, they may be required to bring pencils, pens, and a scientific calculator, but they don’t need the latest iPad, the most expensive gel pens, or a brand-new lunch box every year.

    As for clothing, do they need new clothes because they’ve outgrown their old ones, or is new clothing just a nice-to-have? If it’s the latter, perhaps you agree to buy one or two new outfits but cap it at that. You could even put new clothing into your budget for the whole school year and use it as an incentive to keep grades up.

    1. Make Smart Shopping Choices

    Once you’ve determined what you actually need to buy, now you need to decide where to buy it. Some stores are going to cost more. If possible, avoid those shops. Plenty of great supplies can be found at less expensive options, like a dollar store, or , too. If you have friends with children a little older than yours, they may have clothes or school supplies their kids don’t need anymore.

    You can also get creative with your clothes shopping. Consider looking for a clothing swap (or organizing your own). This can be a lot of fun because it feels like going shopping without spending a lot of money.

    If your kids have supplies they’re no longer using, you could also sell those and use the proceeds for this year’s shopping.

    1. Look for Alternate Funding Sources

    If you absolutely must buy an expensive back-to-school item, like a laptop, and there’s no room in your budget, there may be assistance available. Ask about funding programs at your school or in the community.

    If you do need to go into debt to afford the back-to-school expenses, make it a smart debt. Don’t rack up credit card expenses that will take months to pay back, result in high-interest payments, and potentially harm your credit. Also avoid payday loans as they are dangerous cycles that are hard to get out of.

    Instead, look for a small personal loan with a reasonable interest rate that you can pay back in fixed monthly payments. This way you’ll know exactly what you have to pay every month and be able to budget for it accordingly.

    Back-to-school shopping can be expensive, but with some forethought it doesn’t have to break the bank. DebtCare Canada can help you make a budget or explore your options for loans or financial products that help you build credit.

    Contact us today for a free consultation. Call 1-888-890-0888.

  • Money Saving Tips for Back to School

    The summer is winding down and that means the back to school season is just around the corner. While most of us are probably reluctant to think about the relaxing summer days and warm summer nights ending, knowing the kids are headed back to the classroom often isn’t quite so bad! That being said, back to school spending can often put a damper on this exciting season for parents, and so we’ve compiled a list of some of the best money saving tips for back to school!

    Back to School Money Saving Tips

    See what you already have at home before you shop. Make a list of what your children need and raid the closet and supply room. Most of what you need is probably already tucked away somewhere in your home, and thus doesn’t need to be purchased again!

    The local dollar store is your best friend. Sure, those big box office supply stores may seem like the most likely place to find everything your child needs for back to school supply-wise, but of course these places charge far more. Instead, check out your local dollar store for all the same items at much lower price points. You can even turn this into a fun summer activity to beat the boredom by having your kids decorate those items to make them unique.

    Set a budget and stick to it. This is the most important tip. When you set a budget based on what you can afford to spend, and stay within its confines, you don’t run the risk of going overboard or finding yourself strapped when other payments roll around. Let the kids know the budget exists, and that this year a few main items, rather than a whole new wardrobe, is the name of the game.

    Buy in bulk. Making lunch every day can get expensive, so spending a little more upfront can sometimes save you a bunch down the road. Granola bars, juice boxes, fruit snacks – these are all easy to buy in bulk and store at home for easy lunch additions. Be sure to compare the price and volumes of bulk items. Sometimes the savings will surprise you!

    The school year costs money, so start saving for field trips and extra-curricular activities now. Whether your child plays sports, a musical instrument, or is into art or dance, those things cost extra money. So do the numerous field trips and school lunches. By putting away a little each week, starting at the beginning of the year, you won’t feel so strapped when the events come up since you’ll have a little bit of extra cash stashed away just for the occasion.

    For many parents, the back to school season can be almost as expensive as the holiday season, so this year take these back to school money saving tips to the bank and save!

    Finding yourself concerned even with these tips? At DebtCare, our goal is to help you establish financial security no matter what your current situation is.

    Call us today for a free consultation. 1 (888) 890-0888.

     

  • Back to School Blues? Consolidate Credit Cards and Stop the Interest

    The back to school season, particularly for parents, is often a very hectic time of year, especially with regard to finances. The need/desire for new school clothes, shoes and supplies often leaves parents with racked up credit cards once all is said and done – or rather, purchased. And often accompanying these credit card bills is the challenge of finding money to pay them off.

    Check out this infographic from BMO to see just what these costs add up to:

    debt1

    So, what options are available? Consolidating credit cards is a great way to reduce your debt – and often makes sense – but the type of consolidation depends on your own personal circumstances. Here are a few options that may be available to help you deal with that back to school debt.

    1. Home equity loan. By using the equity in your home, you can consolidate credit cards, thereby reducing interest and consolidating the various bills into one monthly payment. Of course, this is only possible if you own a home and have sufficient equity for this purpose. If you rent, or are without equity, this is probably not going to be a viable option for you.
    2. Consumer proposal. This is another great option, especially if your credit isn’t great or if you don’t have the security or equity for a loan. A consumer proposal will have some impacts on your credit in the short term, but this is balanced out by the fact that interest stops accumulating, there is, like a loan, just a single monthly payment, and in many cases the overall debt owing is reduced.
    3. Line of credit or loan from a lender. This is another good option, and can achieve the same things as a home equity loan: lower interest and one monthly payment. You will need to have good credit or security for this option. At the same time, this is often the most expensive option of all because it will involve higher interest than a home equity loan or a consumer proposal.

    Kids are expensive, and when back to school season rolls around, they can become even more so. Once those bills start coming in, don’t stress. Call DebtCare Canada to find out about how to consolidate credit cards and get rid of debt: 1-888-890-0888.

     

  • Back-to-School Shopping – Don’t Break the Bank

    Don't Break the BankWith the end of the summer and the beginning of September comes the inevitable back-to-school shopping. Whether for new clothes, shoes, backpacks, or school supplies, the total bill for back-to-school shopping can often run in the hundreds – especially if you have more than one youngster heading back to the classroom. Once they get older and those clothes they want become big ticket items, the bills get even heftier. Here we offer some smart back-to-school shopping tips that will help keep you from breaking the bank.

    Tip #1: Make a list. Get the kids to help. Set a budget and stick to it. Clothes can get expensive, even with the sales, so separate wants from needs.

    Tip #2: Do inventory. Many of the things you need are likely already in the house. Go through and see what can be reused. Backpacks and pencil cases can be repurposed with fun fabrics, old patches, fabric paints, etc. Pencils are the same no matter how old they are. And always hold off on other purchases until you get a list from the teacher of what will be needed.

    Tip #3: Talk to other parents. Word of mouth counts for a lot as far as finding deals – you might be surprised about what sales are out there that you were not aware of. They may also be able to provide other money saving tips.

    Tip #4: Buy the basics in bulk and make lunches. Packing brown bag lunches can save a lot of money, and buying your lunch snacks in bulk can make it even cheaper. Avoid added costs such as drinking boxes by spending a few dollars upfront for a fun reusable water bottle – healthier and cheaper.

    But what if your back-to-school budget is a lot less forgiving than these tips compensate for? If you are drowning in debt, back-to-school shopping can come with a great deal more stress than just having to brave the crowds. The beginning of the school term often signals a fresh start for kids, so why not take this chance to make a fresh financial start for yourself. Getting out of debt is a good idea at any time of the year – but any motivation that spurs you into action is a good thing.

    A smart option for reducing your debt, especially if you have tried on your own with little success, is to turn to the professionals for help. A professional debt consultant can not only help you better understand the various debt solutions out there and which one would best suit you, he or she can also help you develop a smart budget that is realistic. You don’t have to do it alone. Let the teachers at ‘debt school’ help you take control of your debt.

    For more information about getting out of debt this September, please call DebtCare Canada by calling 1-800-890-0888 or visit us online at www.debtcare.ca.