Back-to-school season is the perfect time for families to reset their finances

It’s that time of year again when stores swap out summer decorations and fill their aisles with folders, notebooks, backpacks, and everything else on students’ back-to-school shopping lists. While many families focus on checking supplies off their lists before the first day of school, the season is also an ideal time to take a closer look at household finances and prepare for the expenses that will continue throughout the school year.

According to Colleen Shepherd, community outreach director at Purdue Federal Credit Union, back-to-school season offers families the chance to start fresh financially.

“Back-to-school season is one of the best times for families to review their finances because it naturally kind of brings attention to our spending, our routines, upcoming expenses for the remainder of the year,” Shepherd said. “We tend to consistently focus so much on the school supplies and the clothes and the schedules, but it gives us an opportunity to make sure that the family’s overall financial plan is ready for the school year ahead.”

Rather than only budgeting for August, Shepherd encourages families to think about the months ahead. Setting savings goals, reviewing monthly expenses, and planning for future costs can help prevent financial stress later in the school year.

“It’s a good time for us to start setting our financial goals, similar to New Year’s resolutions,” Shepherd said. “Creating those savings goals, paying down debt, holiday spending – things like that. Also, evaluating our insurance, our benefits, and the things that we’re paying for. It’s a good time for us to start teaching our kids financial responsibility with budgeting, comparing prices and needs versus wants.”

One of the first steps Shepherd recommends is reviewing the household budget and creating a checklist of expected school-related expenses. In addition to supplies and clothing, families should consider extracurricular activities, school pictures, field trips, physical exams and any other costs that may come up throughout the year.

“It’s really just about creating a family calendar,” Shepherd said. “You have your school events, sports schedules, fee due dates, and parent-teacher conferences, so you can really drill down for the rest of the school year. We’re starting in August and going through May, giving us a jump start on what we’re doing all throughout that school year, not just right now.”

Shepherd also encourages parents to save money by shopping smarter before heading to the checkout line. Taking inventory of supplies already at home, setting a spending limit and sticking to a shopping list can make a noticeable difference.

“I can’t stress enough about going through your old supplies,” Shepherd said. “My daughter has notebooks that were never even touched. These are things that we’re reusing. We’re not just dumping your old backpack and starting over.”

For families working within a tight budget, Shepherd recommends prioritizing necessities first and delaying purchases that can wait.

“If we are on a tight budget, prioritize what are the must-haves that they need right away,” Shepherd said. “School meals, prescription medication, and transportation come first. Trendy backpacks and designer clothes can wait if we can’t swing that at this point.”

Planning ahead is especially important for parents whose children participate in sports, clubs and other extracurricular activities. Shepherd recommends researching costs before signing up, estimating annual expenses and breaking those costs into manageable monthly savings.

“A lot of schools and leagues offer scholarships, reduced fees, and payment plans,” Shepherd said. “Never hesitate to reach out and see what resources are available, because there are lots of different opportunities for assistance.”

Shepherd also encourages families to review automatic payments before the school year begins. Streaming services, educational apps, gym memberships, and forgotten free trials can quietly chip away at a family’s budget.

“So many people are surprised by how many automatic payments are coming out of their accounts each month,” Shepherd said. “It’s definitely a good time to look through those and ask yourself if they’re bringing any benefit or if they’re something you can get rid of.”

Back-to-school season can also serve as an opportunity to get a head start on holiday savings. Even setting aside a small amount from each paycheck can help ease the financial pressure that often comes with December.

“If you saved just $25 a week starting now, you’d have about $400 by December,” Shepherd said. “If you saved $50 a week, you’d have about $800. Saving a little each paycheck can really help with those holiday expenses.”

Shepherd also reminds families to take advantage of the resources available in their communities. Backpack giveaways, school supply drives, and nonprofit organizations can help families of all income levels prepare for the school year.

“There are so many resources in our area that people don’t even know about,” Shepherd said. “Sometimes, families think they probably don’t qualify, but a lot of these backpack giveaways are open to everyone. If the resources are there and they’ll help ease the burden, take advantage of them.”

Local schools often partner with area nonprofits to discreetly provide free backpacks and basic clothing to families in need. If you are experiencing financial hardship, contact your local school’s social worker directly. For broader community aid, call Indiana 211 or use the Indiana 211 Service Directory to locate nearby family aid and supply.

In addition to helping families prepare financially, Purdue Federal is committed to teaching financial literacy to young people through its Youth Savings Match Program and financial wellness outreach. The credit union matches initial deposits into new youth savings accounts up to $50 and partners with schools, nonprofits and summer camps to teach children about saving, budgeting and making smart financial decisions.

“We spend a lot of time with youth in our area all throughout the year,” Shepherd said. “A lot of kids aren’t getting that education at home, so it’s good for us to bring that top of mind for them.”

Whether families are buying calculators or preparing for a season full of sports and activities, Shepherd hopes parents remember that back-to-school shopping isn’t just about supplies.

“We don’t have to only have fresh starts on January 1,” Shepherd said. “Back-to-school season is another opportunity to look over our family budget, see what we’re doing, what we can cut out and set ourselves up for success.”

Families can also refer to the Indiana Free School Supplies resource to help out with their back-to-school shopping this year.

To learn more about Purdue Federal Credit Union’s financial wellness programs, Youth Savings Match Program and other resources designed to help families build strong financial habits, visit the Purdue Federal Credit Union website at www.purduefed.com.