It is that amazing time of the year again. Each year, we all enter this phase of transition from summer to fall. As the leaves change, so does our routine. Here comes the back to school rush. Throughout the country, the months of August and September play a seminal role in getting the school year started. With this transition comes the expenses of new school gear and traditional school supplies. Do not forget about the disruption to your typical schedule and the added traffic of school buses and frantic parents trying to get their children to school. Yes, back to school here we come. But do not allow the new school year to affect your financial goals.
The Relief And Stress Of Back To School
For parents, it is that time of the year where life becomes less stressful in some respects, and more stressful in others. In one aspect, the kids are out of the house (covid permitting) and you know where they are. They are being housed in a school for at least about 7hrs. The kids are also being kept on the education treadmill of learning and developing new social skills.
On the stressful side of back to school are the expenses of extracurricular activities and the friends that that your child will make and who will have influence over time on their lives while you are not there. For their friends, you as a parent has to establish your home, what is expected of your children and that should guide them. On the expense side, it is also your choice.
The expense associated with your child’s activities is a choice that you are making. You are the parent, it is not your child’s choice, it is yours. If you sign your child up for an expensive sport, do not complain, it is your choice. If you have to leave work early to attend an event, again, it is your choice. When you are making a decision to live within your means, save, invest and grow financially, your kids are apart of your house and how you allocate funds on their behave will significantly influence if you will achieve your financial goals.
Just Starting Out
From kindergarten to 12th grade, you as the parent are generally financially responsible. After that point, the guide rails are gradually taken off. For those with kids going into kindergarten, on a financial level it may be your first introduction to the early school supplies which at this point may include clothes, shoes, and electronics. But for many on the financial front, this is a blessing. Gone are the days of paying for private pre K which can cost more than $20,000 per year. Now you may have public schools to contend with that are free if you are not continuing with private education.
This is not the time to find a place to spend the funds that you had previously used for pre-k. Now is the time to find new investment opportunities, save and build wealth. This can be in the form of investing in the stock market, saving to fully fund your emergency fund or continuing to use the money for your child by having a 529 plan or something similar. Now is the time to save, because if your child pursue higher education, you will pay one way or the other.
If you are continuing with private education, then you will be spending more as you move from pre K to kindergarten. It is not uncommon for such cost to come close to or above $30,000 per year. If you have made the decision to enter private school, it is a choice that while expensive it is one that can be beneficial to your child based on where you are located. However, be mindful of the expense as it accumulates over years.
Returning To School
If you have a child who is returning to school, they will likely be thrilled. Thrilled because they are heading back to school after spending the summer with you. Now they get to jump back into the routine and to see their friends. By going back to school, they are essentially returning back to their lives. For children in this category, back to school is something that they have been looking forward to all summer.
But even for you, it is important to keep an eye on the expenses. Again, if your child is returning to private school, ensure that the expense fits within your plan. If your child is returning to public school, be mindful of the environment and opportunities that they are returning to. Whether public or private, pay particular attention to the extracurricular activities that your child will be involved with and the related cost. You want a developed adult at the end of the journey, but not a situation that will put you in financial difficulties for the future.
What ever the situation that you find yourself in this year, do not allow this transition back to school to take you off your financial path. If financial independence is your goal, maintain this goal and live below your means, save, invest and repeat.
Conclusion
It is that amazing time of the year again. Each year, we all enter this phase of transition from summer to fall. As the leaves change, so does our routine. Here comes the back to school rush. Throughout the country, the months of August and September play a seminal role in getting the school year started. With this transition comes the expenses of new school gear and traditional school supplies. Do not forget about the disruption to your typical schedule and the added traffic of school buses and frantic parents trying to get their children to school. Yes, back to school here we come. But do not allow the new school year to affect your financial goals.
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