UF/IFAS
Okeechobee County Extension Service
458 Highway 98 North
Okeechobee, FL 34972-2578
Phone: (863) 763-6469
E- mail: dsclements@ifas.ufl.edu
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Feature
Article - for release the week of
Debbie Clements - Extension Family & Consumer Science Agent
Back to school, not back in debt
Most everyone will notice the big yellow busses are rolling through town this week – a sure sign that local schools are now back in session. Parents will soon get detailed lists of “essential school supplies” from their children’s teachers, and kids will be looking at their classmates for the latest fashions for the new school year.
Many families will feel their family budget is stretched real thin this year, especially with all of the storm-related expenses from this past year. What can be done to help our students get started off on the right foot without breaking the bank?
"Back-to-school
time is one of the major spending promotion times by retailers and credit card
issuers alike," warns Paul Richard
of the San Diego based, award winning, nonprofit Institute
of Consumer Financial Education (ICFE). The ICFE is concerned with
advertising aimed at consumers that promotes indiscriminate credit-based
spending for back-to-school supplies. The ICFE is dedicated to helping
consumers improve their spending, increase their savings and use credit more
wisely.
Because credit cards have the basic message of: SPEND, credit card use in this country continues to increase. So also has the amount of debt carried by cardholders - and the various hidden fees are also rising.
Try these ten spending tips from the ICFE for getting better value when doing your back-to school shopping.
1) Make a list of what is needed by category; i.e. clothing, books, sports equipment, or music etc..
2) Plan ahead. Start watching for store sale flyers, flea markets, garage sales, clearance sales, etc.
3) Establish a spending-plan and make a timetable to purchase the essentials over several weeks or months.
4) Comparison shop with at least five different sources for the best values.
5) Consider not buying all the needed clothing initially - If it all gets worn at once, it may all need replacing at the same time. Spread out these purchases over many weeks. Allow some flexibility so as to take advantage of sales and true bargains.
6) Avoid using credit cards to spend income not yet earned. They are too expensive (users either pay interest or an annual fee, or both, for the convenience). Some credit card issuers routinely promote indiscriminate spending, which so often can result in overspending. Try using a bank debit card that uses money you actually have, and avoid those fees and interest payments.
7) When it comes to trendy items for school clothes or school supplies, encourage children to become independent and not "go-with-the-flow" demanding all of the latest product tie-ins, from the summer's hottest movies, for example. Fads often lose their steam after school starts, often because nearly every other child has them.
8) If there are several children in your home with back to school needs, you may want to consider setting aside money each month of the year for this expense to avoid having to divert money away from other expenses.
9) Use layaway plans for clothing, supplies, etc. whenever possible and practical.
10) Purchase “pre-owned” (used) text books, lab tools and supplies, etc. when possible.
Most consumers who do credit-based spending have become victims to the forces in our society, getting people to spend beyond their incomes. Credit based spending decisions have a far greater negative impact on one's financial future than any investment decision one might ever make. These decisions include how often to eat out (or entertain someone) this week, how much to spend on back-to-school needs, or redecorating a room, updating your wardrobe and especially those unplanned spending trips to the grocery store.
For information about "Mending Spending," monthly budgeting guidelines, and to receive warning labels and sleeves for debit and charge cards, visit the ICFE's Web page at http://icfe.info . The site also includes helpful sections on increasing savings, using credit wisely, plus ideas on how to set up and implement a spending-plan for personal and/or family finances.
We’ve placed more information on our Okeechobee web page, http://okeechobee.ifas.ufl.edu. If you need additional information on using credit wisely, email us at okeechobee@ifas.ufl.edu or call us at 863-763-6469. Local residents can stop by our office at 458 Hwy 98 North in Okeechobee, and for Florida Yard questions visit our Okeechobee County Master Gardeners from 1 to 5 PM on Tuesday afternoons.
-30-
Trade
names, where used, are given for the purpose of providing specific
information. They do not constitute an endorsement or guarantee of products
named, nor does it imply criticism of products not named. The Florida
Cooperative Extension Service - Institute of Food and Agricultural
Sciences is an equal opportunity/affirmative action employer authorized to
provide research, educational information, and other services to individuals
and institutions that function without regard to race, color, sex, age,
handicap, or national origin. Florida
Cooperative
Extension Service / IFAS /
University
of
Florida.
Larry
A. Arrington, Dean Last update: 08/03/2005
. This page is maintained
by Dan Culbert
Paul Richard, Helpful Tips For Organizing Back-To-School Spending. ICFE eNEWS - July 27, 2005.