The summer holidays may be in full swing in much of the UK, but the back-to-school costs will already be a headache for many parents.
Expenses such as uniforms, technology and stationery come to an average of £490 per primary school child and £422 per secondary school child, according to a recent survey by retail specialists Gekko. The back-to-school shop can send parents into debt, with spending put onto credit cards and/or saving pots being emptied. The costs are particularly stressful after the summer holidays, when many families will have already spent hundreds of pounds entertaining the children over the last few weeks.
To help ease the financial pressure and to help you stay within a budget, here are our top tips to help families manage the back-to-school costs and put some money aside too.
Set up a back-to-school fund
We know it’s going to happen and when it’s going to happen, but few people actually put money aside to pay for back-to-school costs. Putting aside a small amount each month could really ease the financial pressure. Put the money into an easy access savings account, but make sure you shop around for the best interest rate. Don’t forget to switch accounts when a bonus interest rate expires – they usually last for the first year of opening the account.
Set a budget
It’s easy to get carried away with back-to-school shopping and let’s face it, the kids will not stop asking. Make a list of everything you need and give yourself a realistic budget. Stick to buying the essentials to avoid overspending and only buy non-essentials if your budget allows it.
Make use of cashback and money-saving apps
Making extra savings on groceries and other essentials can really help with your budget. Buy as much as you can online to take advantage of cashback, such as Topcashback or Quidco, which gives you a percentage of your money back. If you use cashback regularly for all of your everyday purchases, you could save hundreds of pounds every year – an amount you could then put towards paying for back-to-school costs.
Money saving apps such as Beanstalk, Checkoutsmart and Shopmium can also help with grocery costs, which can really eat into household budgets.
Refurbished technology
Technology is probably one of the most expensive items parents end up buying for their children, but whether it’s mobiles, tablets or laptops, you can significantly cut the cost by buying refurbished gadgets. Often these gadgets are just opened returns with broken seals; if that doesn’t bother you then you could slash your technology costs by hundreds of pounds.
Buy second-hand
School uniforms don’t always have to be new. Schools often have second-hand rails and sell items for as little as £1 – check the school’s website for information on its uniform policy and any support available. If the school doesn’t have a second-hand uniform rail, then why not set up a Facebook or Whatsapp group with other parents to buy, sell or swap school-related items?
Check if you’re eligible for support
Many UK families will be eligible for help with costs such as meals, which for some children may be provided for free. Find out what the situation is in your area when it comes to free school meals, as criteria depend on whether you live in England, Wales, Scotland or Northern Ireland.
Similarly, you may also be able to get a grant for uniform costs and help with ‘wraparound’ care (which covers breakfast and after-school clubs).
Plan for the future
Last but not least, it’s easy to forget saving for your children’s future after they leave school. If they choose to go to university, for example, the costs can be considerable. An investment junior ISA is a great way to help build a fund for their future if you can save for a period of at least five years, and ideally 10 years minimum. If your child is still relatively young, then a junior investment ISA would give them the opportunity to maximise the return potential on the stock market. But remember, investments can go up as well as down.
If you put money into a cash junior ISA, always shop around for the best interest rate. Once you put money into a junior ISA, the money then belongs to the child and only they can access it when they are 18.
Beanstalk allows you to manage a junior ISA flexibly and focuses specifically on family investing. Build up a savings pot for your children, earn cashback on shopping and explore the other clever features the app has to offer.
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