Parenting Pointers: Back-to-School Shopping Teachable Moments About Money

With back-to-school season upon us, instead of just looking for ways to save at the checkout, let’s turn shopping this year into teachable personal finance lessons for kids. The American Institute of CPAs National CPA Financial Literacy Commission has put together a list of 4 teachable back-to-school shopping moments for parents to do just that:

• Plan Ahead: Back-to-school shopping can very easily turn into a very large expenditure. Work with your child to think about what you’ll need and create a list; prioritize between “need to have” and “nice to have” and remember to check the list together as you shop. This is a good exercise in the first step for personal budgeting and will help assure that you don’t miss anything important or go home with a cart full of stuff that you don’t need.

• Shop Around Before You Go:  Once you’ve created a list of what you need, before you even set foot in a store, sit down together at a computer and take the time to shop around online for the best deals. This will help form a habit that will come in handy later. Now you’ll know if the store is offering a good deal or not, and this can help you decide whether to purchase online after your shipping expedition. Also, some stores will price match what you found online, so don’t forget to ask.

• No Expiration Date:  Many people buy “this year’s model” of something because what they have is “so last year.” Some things, like backpacks, may be in perfectly good shape and can serve again, leaving money in your budget for something else you need and don’t already have. Forming the habit of considering what you have in inventory will save you money. When presented with something that is more expensive than normal, the parent can say, if we don't buy that real expensive item we could get 2 things instead of just that 1 thing. Having the child involved in these decisions helps to convey value and how to spend wisely.

• Be Aware & Beware Impulse Buys:  Stores love to place impulse items, like knick-knacks, on your way to the checkout when you already have a cartful and may be thinking “this is cute, what’s a few dollars more.”  If you didn’t set out to buy it and it’s not on your list - not even the “nice to have” part of it - think about whether it’s a good use of your money. Here’s a simple test: would you have made a trip to the store to buy just this item? Here’s another: how many hours did you work in that summer job that will now go to pay for the item that caught your eye?

EXTRA TIP: By shopping with cash instead of credit and sharing that experience, parents can visually illustrate the amount of money that goes into the shopping decision making.