Budgeting Tips For Heading Back To School
For retailers back to school shopping is the second biggest selling season of the year.
The National Retail Federation is forcasting total spending on back to school items will reach seventy five billions dollars-- up three precent from last year-- and certified public accountant chris proter says the month of august is when most of this spending is happens.
Certified Public Accountant Chris Porter said whether your kids are headed to college or kindergarten, don't be afraid to be a cheapskate.
"It's amazing how much money you can save by clipping the coupons, going to the dollar store or the thrift store, or swapping close with another mom, a little bit of an effort and you're saving hundreds of dollars," said Porter.
He said even when it comes to the big ticket items like a laptop it is ok to go with the $300 version instead of the $800 one.
Being a cheapskate on textbooks is a way to save hundreds every semester.
"If your son or daughter buys all of their textbooks from the university store they're going to be spending $100 per book, but if you buy them online or get digital versions you can save hundreds of dollars a year," said Porter.
He also said to teach your kids the financial basics before they go back to high school or college.
"You should not assume that you're 18-year-old knows how to write a check or knows how to make a deposit or knows the basics of putting together a budget each month, so it's great to sit down with them before leaving for college and talk through the financial basics."
He suggested parents become aware of all of the opportunities there are to save on taxes when it comes to education.
"The American Opportunity Credit, if you qualify it can basically refunded dollar for dollar of the first $2000 that you spend, books and other school supplies can qualify for that $2000 tax credit."
So parents need to save their receipts on books and laptops now incase they want to deduct those items later.