Be Smart and Save Money: 5 Tips for Back to School Shopping

First and foremost, when you’re shopping for back to school supplies, make sure you know what you have. Go through your kids’ rooms and take inventory of their clothing and any supplies they might have laying around. Clean out old backpacks and school bags. Take stock of supplies in your home office, in your kitchen drawers, in the hall closet. This way, you won’t continue to buy a protractor every year when you have a forgotten pile of them tucked away somewhere in your house.

Once you have a list of what you already have, you’ll be more focused on what you need. Using your inventory list, create a new list of items your kids absolutely need for the upcoming school year. Make copies of your finalized need list and give them to everyone in your family. If you and your family are tech-savvy, consider creating a shared google doc, or something of the like, so that you and your children can edit it together. This way, there should be no confusion on what’s been purchased and what you still need to buy.

Start buying early and plan your time

Planning ahead is really the best way to save money on back to school shopping. If you start looking at supplies and prices early, you’ll be better equipped to recognize and take advantage of the best sale prices.

Also, if you make a plan ahead of time, deciding which stores you and your kids will need to visit to get their supplies, you can track those stores easily by subscribing to their Facebook pages or Twitter feeds. Often, stores will post reminders of sales or even surprise offers to their subscribers. Following these stores early and often will help you get the most for your money.

Another benefit to starting your shopping early is the option of shopping online. Many times, you can find great deals shopping on Amazon, Overstock, even eBay or Craigslist. And, some stores offer online specific sales with better deals than you can find in store. So, don’t wait until the last week of summer to scramble and get your kids their supplies! Give yourself time to browse the internet too, and leave plenty of time for the great deals you find to be shipped to you.

Shop Tax Free Weekend and End of Summer Sales (but beware…)

Shopping on tax free weekend and during end of summer sales can be great ways to save money on back to school supplies. Parents should absolutely be aware of when tax free shopping occurs, and they should keep track of when their (and their kids’) favorite stores hold their end of summer sales.

However, it’s also a good idea to be critical of these seemingly fabulous sales. I worked at Old Navy throughout my high school and college years, so I have firsthand knowledge of some of the sneakier sides to summer sales. For example, sometimes stores will mark their prices up to full value during tax-free weekends, and other stores will actually run better sales before and after the big advertised “summer sale.” So be wary of the sales you see, and take the extra time to determine whether you’re getting the best deal. Don’t be fooled by the “tax-free” excitement of saving 7% on a shirt that costs $25 when it will be 50% off during next week’s less advertised sale.

Avoid unnecessaries and compromise with your kids

Fancy pencil pouches? Your kid has a backpack… that’s a pencil pouch right there. Cute, trendy, or graphic covered binders that cost 4x the amount of a regular, plain, binder? Who needs it? Chances are, your kid is going to either stuff some papers in there to keep for later, draw on it with markers or pens, or never take it out of his/her locker. Cutting down on the unnecessary items your kid wants but doesn’t need is a surefire way to save money.

But, if your son really wants the expensive backpack with a built in organizer, a hard-case pocket for his laptop, and a cool design on the front, compromise with him. If your daughter will not stop asking for the Vera Wang lunch bag she saw online the other day, compromise with her. Strike up a deal that they have to pay the difference between the backpack or lunch bag you want to buy for them and the one they want. They could cover this difference using saved up holiday money, allowance money, or by doing extra chores.

Be wary of teacher required lists

This last tip is a little variable, but here’s a secret from someone who’s taught high school for the past 5 years: Take our “required” school supply lists with a grain of salt. Again, this is the experience of just one teacher, but honestly, sometimes we don’t even know what our students will need for the entire year. My best advice is to buy the basics: pens, pencils, paper. Your child will always need something to write with and something to write on, but hold off on any excess- colored pencils, glue sticks, a binder for each class, rulers, etc.- until you know exactly what they’ll be using on a day-to-day basis

 

How To Talk Money Management With Your Kids

The money talk — not as scary as the birds and bees, but still a lot to think about. We get it and so do other parents. In fact, 49% of parents say they’re not sure how to explain money to their child.[1] Enter: Spring Break. It’s the perfect time to open the conversation, starting with budgeting. 

EXPLAIN WHY BUDGETING IS IMPORTANT

If you’re like 67%[2] of Americans, you keep a budget — nice! Time to get your kids on board. But how? You could start off by explaining why a budget matters, because chances are they’ll ask.

Conversation Starter: “When you make a budget, you know just what you’re spending, and how much you need to save for things you want, like those AirPods.”

EXPLAIN COMMON BUDGETING TERMS

Fixed Expenses and Variable Expenses — ring a bell? Maybe, maybe not. Either way, they’re important words to teach your kids about budgeting. Break it down into Spring Break terms, and they’ll get it.

Conversation Starter: “A Fixed Expense is one that doesn’t change. Like, our plane ticket. A variable Expense is one that does change. Like, meals. It can go up or down, depending on where we eat.”

EXPLAIN WHY SAVING MONEY IS IMPORTANT

Budgeting for Spring Break is one thing — saving for it is another. Instead of simply handing them money (and hoping they stash it away), show them the importance of earning and saving.

Conversation Starter: “Saving money lets you buy things that you might not have enough money for right now. When you add a little bit of money to savings over time, it helps make future purchases possible.” Tip: Name something you’re saving for, and how you plan on reaching your goal.

GIVE THEM THE GREENLIGHT

After you have the money talk with your kids (you’ve got this!), think about getting them a debit card — like Greenlight. Unlike a credit card, they can only spend what’s on it. (More on the differences between credit and debit here.) The best part: debit cards like Greenlight empower your kids to make smart money decisions, long after Spring Break ends.

With the Greenlight debit card and app, your kids can:

  • Set Savings Goals. Even staycations cost money. Teach them to save for it.
  • Learn to Make Trade-offs. Keychain or shark-tooth necklace? It’s their call.
  • Earn Allowance Through Chores. Greenlight kids who earn allowance save 26% more.

As they start learning about money management, you’ll be right there with them. The Greenlight app lets you:

  • Control Access to ATM’s. Are they taking too much out? Set limits.
  • Choose Stores. You decide where they can and can’t spend.
  • Get Real-Time Notifications and Monitor Their Spend Levels. Perfect if they’re vacationing without you.

GET SET FOR SPRING BREAK

Join Greenlight today and help your kids get a head start on budgeting for the break — and for life! Sign Up Now

[1] Investopedia.com [2] Debt.com

Why kids should understand the difference between debit and credit cards

Today, it’s not surprising that Americans have shifted from the traditional use of cash to more modern methods of payment like debit and credit cards. According to Fundera, 70% of consumers prefer using cards as a form of payment and 54% prefer using debit cards. 

Debit and credit cards provide convenience, more security than cash and are accepted nearly everywhere. It’s safe to say that while cash may not be going away, teaching children the basics of what credit and debit cards are now will prepare them to use cards responsibly in the future. 

Prepare them for the reality of credit cards

A credit card is a form of payment issued by a bank or business that allows the holder to purchase things on credit. When making purchases with a credit card, you promise to pay back the money you owe (plus any interest!) at a later date. 

When you carry a balance over month-to-month, the lender charges you interest on top of the amount you owe. Carried balances and interest can add up quickly and many families find themselves in a position where it’s tough to pay credit cards off.

In fact, 41% of America’s households have credit card debt. It’s important to introduce your kids to the concept of credit cards while they’re still in the nest – that way, they are prepared to carry one later in life. 

When it comes to teaching your kids, we recommend starting their money management adventures with a debit card. This protects them from overspending because they can spend only the money they have, and allows them to build healthy habits early before they enter the world of credit.

Teach them to manage money with a debit card

Debit cards provide more security than cash and fewer worries about debt than a credit card. A debit card is a form of payment that deducts money directly from a bank account to pay for a purchase. With debit cards, owners can have easy access to their available funds and can often also put money aside for something special using a savings account. 

Kids need to learn how to manage a debit card just like they need to learn how to drive. Whether your child runs their own lemonade stand during the summer, starts their first job or gets an allowance, a debit card can help kids learn to manage balances, save money, and more!

How Greenlight helps

Greenlight helps kids learn how to manage money and form strong healthy habits that will serve them as adults. According to Greenlight CEO Tim Sheehan, the reason Greenlight is a debit card is to “help kids learn to effectively manage the money they’ve earned, as opposed to spending money they may not have.”

Parents are the primary account holders and have the controls to choose where their children can use the card, manage chores and allowances, set parent-paid interest rates on savings, and more. Kids are able to monitor their balances, create saving goals, and learn how to make financially-smart decisions in a safe environment with their parents’ guidance. 

How parents send money using the Greenlight debit card.

Mistakes are just mistakes

With Greenlight, there is no chance for a child to overdraft or overspend since we decline any purchases greater than the child’s available balance. Mistakes are just mistakes! Parents get alerts when kids try to spend more than they have to spark conversations about budgeting and wise spending. 

Parents are able to allocate funds to their child’s “Spend Anywhere” account or choose specific stores where kids can spend and how much they can spend. They can even help their child create a savings goal and contribute money to meet that special goal. 

Ready to teach your child how to manage money responsibly?

Join Greenlight today to start adventures in personal finance with your kids!