We all know how raising kids can be costly. They are expensive little buggers! Many of the expenses in raising kids are tied to their education. To help our kids succeed academically we need to, as parents, ensure that our finances are in order. When it comes to our kids, sometimes it’s hard to say “no” when they need or want certain things. Budgeting for these school expenses can help us provide for our kids.
Disclaimer: I am not a financial planner or expert. All information in the post is my opinion and should not be used as financial advice. This is based solely on my experiences. Any action you take based on the recommendations from this blog is at your discretion.
How to Budget for School Expenses
Budgeting for school expenses is one great way to control costs and to ensure that you can afford these expenses. Start budgeting when kids start school for the first time till the time they reach college. Map out all the expenses that are needed throughout the school year and divide the expenses into 2 categories – fixed and variable expenses. Determine or estimate the cost of each expense.
Fixed School Expenses
These expenses are at a set fee/amount. Examples of fixed expenses: tuition, bus fees, sports fees, in-school supervision fees, etc.
Variable School Expenses
Variable expenses are those costs that are not a set fee. Examples of variable expenses: school clothes, school supplies, unexpected school costs (field trips, library fines etc) and lunch money.
Dividing the expenses into these 2 categories will help you pinpoint where overspending can occur – especially for the variable expenses. With the value from 2 lists come up with a budget for these school expenses for the upcoming school year. The trick is to make sure that the amount for this school expense fits into your family budget. If you had overestimated for the school expense budget – review your 2 lists to see how you can modify it to make it fit.
Give Every Dollar a Job
Once you have a budget for the school expenses, break it down to a monthly cost. Every month, automate the transfer of this monthly cost into the fixed and variable school expense fund. Then when something needs to be paid than deduct the amount from this fund. This method of money organization will help you control costs and keep you on budget.
This is further explained here: Give every dollar a job
It is so easy to head to the mall and spend a lot of money on the kids (i.e. for school clothes, supplies). But if you understand that you only have so much in the “variable fund” then it is easier to control spending. Enrolling the kids for extracurricular activities is another expense that parents can go overboard with. Again, if you know the amount that you can afford – you will make sure these activities are worth your kids’ time, your time and money.
Other back to school expenses tips
Don’t forget to budget for a future education fund for post-secondary school. Contribute to the kids’ RESP/529 Plan.
Remember that budgets are fluid and adaptable. Modify your budget when circumstances change (i.e. dropping or adding a course).
School expenses can be expensive and even more so when for families with multiple kids. In order to control costs and to ensure that you can afford these expenses, a budget is needed. Once a budget is in place, organize the school expense funds by “giving every dollar a job”. Budgeting and organizing the school expenses will help parents provide for their children academically.
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