Back to school planning tips 2012
Wed, 1 Feb 2012
Back to school planning tips 2012
As children head back
to school after the summer holidays many parents across Australia can breathe a
sigh of relief. However it’s not always
as simple as shuffling them out the front door and waving goodbye.
Parents might feel like they are just recovering from the cost of Christmas, so
the expenses involved with the return to school can seem overwhelming.
However some simple planning can help to reduce the cost pressures of sending
the kids back to school.
School fees
After a mortgage, education costs can be one of the family’s biggest expenses,
so it pays to plan carefully. Some
families choose to use a dedicated education savings plan, managed fund or a
high-interest savings account to prepare for the costs of school and/or
tertiary education.
By making regular deposits into the savings tool of your choice, it can help spread
the cost of education and also earn some interest.
When it comes to private education, there are often discounts for paying school
fees in full rather than in instalments. If manageable, this could save parents a
considerable amount. Alternatively, many
schools have a direct debit system where fees are paid regularly and can easily
be managed as part if the family budget.
Take advantage of any family and childcare benefits available to you, such as
the Education Tax Refund (www.educationtaxrefund.gov.au) if eligible. This benefit offers up to 50 per cent back on
a range of children’s education expenses, now including uniforms.
Education expenses
When budgeting for education costs for the year, it can help to make a list of
all the expected expenses. While fees,
uniforms, shoes and stationery are the obvious ones, don’t forget school camps
and excursions, music lessons, fees for sporting activities and different sport
uniforms, internet access and computers.
Keep a list of all major events and expenses during the year so you can set
aside money and won’t be hit with unexpected last-minute bills.
The cost of text books and stationery can be reduced if you shop around. Many text books are available new or
second-hand at reduced prices from online sellers. While many schools also have sales at the end
of each year for students to buy and sell used books.
Children can re-use any of last year’s items from the stationery list if they
are still in good condition, such as scissors, pencil cases, flash drives and
calculators.
For items you need to buy, try discount stores. Most chain stores have school stationery sales
in January where you can also pick up cheap school bags, lunch boxes and other
necessities.
Remember to name all the children’s items to reduce the risk of them being lost
and having to be replaced.
Lunches
There are many small daily cost reductions to consider that add up to
significant savings over the year. An
obvious money saver is sending a packed lunch to school instead of giving the
kids lunch money. While it can be easy
for busy parents to give their children money for the canteen, setting aside a
small amount of time to prepare a healthy and filling lunch will end up costing
far less over the year.
Pocket money
The start of a new school year is often the time when families review pocket
money. How much a parent gives can
depends on the age of the child, what they are expected to do to earn it, and
how much disposable income you want them to have access to.
Many teenagers are “paid” for doing household chores such as mowing lawns or
washing the car. This money can be paid
directly into a low-fee savings account so the children are encouraged to save.
While you need to factor pocket money in when managing your household budget,
the financial lessons children can learn ensure it can be a valuable exercise
for everyone Involved.
By following these tips you can ensure you don’t break the bank when the kids
go back to school. You could even go to
the head of the class in terms of future planning.
Adrian Bernard is an Authorised
Representative of AMP Financial Planning Pty Ltd, ABN 89 051 208 327, AFS
Licence No. 232706.
Any advice given is general only and has not taken into account your objectives,
financial situation or needs. Because of
this, before acting on any advice, you should consult a financial planner to
consider how appropriate the advice is to your objectives, financial situation and
needs.
Tags: Back To School Budgeting
