Back to School: Plan Your Budget

Back to school means expenses! Clothes, shoes, and school supplies can drain a budget quickly. According to The National Retail Federation, the average family with school-aged children spends $606 on back-to-school items--clothes, shoes, supplies, and electronics--each year. It’s no wonder setting a budget is essential for all parents with school-bound youngsters.

To avoid falling into debt at back-to-school time, plan ahead for how much you want to spend. You also may want to budget for the changing technology of school supplies. More classrooms are using computers and computer-related study materials. And with many electronics now somewhat affordable to most families, classrooms may be requiring or recommending tech-smart supplies and materials.

Also, don’t forget about doctor checkups, school fees, and athletics or other extracurricular fees, which often are overlooked when setting a back-to-school budget.

Cleaning house before school starts back?

Here's some great advice on how long to keep important documents.

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Stay Home, Have a Blast

Gas prices and other budget busters have many families plotting new ways to get away from it all--by staying at home for a "staycation." You can find lots of local resources, many free or at low cost, to make this kind of event memorable.

* Visit your library. You can get free or very cheap DVD rentals. Some libraries have museum passes that give you no-cost admission to many area museums and attractions.

* Go straight to the source--almost all museums have free days or partial days. Find out when they are and arrange your visit around those days. Check out the zoo and children's museum for more information on what days you can go for the least amount of money.

* With several local colleges nearby, find out about free performances by music department faculty or students.

* Treat your hometown like a vacation destination; check its Web site and the local visitors' center to find neighborhood festivals and art fairs. Check out local factories and ask if they offer tours; a plant tour can be fascinating.

* Ask yourself, what would I show a visiting friend? You'll discover things you never knew about your community when you approach it this way.

* Make it a game to see how much fun you can have without spending a nickel. Have your kids compete to come up with ideas.

Your staycation may turn out to be so much fun that you'll repeat it even when finances take an upturn.

What can you do with a tax refund?

If you’re lucky enough to be getting a tax refund this year, careful planning could help you do a lot.

• Pare debt
  Make a credit card payment, more than the usual monthly payment.
  Pay off part of a student loan.
• Pay bills
  Pay part of your property tax bill.
  Ante up for school supplies and wardrobes.
• Boost savings
  Contribute now to your IRA (if you have earned income); don’t wait until the tax-filing deadline.
  Add it to your sunny day fund for future recreation.
• Have fun
  Enjoy a long weekend at a restful site.
  Enroll in a class to learn a skill you’ve been curious about.
• Do good
  Improve your home with fresh paint in a neglected room.
  Donate to a good cause; get a receipt so you can take the charitable deduction if you itemize deductions on your tax return.
  
  

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Cut Holiday Expenses, No Scrooge Required

There are plenty of ways to have fun, create lasting memories, and avoid the "Bah, humbug!" approach to the coming holiday season, despite the economic downturn and strain on family budgets.

Consider making a few changes this year that are kinder to your budget and that free up valuable time for family and fun:

* Create coupons. If you ask Grandma whether she'd like another expensive sweater or a coupon from a grandchild to make cookies together, guess which one she'd likely choose! Handmade coupons for adult children or grandchildren to give elderly relatives are welcome treats. Examples: running errands, spending an afternoon in the park, cooking a meal together, shoveling the sidewalk, raking leaves, washing the car, or planting flowers.

* Give homemade items. The time you spend making the item shows how much you really care about the receiver. If Grandpa has an old, unused pitchfork in the barn, use a staple gun to attach greenery, use hot-glue to attach pine cones and decorations, then wrap a string of holiday lights around it. He'll make sure that decoration gets used every year! If you know how to knit, make some handmade potholders for the special cooks in your family and in your neighborhood. If your forte is baking, give holiday tins of homemade cookies to friends, the letter carrier, your hairdresser, and newspaper deliverer.

* Use natural decorations. Gather leaves, pine cones, low-hanging branches from pine trees, or other "gifts" from nature and use them in centerpieces and mantel decorations. Here's a tip for pine cones: Place them in a single layer on a cookie sheet and bake them for 15 to 20 minutes at 200 degrees to rid them of bugs or spiders.

* Wrap it creatively. Use the Sunday comics as a free substitute for expensive wrapping paper. Purchase a roll of inexpensive meatpacking paper from the local butcher and have young children draw and color on the paper, which can be cut to fit any size package. Or, make your own gift wrap--there are countless resources and ideas on the Internet to get you started.

* Make it memorable. Rather than trying to make--and pay for--the entire meal and feed the whole family, organize a potluck that allows everyone to contribute and show off their culinary talents, and share recipes. Ask guests to string popcorn and cranberry chains as decoration for the holiday tree. Bring out photos of past holiday gatherings--that's sure to generate a lot of stories and laughter.

Finally, ask everyone to share their favorite holiday memories. Chances are, the majority of responses will be ones that don't involve spending any money at all. And that's truly what the holidays are meant to be--engaging in special traditions and creating lasting memories. No Scrooge required.