Disclaimer: This Inside South Florida segment is sponsored by Credit Karma. All opinions and views are of the advertiser and does not reflect the same of WSFL-TV.
As the fall season approaches, so does the back-to-school shopping season, which can be a significant financial burden for many parents. Courtney Alev, Head of Tax at Credit Karma, recently joined Inside South Florida to share valuable tips on how parents and students can navigate these expenses wisely.
Courtney highlighted that back-to-school shopping is expected to be more expensive this year. According to a recent Intuit Credit Karma survey, 44% of parents are dreading the season due to higher costs, with more than half anticipating they will need to spend more than in previous years. To manage these expenses, Courtney advises:
- Assess and Prioritize: Start by assessing what you already have at home and prioritize what’s truly needed versus what’s wanted. For instance, if your child already has a functional lunch box, it might not be necessary to purchase a new one.
- Create a Budget: Track your spending and set a budget based on what you can afford. Sticking to a budget can help prevent unnecessary expenses.
- Shop Smart: Take advantage of sales, discounts, and consider buying refurbished electronics if needed. Additionally, don’t hesitate to ask your child’s school about available resources, such as community programs that offer free electronics to qualifying students.
For those concerned about taking on debt for back-to-school shopping, Courtney suggests:
- Exhaust Resources: Before resorting to credit cards, explore all available resources, such as second-hand shopping, hand-me-downs, and sticking to your budget.
- Plan for Debt Repayment: If you must use a credit card, create a plan to pay off the debt as quickly as possible. For repayment plans like "buy now, pay later," ensure you make all payments on time and in full.
Shopping for college students can be particularly expensive. Courtney offers these tips:
- Shop Smart for Dorm Essentials: Before buying new items, see what you can bring from home, and consider shopping second-hand for furniture or kitchen appliances.
- Save on Textbooks: Textbooks can be costly, so check if your campus offers a used book program to save money.
Courtney emphasizes the importance of financial preparedness for college students:
- Establish Financial Habits: Start or reinforce healthy financial habits, such as creating a budget and distinguishing between needs and wants.
- Build Credit: Consider applying for a student credit card to build your credit score. Parents can also add their child as an authorized user on their credit card to help them build credit, but should be mindful of how their spending affects their child’s credit score.
For more tools and resources on managing finances, Courtney suggests visiting creditkarma.com or downloading the Credit Karma app. With these tips, parents and students can navigate the back-to-school season with financial confidence and preparedness.
