Consumers are in the midst of one of the most important shopping periods of the year as they stock up on back-to-school items. The National Retail Federation (NRF) says its research indicates shoppers have been in the mood to get a jumpstart on their purchases.
The NRF predicts an unparalleled $41.5 billion will be spent, up from last year’s $36.9 billion. Leading the expected increase: electronics. Laptops, tablets and calculators account for $15.2 billion of the money spent. The Better Business Bureau (BBB) offers its advice for Kansas residents who are being pulled into the spending vortex that is the annual back-to-school shopping frenzy.
First and foremost
Setting a budget is easy to do – and vital if you want to avoid financial headaches down the road. Here’s how:
• Know what comes in. Figure out your monthly income after taxes.
• Know what goes out. Calculate your monthly spending. Do it digitally with an app or simply with pencil and paper. Among the online tools that can help is the FTC’s budget worksheet. Just do a search for it. It helpfully gives you the categories to include, some of which may have slipped your mind.
• Know the formula. The “50/30/20 rule” means you should use 50% of your income for needs, 30% for wants, and 20% for debt or savings.
Try not to fudge. Stick to your budget when shopping and avoid trouble down the road.
Timing matters
Some items need to be snapped up quickly due to their popularity, and others can wait a month or so. Timing tips:
• Survey indications are that many are planning to shop early. If you have specific, popular items on your list and product availability is important to you, go quickly to get them, especially if you want the best price.
• In-store traffic is likely to be steady, so don’t worry about what time of week you plan to head out.
• Consider whether some items can be put off. A month or so can bring price reductions that can be significant. Prices go way down during Labor Day sales, for instance.
Other ways to save
There are plenty of tactics that smart shoppers can use to make the most of their back-to-school shopping dollars. BBB’s recommendations:
• Check throughout your home for items you may already have.
• Garage sales can save you huge amounts of money. Check them yourself or give a list to a garage-sale frequenter. Thrift stores are similarly useful.
• Network as much as possible. Your friends with older children may have just what you need.
• Contact stores ahead of time to see if your desired items are in stock.
• Research before buying expensive tech. Read online reviews to compare.
• Use bbb.org to check on a business’ record and reviews.
• Got a favorite store? Look for their coupons and sign up for email alerts.
• Watch for fake websites online. You may not really be at a trusted retailer’s site since they are easy to fake.
• Pay with a credit card whenever you can to ease settlement of disputes.
• Beware of online ads that look too good to be true. They probably are.
Back-to-school shopping need not be a budget buster. BBB wants to help. For answers to other shopping concerns, contact BBB at (800) 856-2417 or visit our website at BBB.org.
