How Parents Can Save Money on Schooling All Year Long and Beyond

Much is made, and rightfully so, about the time of year that is late July and most of August in the form of back to school hype, pomp and circumstance, all leading to back to school shopping.

Parents clamor for the backpacks, pencils and clothing, among many other items, at a record and feverish pace.

In some cases, back to school spending can range from a few hundred dollars to a few thousand.

The National Retail Federation suggested in a recent estimation that the average back to school shopping bill is around $685 for the 2018 shopping year, with most of that going toward clothing ($237), followed by electronics and then shoes at $187 and $139, respectively.^[1]

Another telling statistic credited to that same source also said that while 62 percent of the parents polled have a back to school budget, roughly 49 percent of them end up overspending.

That is a critical part of this discussion simply because for parents, back to school shopping is hardly the only expense they’ll incur as part of the entirety that is the school year.

From activities to sports to just about anything else a grade schooler or college student needs from late August through early June is something parents and partners alike have to account for as those nine months could easily destroy any budget.

What’s interesting to note, even greater than just the upcoming school year, is how much parents have to spend on a child for their education, grades K-12 and secondary education into college.

Hong Kong ranks as the most cost using those parameters, with parents spending more than $130,000 in that time period; the United States is fourth on that list at just under $60,000 (roughly $58,000).^[2]

That cost is comprised of a number of factors, from textbooks to travel, supplies and accommodations and even the wide array of activities a student can participate in that, while sponsored by the school, are costly with uniforms, equipment and other items you need as part of that club or team.

Another study called out $10,000 as the amount of money a parent will spend solely on activities, alone; Roughly 37 percent of families as part of this survey said they’ll spend $1,000 per child on in-school and after-school programs, with 20 percent saying it will be closer to $2,000 per child.^[3]

To think that, either in the smaller scope of a school year, or the broad spectrum that is kindergarten through college, that a parent or household has to find a way to come up with $60,000 is both surprisingly in one breath but not so much in another.

You have to consider the propensity of kids to want to do more than school work as part of this, along with the camaraderie and team building that sports, activities and other clubs bring to the lives of the kids involved in them.

Various studies have been done in the last 20 years that show a direct correlation between sports and better grades and performance in school, something parents have to consider when the financial piece is brought into the equation.

Parents often are quick to acknowledge this information as wanting their kids to succeed and become “well-rounded” socially and academically, and often sports or clubs bridge that gap.

The American College of Sports Medicine, in a study done and lead by James Pivarnik, saw middle-school kids doing better on fitness tests and thus doing better in school. The 317 students involved, using the fittest person as the gauge, scored 30 percent higher on testing, with less-fit students found themselves at 13 to 20 percent lower.^[4]

This is not a call to action for physical activity but this does show sports and being active as part of the entire scope of the school year is just a part of why parents want the best for their kids, to the tune of $60,000.

Beyond just activities in the form of physical exertion, nearly 60 percent of kids ages 6 to 17 participate in some form of extracurricular activities, with 35 percent in sports, and clubs and music or dance lessons in the 29 percent range.^[5]

Moving beyond grade school, middle school and high school, the other part of ongoing education costs follow parents who have college kids, and the wants and needs that are associated with that, mostly in the form of housing, transportation and books every semester.

That adds up, too.

So what is a parent to do? Here’s what you can do to combat these costs, so the extra curricular activities are costing you extra dollars you should be saving:

Expense Report: Make sacrifices around the household to save extra money

So you can’t help but understand parents wanting their kids to have it all, and if that’s the mindset you’ll take during the school year, before school starts or even when they’re sent off to college, then so be it.

Parents spend 18 (or more) years making small (and large) sacrifices so their kids can have certain things, whether you’re talking about school-related things or outside of the realm of the classroom and activities.

That means you’ll look high and low within your budget and start finding places to cut expenses so that extra income can be used toward the interests of the kids.

One example is the propensity of the busy working adult to spend too much money eating out at restaurants, whether that’s a quick drive-thru window lunch or a dinner on the go.

The average person has 18 meals outside of the house, with $232 per month on those meals with a cost of about $12.75 per person.^[6]

That $232 per month, even if you cut it in half gives you $120 basically to play with as far as what the kids might need.

Every year, approximately 20 percent of parents spend $1,000 for activities during the school year so cutting your take-out budget and spending in half covers that cost.^[7]

Truthfully, that logic can escape even the most financially savvy parent if convenience supersedes thinking through the notion of how a small value meal has real value beyond the meal itself.

For college kids, books alone cost $1,168 per year, but again that matches up nicely with the $120 extra you have from cutting out dining out: $1,168 for books versus the $1,440 you’re saving in food costs.^[8]

Go Free or used: School expenses for kids don’t always have to include hefty price tag

Sometimes the word “used” or “free” conjure up more than just a mildly interpretive negative connotation for parents or kids.

The idea that a college student has to partake in learning from a “used” textbook is shear blasphemy, right? How about the online sites that offer “rentals” as well for those same textbooks? Surely, that can’t be good.

And from an activities perspective, let’s talk about recreational centers or other free programs kids can enjoy, gain the same acceptance and social aptitude, minus the heavy price tag.

These are all options that parents can seek out as part of trying to appease and save in that same fell swoop.

The idea of using used textbooks, selling yours too, along with renting, has started to see signs of popularity and shouldn’t be scoffed at when you consider the savings.

Spending on textbooks was down to $579 per year in 2016 and 2017 school year versus $602 the previous year, and $122 less than it cost for books in 2007 and 2008 school year.^[9]

As far as the kids and the after-school activities and cost associated with them, you not only can consider free programs, but also if you’re buying equipment, for example, why not look for used equipment that suffices the same role as the brand new and much pricier alternative?

Not for profit organizations like the YMCA offer aid to those who need it, in addition to the 4,000 Boys and Girls Clubs that charge $5 per year for some.^[10]

Programs vary in cost from one county to the next depending on where you live, with costs that are equally affordable, much less than perhaps something being offered by the school itself.

Part-time job, Full-time benefits: Use extra income just for extra schooling costs

No one really jumps at the chance to get a part-time job or look for additional hours to add to the 40 or more you might be working at this very moment.

But adding income isn’t just about working more, either, but instead just as a mentality or means of thinking through how you can make extra money to fund expenses from dance class to dorm room costs.

When it comes to selling on eBay or Amazon, for example, the dollar amounts are lucrative.

Roughly 34 percent of eBay sellers make under $10,000 per year, while nine percent on Amazon fall into that category.^[11]

Even if you’re looking to this as a part-time endeavor, it can be worth dabbling just to make a few hundred dollars every few months, and the selling piece of it can include finding things around the house to sell or making your part-time job finding items to sell at a profit.

The average base pay for a traditional part-time salary is $24,500 per year.^[12]

That number is about half of what you’ll need for the entire time your child is in school, in relationship to their activities, clubs and sports they’ll participate in, not to mention other expenses such as supplies.

Working more isn’t always an option, but if you can find a way to make it creative or convenient, chances are you’ll be in much better shape financially when other expenses related to school are needed.

As much as parents want their kids to do and participate in as much as possible, you can’t fault those who put a cap on how busy their kids are. For college-aged students and their parents potentially footing the bill, you also might see parents start to encourage car pooling, used/online textbooks and any other means to save money during their university days.

This isn’t so much about parents shorting their kids as part of the school year or the entire time they’re in some sort of schooling, but rather trying to find that balance to not only take care of back to school shopping and tuition, but also the other incidental expenses that go along with school, in general.

Parent and students both equally understand that after-school activities or in-school clubs not only help social skills but give kids that sense of belonging that is so important and also prime high school kids for college, when activities and what you do outside the classroom is scrutinized.

The balance between spending, saving and the satisfying the needs of your child is a tough act but one parents have to be smart and prudent about, while making tough decisions that preserve their financial outlook, without diminishing the one your children have for themselves.