The National Retail Federation recently released a survey detailing back to school spending for the 2019 school year. Certified Financial Planner Paul Fain, President of Asset Planning Corporation, summarizes how much we are spending this year and the impact on our budgets this week on WBIR.
WITH AREA SCHOOLS AND COLLEGES STARTING THIS MONTH, AMERICAN FAMILIES ARE SPENDING RECORD AMOUNTS!
- According to the NRF, families with children K-12 will spend an average of $670
- Families with college students are expected to spend even more – an average of $977
The survey also revealed that total combined spending for K-12 and college is projected to reach $80.7 billion.
HOW IS THIS SPENDING TYPICALLY ALLOWED?
K-12 spending trends:
$240 Clothing & Accessories
$203 Electronics such as computers, calculators, and phones
$136 Shoes
$117 Supplies such as notebooks, pencils, backpacks, and lunch boxes
COLLEGE SPENDING TRENDS:
$235 Electronics
$148 Clothing & Accessories
$120 Residence Hall & Apartment furnishings
$99 Food Items
SHOULD PARENTS INVOLVE THEIR CHILDREN IN THESE BACK TO SCHOOL FINANCIAL DECISIONS?
Absolutely. Great teaching moment. Necessities vs. Luxuries. Ask them to price shop (ex: online vs. store). Ask them to contribute money!
FAST MARKET FACT: Create buckets to save for fall school expenses, reserves, repairs, vacation, etc.
U.S. Savings
June 2019 8.1%
July 2005 2.2%
Savings Balance $4,500
Consider savings “bucket” strategy!
QUESTION FOR OUR MONEYMAN?
Want to learn more about back to school savings in 2019? Do you have other general questions about financial planning? Send them to our Knoxville Certified financial planner Paul Fain or directly to Paul@assetplanningcorp.com!
