The approaching start of the school year evokes emotions in both adults and children – some are happy to see their classmates soon, others are saddened by the end of summer, and many parents of schoolchildren are united by concerns about upcoming expenses. Violetta Platonova, Head of Private Clients at LHV Bank, shares advice on how to get your child ready for school and avoid a hole in the family budget. We need a plan! The first rule of a financially literate parent is not to rush and give in to the emotional impulse to buy notebooks and diaries as soon as they appear on the shelves. Haste is the main enemy of planning. If your child is no longer a first-grader, then start by reviewing the existing school supplies and clothes with your child and assessing what needs to be replaced and purchased, and in what order. The necessary school items can be divided into several categories: After sorting out the existing items, you can make a list of necessary purchases, as well as determine the order and priority of their acquisition. Try to keep the list to a minimum, because it is not necessary to buy everything by September 1. For example, if you know that physical education in the gym will start in mid-autumn, then you can buy new shorts and a T-shirt later. The same applies to stationery – it is important that by the beginning of the school year the child has a minimum basic set – a diary and writing instruments. Everything else can be bought later, especially since after the excitement subsides, some items can be bought at a big discount. Go on reconnaissance After you have made a list, figure out how much you are willing to spend on this or that item. Then go on reconnaissance on the vast expanses of the Internet – look for products that meet your expectations in terms of price and quality. You will probably find that it is better to buy some of the items from the list online – this will not only save money, but also the time you would have spent in the store. A targeted search will also help you refrain from impulsive purchases. Before buying online, it would be a good idea to look for a discount code in the chosen online store – the difference in price can be significant. Also think about which of the necessary things do not necessarily have to be new. A festive outfit for the school assembly, which the child will wear a couple of times, can be found in parent groups on social networks. Perhaps there you will find inspiration for what things that your child no longer needs, can be useful to someone else. For things that need to be tried on or that you want to see in person, go in the morning and with a fresh head – this way you will avoid the crowd and the desire to buy at least something to finish it quickly. And try not to deviate from the list! Involve the child It is useful to involve the student himself in the preparation for the new school year – firstly, he will have to go to school, and secondly, paradoxically, this can help save money. For example, when choosing a backpack, in addition to the volume, brand, price and ergonomics, it is worth considering the character of your child and how he treats things. If you know that the backpack is unlikely to last more than a couple of months, because it will be thrown, dragged and stuffed, then there is no point in choosing an expensive backpack "for growth". Many schools now have lockers in which you can leave textbooks and other things, so maybe your schoolchild will prefer to walk with a bag. If we are talking about younger students, then it is very important for them to take part in choosing a backpack and pencil case themselves – they are much better versed in the superheroes and characters of games and cartoons that are fashionable this season. Of course, it is up to you to decide how willing you are to accommodate your child's interests, but items chosen with your child's participation are more likely to be used with greater pleasure and care than if you are guided only by your own considerations, and as a result the child will not value the item, or will refuse to wear or use it at all. Another expense item associated with the beginning of the school year is all kinds of clubs and classes of interest. Experienced parents know that extracurricular activities cost a lot of money, which is especially a pity if for some reason things do not work out with the hobby. Therefore, if you are planning that your child will go to new classes in the fall, do not rush to buy a uniform or equipment in advance and pay for classes for six months in advance. Inquire whether it is possible to attend the first class for free or pay for each visit separately until you are sure that it will be for a long time. For example, a monthly pool membership is cheaper than paying for single visits twice a week, but if the likelihood is high that the child will only go to the pool a couple of times in a month, then there will be no benefit from this. Children and attitudes towards money A healthy relationship with finances is a difficult task even for adults, but going back to school can be a good opportunity to talk about money and planning expenses and lay the foundation for healthy financial habits. Discuss with your child how much money you are willing to spend on a purchase in a particular category, and if your child wants something off the list, discuss which expense item will have to be given up or a cheaper option chosen. It is also useful to discuss the topic of pocket money – how much money a child can count on per week or per month, whether it is better to give it in cash or open an account for the child and teach him or her how to use a bank card. Almost all banks offer the opportunity to make a child's own card, which the parents will also have access to. These cards often come with additional bonuses in the form of discounts or offers from partners whose services are often used by schoolchildren and students – electric scooters, food delivery, events or even parking. For example, at LHV, a Youth Card can be issued free of charge to a child from the age of 6, and they can use it until they are 25. Acquiring financial literacy skills is a process that takes time and patience. Your efforts to plan expenses and involve your child in decision-making will help them develop skills that will be useful throughout their life. Good luck preparing for the new school year!
