The University of Florida Extension
It seems like summer just started a couple of weeks ago, but August is here and it's time to gear up for a new school year. This year, the tax-free holiday begins today, August 3rd and runs through the weekend. It's a great time to stock up on back-to-school supplies and clothing. According to the Florida Department of Revenue (FDR), all clothing and footwear selling for less than $60 per item are tax-free. School supplies selling for $15 or less per item are also tax-free; you can find a complete list of categories on the FDR website. Your total bill can exceed these amounts if each item is under the designated limit.
Shopping for a new school year can be expensive for families. If you make purchases with credit cards, it may take months to pay off the debt. So, before you venture out, make a spending plan for your new purchases.
One of the first and most obvious categories for back-to-school spending is clothing. Shopping for new back-to-school clothes is a necessity in more cases because the kids have usually grown over the summer months and may no longer fit in their school clothing from the previous year. It is important for consumers to make the most of your clothing dollars and there are several ways to do this. Here are a few suggestions from Extension educators to help stretch your dollars.
▪ Take an inventory of your children's clothing that is still wearable. Do this with your kids, have them try on clothing from last school year and decide which items can be worn for the start of the new year and make a list of needed items.
▪ Know the school dress code before you shop. Find out what is permitted to wear and the rules regarding dress and backpacks.
▪ Recycle clothing and backpacks whenever possible. Get with family and friends to pass along clothing that is too small to wear. You may become the owners of some great clothing items that are free!
▪ Make a plan to space out purchases over several months. For example, with our warm temperatures, long pants may not be a necessity to buy until late fall.
▪ Resist impulse buying. Make a list and stick to your plan to keep from overspending.
▪ Pay cash whenever possible. Use a credit card if you can pay the amount in full when the bill comes.
School supplies are another large expenditure in back-to-school preparation. Retailers are in competition and may offer drastically reduced prices to get you into the store, knowing customers will stroll through the store and add more items to their carts. Take advantage of the competition, make your list according to advertised items and then stick to your list and refrain from wandering through the store. By using this strategy, you will be able to save as much as 20 to 40 percent on school supplies purchased during back to school sales. Anticipating the child's needs for supplies throughout the year and buying them at one time will save money in the long run, if you have enough money and storage space.
Let your children be a part of the planning process; they will begin to develop money skills for the future. It is also a good lesson to know that planned spending helps you get the most for your dollars without overspending. Set a dollar amount for clothing and supplies and have children make their own shopping list. By following this strategy, back-to-school purchases won't exceed a certain amount and you avoid unnecessary debt.
For more information on consumer spending and money management, contact the Madison County Extension Service.
The University of Florida Extension/IFAS – Madison County is an Equal Employment Opportunity Institution.