As the summer season winds down, the start of a new school year is fast approaching. Every new school year presents new challenges and opportunities. The anxiety of back-to-shopping can be enormous due to the already high unemployment rate and the rising cost of households goods. According to a survey conducted by the National Retail Federation, 49.6 percent of people said they plan to spend less on school supplies. The average family with students from grades Kindergarten through 12 is expecting to spend under $548.72 on school merchandise – a decline of 7.7 percent from 2008.

The best strategy for back-to-school shopping is to start with a game plan. Following is some recession-friendly advice to help stretch your dollars without depriving your kids (like Kim did!)

Look for special promotions. During this time of the year many stores are offering amazing back-to-school sales. Watch out for special promotions such as free-shipping and those “buy two for one” deals.

Do your shopping during “tax free days.” These days usually last for an entire weekend in either July or August (there are still a few coming up!) This is a great time to buy t-shirts, socks, and school uniforms.

Shop at local consignment stores. The end of summer is when many thrift stores are getting great, gently used clothing. These stores offer amazing pricing for quality merchandise. Thrift stores have strict policies for accepting items so you don’t have to worry about buying anything damaged.

Take advantage of Thursday nights. Many department store sales begin on Thursday and run through Sunday. Many of us save our shopping for the weekend, but a trip to the mall on Thursday can produce great savings and you’ll get first rights on merchandise.

Finally, to save on back-to-school shopping it’s important to set a budget and stick to it. With proper planning, you can prepare your children for another school year without breaking the bank.

Note from Kim:
Not to sound cheap or anything (yeah, right), but you could also try playing the waiting game. Supplies that are not truly needed those first few days are bound to get cheaper after the school year gets underway!

Respondents to a new nationwide survey conducted by Money Management International think that parents should save more to help their children afford college. In fact, nearly half (47%) said that parents should be saving more. Echoing this thinking, nearly as many respondents (43%) think that parents should establish and fund a 529 plan. Rounding out the top three, many respondents (41%) think that students should be responsible for shouldering more of the financial burden.

The focus on saving seems to mirror the changes in national financial perceptions and habits. According to a New York Times article in June 2009: “The personal saving rate, which dipped below zero during the housingboom as Americans tapped home equity loans and other easy lines of credit, rose to 6.9 percent in May, the Commerce Department reported. That was its highest point since December 1993.”

Other less popular ideas for funding an education included dipping into regular savings (19%), taking out a personal loan or use credit cards (17%), taking a second job (12%), taking a second mortgage or a home equity loan (8%), borrowing against retirement savings (6%), dipping into retirement savings (5%), and borrowing against insurance policies (4%). (Note: respondents could select more than one option.)

Several respondents made very specific suggestions which are worth noting:

-”Encourage academic excellence early.”
-”Help when possible, but teach children about financial responsibility at an early
age and encourage them to save, too.”
-”Instead of saving for college, use that college money to pay off their mortgage
sooner. Then use what they would be paying for their mortgage and help their
children with college.”
-”My children join military for schooling purposes. I have poor credit and no
savings live paycheck to paycheck.”
-”Teach their kids they are NOT going to get everything handed to them, as I was
taught; I paid for my college, and so did one of my kids that just graduated. All on
their own.”
-”Teach them to be independent at an early age and help them do for themselves.”
-”Think government should pay for schooling cause without workers there will be
no taxes and no one to pay them in the future.”

For more about college and credit, check out:

Economy calls for a change in college plans
Earn an “A” in personal finance this semester
New & old ways to pay for an education
Money management for the first time adult

One-third of students are changing their college plans because of the economy according to the 2009 Back to College survey. The nationwide survey, conducted by Money Management International, measured the toll of the economy on students’ plans for attending and paying for college.

Tuition, room, and board for the average undergraduate student in the 2007 to 2008 school year cost $11,578 at a public institution ($29,915 at a private school) according to the National Center for Educational Statistics. That price, combined with the sluggish economy, is too much for one-third of survey respondents.

One-third of respondents say they are changing their college plans. Of those who say they are changing their plans for college, 38 percent plan to attend a less expensive school, 35 percent plan to go to a community college to complete basic courses, and 31 percent have decided to attend school closer to home. Four percent of students are postponing college and, shockingly, eight percent have decided not to attend school at all.

Students are shouldering more of the financial burden. Parents, less able to offer financial assistance than in years past, are passing the financial responsibility on to students. Of those surveyed, 86 percent believe students should apply for scholarships and/or grants to fund college costs.

Amber Collins, a sophomore at Louisiana State University, is a recipient of the Bill Gates Scholarship, which offers students as much as $50,000 a year to pay for school and living expenses. Collins took advantage of FastWeb.com, a site that uses students’ demographic and educational information to match them to scholarships and grants they are eligible to receive. Collins says she worked hard for her scholarship in high school, “I earned a 3.5 GPA, got involved in a great internship, and focused on my future so I could attend the college I wanted without worrying about money.”

For students who want the freedom to attend the college they want in the current economy, striving for academic excellence in high school and setting clear goals for the future should be a top priority. There are many options available to help students and their parents pay for school – the key is to do the research.

For more about college and credit, check out:

Earn an “A” in personal finance this semester
New & old ways to pay for an education
Money management for the first time adult