Budgeting for school expenses (video)
Written by Preet Banerjee
Wednesday, September 14th, 2016
When it comes to budgeting, getting a handle on the expenses that happen like clockwork is relatively easy. Car payments, mortgage payments and gym memberships don’t tend to change too much, and if they’re variable month to month, we still have pretty good guesses as to what they’ll be.
But the irregular expenses are where many budgets can fall apart. These include holiday, birthday, and anniversary spending, attending weddings, vacations, and anything else that quite frankly, doesn’t happen with as much predictability as our monthly expenses.
And one of the biggest sources of non-monthly expenses are all the things you have pay for when your children are in school, which range from supplies, to fieldtrips, to fundraisers, and more.
Creating a budget for school expenses is no different than creating a budget for anything else. You need to figure out what all the expenses are, and then figure out how you’re going to fund them.
On the expense side, you’ll have items such as:
- School supplies
- School photos
- Uniform costs, if applicable
- Sports equipment
- Prom and formal wear
It’s a good idea to check with the teacher or the school to see if they have a calendar of expenses to help you plan for everything.
Once you’ve added up all the out-of-pocket costs, now you need to figure out how you want to fund them. It might make sense to take the total amount and divide by 12. Even though the school year might be 10 months, it’s easier to keep a monthly contribution going indefinitely instead of starting and stopping it.
So if you’ve calculated the expenses to be $500 for the school year for your child, dividing that by 12 gives you $41.67. Rounding that up, you might set up a dedicated savings account with automatic transfers of $42 per month.
Sometimes it feels like there is expense after expense that you keep getting hit with during the school year… because you do! You can keep on top of those expenses by planning for them ahead of time.
This article or video (the “Content”), as applicable, is provided by independent third parties that are not affiliated with Tangerine Bank or any of its affiliates. Tangerine Bank and its affiliates neither endorse or approve nor are liable for any third party Content, or investment or financial loss arising from any use of such Content....
The Content is provided for general information and educational purposes only, is not intended to be relied upon as, or provide, personal financial, tax or investment advice and does not take into account the specific objectives, personal, financial, legal or tax situation, or particular circumstances and needs of any specific person. No information contained in the Content constitutes, or should be construed as, a recommendation, offer or solicitation by Tangerine to buy, hold or sell any security, financial product or instrument discussed therein or to follow any particular investment or financial strategy. In making your financial and investment decisions, you will consult with and rely upon your own advisors and will seek your own professional advice regarding the appropriateness of implementing strategies before taking action. Any information, data, opinions, views, advice, recommendations or other content provided by any third party are solely those of such third party and not of Tangerine Bank or its affiliates, and Tangerine Bank and its affiliates accept no liability in respect thereof and do not guarantee the accuracy or reliability of any information in the third party Content. Any information contained in the Content, including information related to interest rates, market conditions, tax rules, and other investment factors, is subject to change without notice, and neither Tangerine Bank nor its affiliates are responsible for updating this information.
Tangerine Investment Funds are managed by Tangerine Investment Management Inc. and are only available by opening an Investment Fund Account with Tangerine Investment Funds Limited. These firms are wholly owned subsidiaries of Tangerine Bank. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.