Well, it's that time of year again. Back to School (BTS) deals are being offered with an in-your-face intensity that would make Jocko Willink blush. And the most marketed to culture in the history of humanity is facing a heightened barrage right before school starts.
Deloitte expects back-to-school spending to reach $32.5 billion for K-12 students, up 16% year over year. According to a recent National Retail Federation survey, families expect to spend a record amount on back-to-school shopping this year. Households with K-12 children expect to spend an average of $849 — up from $789 in 2020 and $697 in 2019. According to Forbes, parents plan to make more significant investments in technology this BTS season. Researchers expect laptops to be the top electronics purchase, but the market is also seeing substantial purchases of smartphones for elementary school students.
No household is immune to the pressure to participate in the BTS purchasing bonanza. Here are just some of the "deals" that have assaulted the Kennedy home in the last few days:
-Old Navy is offering jeans at 50% off for "ONE DAY ONLY!"
-Target is offering a $15 off coupon for purchases of $75 or more.
-Kohls will take $20 off your purchase if you spend $100.
Now I'm not saying that a new school year doesn't require some expenditures. We've got a nine-year-old who seems to be on pace to be 6'7" one day. Thanks to his 2020 school year hiatus, he needs new shoes, shirts, pants, jackets, and everything else on the list, and we will make room in the budget for these items. What concerns me is when corporate marketing teams can sway consumers into impulsive purchases.
Today is August 1st, so it's an excellent time to remind readers that we must give every dollar a name before the month begins. It's not a coincidence that I use the Every Dollar app, and my clients have been finding this tool very useful. It forces couples to look at the entire month to be sure that there won't be "too much month left at the end of your money."
So don't be fooled by all the deals coming your way this Back to School season. The real value comes from sticking to a budget and avoiding all the stuff you don't need.
If you'd like to talk more about BTS purchases and all the other expenses required to run your home, I'd be happy to speak with you. Feel free to schedule your free consultation to form a plan to get through BTS and every other spending season.
Until Next Sunday,
Phil
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