A Primer for Parents in Dealing With Back-to-School Expenses

In the next few weeks, millions of students will be trading in their tennis rackets and swimsuits for book bags and jackets--and their parents will be faced with yet another round of seasonal expenses.

Back-to-school necessities can add up quickly. There’s $30 for a new backpack, $40 for gym shorts, $50 for cheerleading uniform rentals and $100 for new computer software to help with homework.

“I think the American household--particularly those that don’t budget year-round--will get some pretty nasty surprises during this time of year,” said Durant Abernethy, president of the nonprofit National Foundation for Consumer Credit in Silver Spring, Md.

He says the NFCC’s 1,500 credit counseling offices nationwide routinely see an increase in activity by late autumn--when the bills for back-to-school supplies and clothing start rolling in, along with some leftover summer vacation bills. Many households handle these extra expenses by charging them on their credit cards.

Most people, though, can avoid going into debt for seasonal expenses by properly budgeting for them, setting aside money throughout the year.

“It’s something that should be done. [But] the reality of anyone doing a budget is not great,” said Howard Dvorkin, president of Consolidated Credit Counseling Services, a nonprofit service in Fort Lauderdale, Fla.

Here are some suggestions from the credit counseling experts to help parents and students plan for and save on back-to-school costs:

* Estimate expenses. Sit down with each child and list every expense you can think of, from notebooks to blue jeans. Then have the student come up with an estimate of the cost.

* Establish a budget. Total all those expenses, then set spending limits. Determine what you can pay cash for and what you’ll need to charge. (Remember: Whatever you put on plastic should be paid off as soon as possible to avoid the heavy interest charges.)

* Determine wants versus needs. While school supplies are essential, the latest in footwear isn’t. Tell your child how much you think is reasonable to spend and what amount you’re willing to pay.

* Comparison-shop. Take your children along as you seek the best deals at discounters and at retailers with back-to-school specials, so they can see firsthand the benefit of shopping around.

* Plan ahead. Many schools distribute lists at the end of the school year of the supplies required for the next grade level. If you start at the beginning of summer, you can spread your school purchases over a period of time, thereby allowing you to pay with cash instead of on credit.