|  | For Immediate Release Contact: Courtney Scruggs
248/488-0419
BACK-TO- SCHOOL SAVINGS TIPS FOR YOUR HOUSEHOLD BUDGET
July 22, 2003, Farmington Hills, MI -- GreenPath Debt Solutions reminds consumers to shop wisely and apply these helpful hints over the next two months as families begin to take inventory of school necessities and retailers prepare to stock their stores for the back-to-school shopping season. GreenPath is a member of the National Foundation for Credit Counseling, Inc., the nation's largest and original nonprofit credit counseling organization offering consumers free and affordable money and credit management advice and educational programs.
"As students gear up to return to school in August and September, costs for clothing, computers, backpacks, calculators, notebooks, pens, paper and other school supplies can quickly add up for any household," says Courtney Scruggs, public relations specialist. "Consumers can counter some of these costs by shopping during retail back-to-school and clearance sales." The recently enacted federal tax relief bill will also boost back-to-school budgets for some families eligible for lower payroll tax withholdings.
A 2002 survey by the National Retail Federation survey showed consumers with school-aged children spending an average of $442 to $513 per household on back-to-school shopping.
The latest figures reported by the U.S. Census Bureau show in August 2001 an estimated $5.1 billion was spent in clothing stores, and an additional $2.0 billion was spent in bookstores during the back-to-school shopping season.
To get back to the basics of managing your money wisely, GreenPath offers the following tips to help consumers avoid overspending during the back-to-school shopping season:
· Develop a back-to-school budget. Take time to review how much money you'll need to cover your monthly household expenses. Designate what's left to shop for school supplies. Involve your child. Use this as a teachable moment to help him or her understand how to manage money responsibly by sharing the spending goal and how they can help meet that goal.
· Take an inventory of school necessities. This is a good time to pull out clothing, shoes and supplies for an inventory of what's still useable. Create a comprehensive shopping list of new school needs ? clothes, uniforms, athletic gear, books, eyeglasses, musical instruments, paper goods and other items. Determine your spending goal based on what you can afford to spend on clothing and supplies. Carry your shopping list to keep you on track.
· Remember to Recycle
Consider donating clothes and other items that are no longer useful and can be recycled through charitable organizations. Be sure to get a receipt for tax credits during the next income tax filing season. Second-hand clothing can be a saving grace for those youthful growth spurts. Why not shop at that same recycling center for your own bargains? By doing so, you can teach your child how recycling clothes, lunch boxes, book bags, and other items is good for the environment and your household budget.
· Shop for the best prices. Get the best value for your dollar by checking for retail coupons and sales. Listen for TV and radio commercials and check your local Sunday newspaper for back-to-school and clearance sales.
· Check for sales tax holidays. Check with the local city and state government tax and revenue offices to see if a tax free back-to-school shopping holiday is authorized in your area. Although each jurisdiction may set different criteria for shopping, such as designated stores or limits on the kind and amount of purchases, either way its immediate savings for your back-to-school budget.
· Limit expensive brands. You can save money on clothes and selected school supplies by purchasing generic or lesser known brands. But be sure the lesser known brands are durable and quality products.
· Pay with cash if possible. To maintain your budget, set a spending amount and stick with it! Pay with cash when possible and leave your checkbook and credit cards at home to avoid temptations for unplanned and unnecessary purchases. If you're short on cash, some stores still offer layaway plans if you need time to save up for purchases.
· Spend wisely. If you have to use credit, limit purchases to items you can pay off in 90 days or less. If you have more than one credit card, use the card with the lowest interest rate to minimize the amount you'll have to pay back. Remember, using a credit card is like taking out a short-term loan. If you're not careful to minimize charges and make monthly on-time payments, this short-term loan could become a long-term financial and credit disaster.
· Prepare for next year. Set aside money in an account in advance that's designated for back-to-school shopping. This way, shoppers won't be overwhelmed by unexpected costs that could lead to a financial crisis.
Call GreenPath Debt Solutions if back-to-school expenses are driving your budget into a deficit. GreenPath's trained, certified counselors help consumers overcome debt crises through advice and money management skills training. Call GreenPath Debt Solutions at 866-648-8122 or visit our Website at www.greenpath.com.
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