Welcome to August's edition of The Money Minute. As summer winds down, here's your guide whether you're planning final trips, preparing for school, or just enjoying the season.
Back-to-School on a Budget
With 84% of people expecting increased costs this year, strategic planning helps manage expenses:
- Make a list to identify actual needs before shopping
- Set a dedicated budget category for back-to-school spending
- Inventory existing items that still fit or function
- Stagger purchases by buying essentials now and waiting for sales
- Leverage discounts through tax-free weekends and price matching
- Invest in quality items like durable backpacks for long-term savings
- Explore alternatives such as secondhand options or consolidated activities
The 60-Second Impulse Purchase Test
Before buying, pause and consider these questions:
- Is this to impress others?
- Are there cheaper alternatives?
- Do you already own something similar?
- Can you live without it?
- Does it conflict with financial goals?
- Have you wanted it for at least a week?
- Will you use it in six months?
- Can you afford it without guilt or debt?
- Are you calm or emotionally triggered?
If doubts emerge, skip the purchase and redirect funds toward priorities.
Money Mindset: Understanding Why You Spend
Understanding why you spend — whether for external validation, emotional fulfillment, or habit — enables better control. Setting clear goals and tracking expenditures maintain focus. Pausing before purchases to assess alignment with objectives strengthens financial discipline over time.
Try this: Before your next purchase over $50, write down why you're buying it. Is it a need, a want, or an emotional response? No judgment — just awareness.
Want to go deeper? Read the full guide: The 60-Second Impulse Purchase Test: 9 Questions Before You Buy