Back-To-School Expenses High Despite Help From IRS
Tax credit checks bring minor relief for cash-strapped parents
For Immediate Release: August 28, 2003
ROCKVILLE, Md. — Along with a new year of school comes the unavoidable back-to-school shopping trips. But unlike school years of the past, this year many parents found themselves with a little extra cash arriving in the mail just in time to pick up their back-to-school supplies. The Internal Revenue Service began mailing out advance payment checks valued at up to $400 per child to families who claimed the child tax credit in late July and early August.
"The extra cash from the IRS is not going as far as many families hope," said Steve Rhode, president and co-founder of Myvesta.org, a nonprofit financial management organization. "Back-to-school is typically the most expensive time of year for families and although the extra cash is certainly needed, it's not enough to cover all of the back-to-school expenses."
According to the annual Back-To-School survey conducted by Myvesta.org, the average back-to-school shopper planned on spending $3,184 on back-to-school supplies this year.
"You would need to have eight children for the IRS checks to completely cover your back-to-school expenses," Rhode said. "But then again, if you have eight children heading back to school, your expenses are most likely a bit more than the average family."
According to the Myvesta.org survey, the costs go up as kids get older. Those with children in their household under six years old planned on spending $2,866; those with children in their household aged 6-12 planned on spending $2,992; and those with children in their household aged 13-17 planned on spending $4,081. The national average of $3,184 includes those age groups, as well as college students and adults going back to school.
"After the kids are settled back into their school routines and you've gotten all of your bills from your back-to-school shopping, take a moment to tally everything up. Then you can develop a realistic picture of what your expenses will be next year, and you can start planning now," Rhode said.
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MyvestaSM is dedicated to helping people create healthy financial lives. The organization provides a wide range of materials to inspire and inform people so that they can break down their barriers to financial and personal success. For more information visit Myvesta.org online.
