Back-To-School Budgeting Tips for Families

July 28, 2026

Back-to-school season is here! A new school year brings all kinds of excitement for the whole family; however, the rising costs of everyday goods, including school supplies and clothing can be overwhelming. Setting a budget now helps you stay on track throughout the whole school year. Chattanooga Area Schools Federal Credit Union is proud to partner with educators in the Chattanooga area to reach their financial goals and manage their money with confidence. 

Continue reading for budgeting tips to set your family and classroom up for success. 

Take Inventory Before You Buy

While you may have already purchased supplies for the school year by the start of August, there will be more trips to the store throughout the year. When your child or a teacher requests certain supplies, look around to see what you already have lying around the house before you leave. For example, if your student has filled a notebook, check your home office for notebooks with only a couple of used pages or old notebooks from last school year that were never completed. Reusing old materials and clothing that still have value is a great habit to not only save yourself money over time, but to teach financial responsibility, with the bonus of environmental responsibility too. 

Choose your Budgeting System

Budgeting isn’t one-size-fits-all. Different methods work better for different people depending on their income, goals, spending, and tracking habits. Some popular methods are the zero-based system, 50/30/20, and the envelope method. 

50/30/20

A great way to get started budgeting is with the 50/30/20 method. This budgeting method offers simplicity and guidance to get started managing your money with ease. All you need to know is your after-tax income, and then you can create three general buckets. The original structure is 50% toward needs, 30% toward wants, and 20% toward savings. For those looking to pay off high-interest debt or save for an upcoming expense, a different structure may work better, such as 60/20/20 or 60/30/10. 

Envelope Method 

Sick of trying to budget and giving up? A more hands-on approach, like the envelope method, might be right for you. The envelope method entails literally putting cash in specific envelopes for expenses such as groceries, gas, and more. This gives you a very obvious visual cue when your money allocated to that category has been spent. For the portion of your budget that you want to dedicate to savings, don’t take out cash! Keep that money set aside in a savings account that earns returns and keeps your money safe. 

Zero-Based 

A zero-based budget takes a bit more careful consideration and planning to set up, but it can be highly effective. To set up this type of budget, you will likely need to reference a previous month of spending habits for reference. This is because every dollar from your monthly income must be accounted for in a specific category until there are zero dollars left to be assigned. For educators and families with students heading back to school, referencing a summer month might not be the most accurate. If available, try to find a school month to get a realistic spending expectation. From there, you can make adjustments to your zero-based budget to stay on track to meet your financial goals. 

Budget for the whole year 

Smart back-to-school spenders consider the whole year, not just August! Don’t forget to plan for all of the upcoming costs throughout the school year. When you budget for the whole year, it’s easier to create a buffer for unexpected costs that may arise. Don’t let any of the following sneak up on you: 

• Field trips (spending money, meals, tickets, etc.)

• Replacements (lost items such as headphones, coats, etc.) 

• Technology repairs 

• Digital Subscriptions 

• Tutoring 

• Specialized Materials (project supplies that pop up throughout the year) 

• School Spirit & Events

• Sports & Extracurricular Equipment 

With CASFCU payroll deduction, you can transfer a dedicated amount to savings each month for unexpected expenses like this without having to think about it. That emergency savings account will be funded and ready for you when costs arise, so you don’t have to rely on financing to cover them. Keep tabs on all of your accounts and make transfers with ease using CASFCU online & mobile banking.

Teach Kids How to Budget

As a parent, one of the most important lessons you can teach is financial responsibility. Many children don’t learn how to manage money before they leave the house, and are left to figure things out themselves. A recent survey from Greenlight found that 49% of high school students had never made a budget. Parents can make a big difference in their kids' financial future by teaching them about budgeting. It can be something as simple as inviting them to sit with you and explaining the family budget, or requiring they set up their own budgets for their allowance. While the envelope system might not be right for the whole family for convenience reasons, it can be the perfect way to learn for younger kids. The envelope method can be taught by asking them to split their allowance or earnings into saving, spending, and giving. Simple methods like this can blossom into a lifetime of understanding the value of saving and spending wisely. Learn more about how to teach your kids about finances by reading our recent article here. 

Your Financial Partner Through Every Season

Chattanooga Area Schools Federal Credit Union is here for you this back-to-school season. Whether you need support covering the cost of classroom supplies or just want to reach your financial goals sooner, we have the solutions for you. Members benefit from competitively low rates on loans with flexible terms and savings accounts with greater returns. Become a member today and see why it PAY$ to be a member!