Like most parents of school-aged children, I recently went through the time-honored tradition of shopping for the many items on the annual back-to-school supply list. As anyone who has had to complete this search knows, it can be equal parts exciting, exhausting, and expensive. I know the tradition exists for a reason: having the right tools on hand from the back-to-school can help kids transition more smoothly and feel more prepared for a successful year in the classroom. I’ve also been thinking about the correlation to back-to-school financial planning.
Most of the list feels familiar every year: pencils, folders, notebooks, markers, glue, and the usual back-to-school basics. But this year, tucked among those predictable supplies, was one item that stood out because it was both simple and oddly specific: one new tube sock.
Because it seemed so simple, I kept assuming I would grab it later. I wanted my child to start school with everything the teacher had specifically asked for, but compared with the rest of the list, the sock didn’t feel urgent.
Of course, I forgot about it until the last-minute list cross-check. That is how I ended up running to the store the night before school started alongside all the other parents who had forgotten the random but equally important thing on their list.
That experience reminded me how easy it is to put off to-dos that don’t feel urgent when we know we’ll get to them eventually. Then, suddenly, the deadline is here, and the small thing we meant to handle becomes the thing we are scrambling to find.
The same pattern can show up in financial planning.
“I’ll get to it” decisions often get delayed while more immediate tasks saturate our attention. But smaller planning items matter, too, because they help support the people, priorities, and plans we care about most.
Back-To-School Financial Planning
We can use the same practical mindset when it comes to back-to-school financial planning: what needs your attention so your family feels supported, and you can move into the next season with more confidence?
You don’t need to overhaul everything. Sometimes, taking a few small steps in the right direction can make a meaningful difference.
Start With Your Budget
Summer can change our normal routines. There may be vacations, camps, activities, travel, meals out, and other expenses that don’t show up in the same way during the rest of the year. As school starts and routines begin to settle back into place, it can be a good time to review your budget, look ahead, and see where things stand.
This is not about looking backward and feeling bad about what you spent over the summer. It is about giving yourself a clear starting point so you can make thoughtful decisions about what comes next.
What expenses are coming over the next six to twelve months? Do we need to plan for insurance premiums, sports fees, school-related activities, trips, tuition, or other larger expenses?
One of the benefits of back-to-school financial planning is that it may help you anticipate what’s ahead instead of waiting to be surprised. A cash flow review can help you identify upcoming expenses and decide how you want to prioritize them before they become overwhelming. Maybe you need to adjust your monthly savings. Maybe you need to set aside money for a known expense. Or maybe you are doing just fine and simply want the assurance of knowing where you stand.
There is no one right answer. The important step is taking the time to look before something small turns into a last-minute scramble.
When Childcare Costs Change, Redirect Your Dollars
As kids get older, family expenses often change.
Maybe you no longer need full-time or after-school childcare. Or perhaps you are spending less on some of the expenses that came with having younger children.
When those expenses go away, it can be tempting to simply let that money get absorbed into your everyday spending. Instead, consider giving those dollars a new job.
If you have been paying $500 a month for childcare and no longer have that expense, there is $6,000 a year that could potentially be redirected toward another financial goal. That could mean increasing retirement savings or contributing to a 529 plan for college. Maybe it’s a combination of both.
As parents, it is natural to want to help our children. We want to give them opportunities and make their lives easier where we can. Saving for education through vehicles like a 529 plan can be an important part of that. However, it also can be a good time to remember that increasing retirement savings deserves attention, too.
There are a number of ways families can help fund education, including savings, scholarships, work, and loans. Retirement doesn’t come with the same range of options, which is why it’s important to consider both goals together. It simply means finding the right balance between helping your children and making sure you are taking care of your future self.
If a childcare expense has disappeared from your budget, consider whether those dollars can help move one of your other financial goals forward.
Look at Your Beneficiaries
When was the last time you reviewed the beneficiaries on your retirement accounts, life insurance policies, and other important accounts?
This is another planning item that can sit quietly on your list for years, even though it can have a major impact on whether your wishes are carried out the way you intend.
And while a summer at home together may give every parent a few stories to tell, your beneficiary designations probably should not depend on who was easiest to get out the door each morning. Life changes, and your beneficiary designations should reflect those changes.
It is important to review both primary and secondary beneficiaries and make sure they are still appropriate. This is especially important after major life events such as a marriage, divorce, birth of a child, or death in the family. It is also worth reviewing even if nothing significant has changed.
Beneficiary designations can take precedence over what is written in a will for certain accounts. That makes this a small task with potentially significant consequences.
This is another example of something that may not take much time, but it is still worth checking this back-to-school financial planning item off your list before you need it.
Review Your Estate and Insurance Protection
Back-to-school season can also be a good time to revisit your estate plan and insurance coverage. When you originally created your estate documents, your family may have looked very different than it does today.
Are the people you originally named as guardians for your small children still the people you would want to step into that role today? Has your financial situation changed enough that your insurance needs should change, too?
Do you still have the appropriate amount of life insurance? Has your income changed, or have you purchased a new home, taken on additional debt, or experienced another significant life change?
These are not necessarily things you need to change every year, but they are worth reviewing periodically because your family, finances, and responsibilities can change over time.
And if you don’t have an estate plan, this can be a good time to start the conversation. Estate planning can feel overwhelming, particularly when you’re thinking about what would happen to your children if you weren’t here. But you don’t have to figure everything out at once.
Your TCI advisor can help you think through how your estate plan fits into your broader financial picture, and an estate planning attorney can help you create or update the legal documents that put those decisions in place.
Again, back-to-school financial planning is about taking a solid next step rather than waiting until everything feels urgent.
Don’t Forget the Sock
The beginning of a school year brings new schedules, teachers, activities, priorities, and routines. With so much happening at once, it is easy to focus on what is at the top of your to-do list and overlook the smaller things that do not feel urgent yet.
Financial planning can fall into that same category. Maybe you have been meaning to review your beneficiaries. Maybe your insurance coverage needs another look. Perhaps you have been talking about increasing your retirement savings, opening a 529 account, or reviewing your budget. None of these may feel like the biggest item on the list, but each may help you feel more confident about supporting your family and goals.
If you would like some accountability or back-to-school financial planning guidance, please reach out. We can review the whole list together, talk through priorities that may have shifted, and identify the next steps that make sense for you and your family. After all, sometimes the smallest item on the list is the easiest one to forget.
TCI Wealth Advisors, Inc. is an SEC registered investment advisor. This material is provided for informational purposes only and should not be construed as investment advice or a recommendation. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. TCI is neither a law firm nor a certified public accounting firm, and this material should not be construed as legal or accounting advice. Moreover, you should not assume that any discussion or information contained herein serves as the receipt of, or as a substitute for, personalized investment advice. No amount of prior experience or success should be construed that a certain level of results or satisfaction will be achieved if TCI is engaged, or continues to be engaged, to provide investment advisory services.
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