Inflation and Back To School Shopping [Video]

by Michelle Smalenberger, CFP® / August 8, 2022

Did you know that inflation is affecting your back to school shopping … and how you should be shopping?

I may not be older than you, but I am old enough to know what has happened in the past and compare it to how things are today. And that’s exactly what we are going to talk about today.  One of these topics we see much more today than in the past, is inflation.

What is Inflation?

Now what is inflation? Inflation is simply something that costs one amount yesterday, a month ago, or a year ago, or even years ago, but now it costs something different now then it did. And its that difference that we call inflation. The increase in price from that time until today. 

This matters because today we are seeing inflation at higher percentages and levels. Therefore, it affects us more. We really want to think through and make sure we are aware of how its impacting our finances. Day by day we have different expenses, and these expenses make up what money we have leftover that we are able to save, all these things that flow through our finances

Why Is There Inflation Right Now?

Higher Costs

Right now there are higher costs to things we buy at the store. These higher costs have now flowed through to us as the consumers. These businesses are not saying we are going to pay these extra fees, we are going to pass them on to you, the consumer.

Supply Shortages

Think of some things you use. Some supply shortages that are affecting a lot people right now are things like gas and utilities. These might actually have shortages because there are less of these things so they cost us more to use them. Supply shortages and even the supplies within some things. A car is made up of so many different parts, making that car cost us more to buy now. There are so many different little supplies, and all those little costs are being passed onto the consumer.

Higher Wages Cause Inflation

It could even be higher wages. Think about your employer with your job. Since inflation is costing you more you might be hoping that you will get a raise or you may go find a different job where you can make more money. This makes employers have to pay their employees more to keep them in their current job.

Stimulus

Another thing that could cause some inflation is the stimulus that everyone has received. Over the last couple of years the government has given stimulus money to help the economy get back up and running. Of course these were due to health issues that have affected our economy and schools, and so stimulus has been given to people to help them when they might have been unemployed or didn’t have a job for a period of time. This stimulus is even more money in our economy. Because of this people are buying more things and all of these affect how many products are available to us and how much we have to pay for them. 

Inflation affects different areas of our finances and it affects them all differently. So even normal areas of inflation where we are not seeing things cost more for example healthcare and college. These are things that typically have higher rates of inflation each year even when the economy isn’t growing like it is today.

How to prepare for Back To School Shopping?

All these details, the supply and demand, the rising prices, the workers wages, the cost of utilities, and more are affecting the cost of basic items such as school supplies. Stores are going to do their best to make sure you spend as much as possible. While you may be able to afford these extra costs, that doesn’t mean you have to spend that extra money. Start watching our video at 4:40 minutes to hear our checklist of things to help save money even during inflation in back to school shopping!

Back to School Shopping checklist

  1. Look at what supplies you already have at home- No need to rebuy ones you already have.
  2. Compare store prices on supplies- Look them up on your smart phone while you are there or before you head to a store.
  3. Shopping with awareness- Don’t be afraid to look in different parts of the store not just in the “school supply section”. It may not be at eye level so look high and low!

A final note for here in Illinois prices for school supplies and clothing are actually going to be cheaper from August 5-14th . The State passed a bill that will save 5% off tax on these items.

We hope this is helpful as you are looking to get school supplies and maybe this gives you some ways you can save on these items. If you are looking for ideas on how you can save money on things as they naturally creep higher, please check out our website because we have other videos on how to save money on normal things that you buy.

Ready to take the next step?

Schedule a quick call with our financial advisors.

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Michelle Smalenberger, CFP®

I have a passion for helping others develop a path to financial success! Through different lenses on your financial picture, I want to help create solutions with you that are thoughtful of today and the future. I have seen in my life the power of having a financial plan while making slight changes of direction from time to time. I believe you can experience freedom from anxiety and even excitement when you know your finances are on track.