As summer winds down and back-to-school season ramps up, many working families are facing the familiar financial squeeze that comes with a new school year. Rising costs on everything from school supplies to tuition add to the pressure.
This season isn’t just about getting kids ready for the school year — it’s also a great time to prepare for what comes next. Whether your child’s path includes a trade school, an apprenticeship, community college, or a four-year university, utilizing both short-term and long-term saving strategies can make those dreams a reality.
Managing Today’s Expenses: Back-to-School Budgeting
- Start with a Realistic Budget
Begin by listing essential categories: supplies, clothing and shoes, technology, and extracurriculars. Separate needs from wants and set a spending cap for each. A clear plan helps prevent impulse buys and keeps your budget on track.
- Take Advantage of Seasonal Savings
Watch for back-to-school sales, shop around for the best prices, and plan ahead for your state’s sales tax holiday. While Missouri’s 2025 tax-free weekend has already passed, it’s good to keep in mind for next year. If tech items are on your list, consider waiting to buy until Black Friday or Cyber Monday if you can hold off.
- Use Tech to Stay on Track
Budgeting apps like Mint or EveryDollar can help you monitor spending. Browser extensions like Honey or Rakuten can find coupon codes and discounts automatically when shopping online.
- Shop with Your Kids
Back-to-school shopping is a great way to teach kids financial basics. Let younger children compare prices and count change. Give older kids a set amount and let them manage their list. If they want something extra — like a specific backpack or shoes — encourage them to save toward it. These small steps build lifelong money skills.
Planning for Future Education: Savings Plans
There are many options for long-term education savings. A fantastic place to start is opening a Midwest BankCentre youth savings account. These accounts earn 5.01% annual percentage yield (APY) on the first $1,000.* And with only $5 required to open and no minimum balance or monthly fees, they are perfect for young savers.
Another excellent option is a 529 plan, a tax-advantaged savings account specifically for education. Your money grows tax-free, and withdrawals for qualified education expenses are tax-free too. Be sure to talk to your tax professional to understand the specific advantages and disadvantages of 529 plans.
No matter what savings strategies you choose, be sure to start early and stay consistent. Even small amounts add up over time. Treat education like any other recurring expense — like rent, car payments, or utility bills — and consider automating monthly contributions from your paycheck or bank account. This approach makes saving more manageable and less overwhelming.
Teaching Financial Literacy
Saving for education is also a great opportunity to teach your children about money management and financial responsibility. In addition to back-to-school shopping, include your kids in age-appropriate conversations about saving, investing, and goal-setting. Encourage them to deposit money they receive from gifts, allowance, or jobs into their youth savings account. Explain how saving today helps them avoid debt in the future. When kids understand the “why,” they’re more motivated to plan and succeed.
A Smarter Way to Approach School Costs
Back-to-school budgeting sets your family up for success today. Long-term planning and saving prepares your child for tomorrow.
Taking even one step in each area — setting a back-to-school budget and opening or contributing to a youth savings account — can make a meaningful difference. Education opens doors, and financial preparation gives your child the confidence and support to walk through them.
At Midwest BankCentre, we’re here to help working families like yours make the most of every dollar. Whether you’re saving for calculators or college, we’re proud to stand beside you to help you reach your goals.
*Youth Savings is a tiered, interest-bearing savings account. The annual percentage yield for this tier will range from 5.01% to 0.10%, depending on the balance in the account. Rate is effective as of 08/01/2025. Rates are variable and are subject to change at the bank’s discretion.
Originally published in the Labor Tribune’s August publication by Wes Burns, Executive Vice President of Community and Economic Development.