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Don't go overboard with back-to-school shopping again

Here are a few tips on how you can manage your expenses effectively and avoid overspending:

It's that time of the year again - the kids will be back to school in a couple of weeks. One of the significant aspects of resuming school is finance. As responsible parents, we want the best for our kids: the best school, stationary, other supplies and even after-school activities. All of this will cost money.
Here are a few tips on how you can manage your expenses effectively and avoid overspending:
Plan
While there is no substitute for your experience as an engaged parent, several schools will give you a list of school supplies that will be required. Put the two together and churn out your own shopping list. This will eliminate impulse purchases and will also avoid a chaotic shopping itinerary.
Budget the cash flow
Short term: In the UAE, you typically need to pay schools fees either two or three times during the academic year. Therefore, the best thing to do is to figure out a way to manage your monthly salary and set aside a sum to cover your average monthly school fee expense.
That will ensure you don't run around every September to find the cash you need. There are some very simple ways to achieve this. It is not uncommon for schools to have extra activities that require payments such as swimming or horse riding - therefore better to budget for that too.
Long term: If you are saving for longer term education needs, such as university fees, you may want to look at recurring monthly savings and investment plans. These plans allow you to place small and manageable amounts into mutual funds with the objective of achieving a more sizeable amount which you will need in the future. Such plans often have useful riders such as life insurance and accident covers that add peace to your mind.
Shop wisely
Start by raiding the closet and shop at home first. A new academic year should not necessarily mean that you need to go out and buy everything again. You may have unused stationary, a lunch box in mint condition or even sneakers that fit perfectly.
Avoid impulse purchases. As parents, we can get emotional and would love to buy everything your kids lay their fingers on. But that's not always good parenting - a subtle lesson can be imparted to your kids by teaching them the value of budgeting and managing trade-offs.
Sidestep the marketing gimmicks. Some stores will move relevant inventory to the front weeks before schools start and try to entice your kids (and you) to splurge on school supplies. Don't be swayed and stick to your list.
Go online. Your kids probably have a good idea of what their new school bag should look like. Whether it's a Minion or One Direction, you'll find a whole range of options online and have them delivered to your doorstep. Make sure you allow enough time for delivery.
Check various apps on offer. Some mobile apps for shopping in the UAE will allow you to zoom in and find specific deals for items on your list.
Use the right mode of payment
A few bank issue credit cards that offer 10 per cent cash-back on school fee payments. Most cards will offer you a three-month or six-month easy payment plan at little or no cost.
Even if your child's school does not allow you to pay by credit card, your card issuer could issue a cheque for school fees against your existing credit card limit.
Look for specific offers with your debit/credit card or the loyalty programme that your bank offers. You may be able to redeem your loyalty points at stores for school supplies. You may also be able to get a discount.
Take finance only if you have to
In case you need financial assistance to manage the lumpsum fee payments, you may want to opt for financing. If you do, make sure you find the right form of financing.
Several banks offer dedicated school fee payment financing. These are typically better priced and have more straightforward documentation.
Choose the right payment tenor. If you are looking to finance a year's fee, you should match the duration and take financing for a year too. Funding a recurring annual expense with a four-year financing may lead to overspending and create an even bigger problem when the next school fee is due.
The writer is business head of consumer finance at Noor Bank. Views expressed are his own and do not reflect the newspaper's policy.