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Floor models can mean back-to-school savings

It's time for back-to-school shopping. With tips from the Consumer Credit Counseling Service, consumers can develop a manageable budget plan to cut costs when preparing for the upcoming school year.

"Today's students need more sophisticated supplies than their parents needed. The demands of their academic programs may require personal computers, calculators and expensive lab fees; without careful planning, families may be forced to choose between their child's education and household bills," said Suzanne Boas, president of Consumer Credit Counseling Service of Atlanta. "Back-to-school sales, thrift stores and recycling last year's clothing and supplies are all supplements to the most important step a family can pursue: budgeting."

CCCS offers free confidential budget counseling including an analysis of the family's financial situation and a forum for the family to ask questions and resolve debt issues. A certified credit counselor will discuss income, debt, assets and liabilities and help the family develop a plan to manage finances.

For back-to-school, consider the following:

• Take inventory. Begin with a list of all back-to-school needs and expenses including supplies, equipment, clothing, and fees for sports, music and science labs. Now check around your house for what you already own. Last year's book bag and supplies may be just what you need to start the new school year. Most students will not need entire new wardrobes. Clothes, shoes and coats are recyclable and can look like new outfits with inexpensive accessories. Gently used musical instruments and sports equipment are considerably less expensive than new ones.

• Buy demos and display products. For big-ticket items like computers, demos and equipment with small cosmetic blemishes offer great consumer savings, and often come with warranties. According to a March 2004 article in the New York Times, almost $80 billion of excess or returned inventory piles up each year. American retailers and manufacturers realize they can recoup some of their costs by selling these products at a discount to consumers.

• Invest in smart plastics. Instead of paying for cell phone plans, consider phone cards. Also consider pre-paid credit cards that allow you to increase credit limits as often as needed. Instead of paying for a car and insurance for students far from home, it may be smart to establish a frequent flyer membership so they can earn points for traveling home.

• Eat wisely on campus. It is healthier and cheaper to pack a lunch than to eat at school food counters and off-campus fast-food restaurants. Deli wraps; cold cuts, cheese and veggie snack trays; and salads with grilled meat are easy to make and will keep in lockers or cars for a few hours. Consider investing in a food dehydrator and make your own fruit chips, fruit rollups and beef jerky.

• Comparison shop. Sunday circulars and direct-mail coupons provide great updates on sales of trusted, name-brand items. Pay particular attention to sales expiration dates. And remember, if it's not on your list, don't buy it even if it is a great deal.

• Pay with cash if possible. Set a spending amount and stick with it. Pay with cash when possible and leave your checkbook and credit cards at home to avoid temptations for unplanned and unnecessary purchases. If you're short on cash, some stores still offer layaway plans if you need time to save up for purchases.

• Use credit wisely. If you have to use credit, limit purchases to items you can pay off in 90 days or less. If you have more than one credit card, use the card with the lowest interest rate. Remember, using a credit card is like taking out a short-term loan. If you're not careful to minimize charges and make payments on time, this short-term loan could become a long-term financial and credit disaster.

• Prepare for next year. Start budgeting now for next year. Set aside money that's designated for back-to-school shopping. This way, you won't be overwhelmed by unexpected costs that could lead to a financial crisis.

If back-to-school expenses are driving your budget into a deficit, contact CCCS at 1-866-330-CCCS or www.cccsinc.org.

For 40 years, families have turned to Consumer Credit Counseling Service of Atlanta for help with money problems. CCCS is a nonprofit, community service agency dedicated to empowering consumers to achieve a lifetime of economic freedom. A United Way partner, CCCS provides free, confidential budget counseling, community and personal money management education, debt management programs, and comprehensive housing counseling.

CCCS is accredited by the Council on Accreditation of Services for Families and Children and is a member of the Better Business Bureau. Governed by a community-based board of directors, CCCS is funded by creditors, clients and grants from foundations, business and government agencies. Service is available at local offices in English, Spanish and American Sign Language. CCCS offers around the-clock help by phone at 1-866-330-CCCS or at its Web site, www.cccsinc.org.