Back to school supply shopping time is approaching, and the average household is expected to spend about $875 on back-to-school costs – the second-highest amount ever recorded.

Since cost is a factor, there are ways to reduce both costs and stress. Here are some of the most useful tips to help your children have a successful first day of school while keeping your finances under control.

Set a budget

First, set a budget that fits your financial situation, using last year’s back-to-school expenses as a guideline and spending limit. This will help you avoid overspending and ensure you only buy what you really need.

It’s not uncommon for shopping for school supplies to cause financial problems. Nearly 70% of families surveyed by Deloitte cited higher prices as the main reason they’re spending less on school supplies this year, while 47% said they have less disposable income.

A redemption fund

A sinking fund is money set aside each month from a budget to pay off a large future expense or debt. In this case, the money would be set aside for back-to-school shopping.

Essentially, it is a monthly spending category within your budget and it can be held in several types of bank accounts, including your savings or checking account, a money market account, or a certificate of deposit (CD).

Take stock of what you already have

Before you rush to the store, take a close look at your child’s school supplies list and compare it to what you already have at home to help you narrow down what still needs to be purchased.

Talk to the school to prioritize the items needed on the first day of school and postpone purchasing non-essential items that can wait.

According to Katherine Cullen, vice president of industry and consumer information at the NRF, families should make sure their children have the essentials: clothing, shoes, backpacks, electronics and school supplies.

Electronics, such as laptops, make up the largest portion of the back-to-school budget, averaging about $309 per household. Clothing, accessories, school supplies, and shoes also make up a significant portion of the budget.

Buy smart and early

Most families begin shopping for back-to-school supplies three weeks to a month before school starts.

However, starting earlier can provide more opportunities to save. Take advantage of sales and tax-free holidays throughout the year to spread the cost over several paychecks, or use your savings fund. (NRF data shows that spreading the cost over a longer period is often more attractive than actual discounts.)

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Although online shopping is still the most popular option, according to the NRF, be aware of additional costs. Cullen suggested it may be more economical to buy items online and pick them up in store or choose slower, less expensive shipping methods. Also, always check return policies to avoid unexpected costs.

Consider purchasing second-hand items, especially clothing and backpacks.

More and more families and especially students of Generation Z are open to buying used items in order to save costs and shop sustainably.

Buy in bulk and collaborate

Purchasing school supplies in bulk or collaborating with other K-12 families to purchase together can also help reduce costs.

Summer sales and clearance sales offer great opportunities for bargains. Look out for families and schools organizing swaps for old uniforms and school supplies, providing another way to save.

While it may be tempting to start shopping early for next year, Cullen advises caution.

“For many consumers, it can be challenging to store these items, find space at home to store them and make sure they don’t lose sight of them,” she said. “Plus, a child’s growth is hard to predict … and so it can be difficult to purchase some of these things so far in advance.”

If your financial resources are not sufficient to pay for school supplies for this year and meet the income limits, you can contact the following local chapters and websites:

• The Salvation Army

• United Way

• Boys and Girls Clubs of America

• Feed the children

• Operation Homefront (Military Families)

• Local school districts

• National PTA

• Community centers and churches

• Local businesses

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