Late Back-To-School Shopping Lifts Retail Sales

During times of economic struggle it is not uncommon for new consumer trends to surface, the latest of which is late bargain shopping. Retailers saw stronger-than-expected sales in September as shopping held out for back-to-school clearance bargains. This is a trend that many expect to be repeated during the holiday season.

Reuters.com reports:

Department stores and luxury chains also posted forecast-beating results, helping push retail shares higher.

But retail experts warned that shoppers are still cautious as they draw up budgets for the holiday season, as unemployment remains high. That means they are likely to hold out for discounts again even if overall spending rises from 2009.

"It was a late back-to-school season that started slowly while shoppers waited for discounts," said David Bassuk, managing director at AlixPartners' global retail practice. "And it looks like they'll do the same for the holidays."

U.S. same-store sales rose 2.8 percent, according to Thomson Reuters data which tracks 28 top chains, beating analysts' estimates for a 2.1 percent increase. It was the 13th straight month of sales gains.

Read more here

Sending your Child Back to School Without Breaking the Bank

According to a recent survey, nearly 60 percent of parents plan to change the way they shop for back to school items for their children because of the poor economy. The same survey also found that over a quarter of the parents in this country said their children needed more expensive items, such as computers, because of education related budget cuts.

Although not all U.S. taxpayers have children, the back to school season is second only to December holiday shopping when it comes to the amount of money American consumers spend in a month. To help the readers of my blog looking to send their children back to school without breaking the bank, I have put together the following list of money saving tips.

Read Reviews Online

Before you embark on a back to school shopping trip you should always do some online research, especially if you are going to buy expensive items like a computer or laptop. Read reviews from other customers, and run a few searches to make sure you are getting the best deal.

Shop Online

These days it is easy to buy supplies online, and a lot of retailers even offer free shipping on some purchases. Even if you have to pay for shipping, the money you save will often outweigh the added shipping expenses.

Start Early & Watch for Sales

It is already August, and some children will begin going back to school in a week or two. There is no need to wait until your child’s first day of class to purchase all of the supplies they need. Start shopping now, and be on the lookout for good sales. If you do not know what supplies your child will need, then you could try contacting either their teachers or parents of other students in the same grade.

Buy in Bulk

With basic supplies – such as pencils, paper, glue sticks, etc. – you might want to consider buying in bulk. Although your son or daughter obviously does not need a few dozen pencils on the first day of class, you can stock up now and use the supplies throughout the year. During back to school season many education essentials are discounted significantly, and by stocking up now you can save a decent amount of money throughout the year.

Take Advantage of Sales Tax Free Weekends

If you live in a state that has a sales tax free weekend you should try to plan your back to school shopping around the days when the tax breaks are in affect. Many stores also offer additional discounts on school supplies during sales tax free weekends. There are dozens of states offering some type of tax free holidays including Florida, Texas, New York, Iowa, and many others. To see if your state is offering a tax free holiday, check out this article on About.com.

Donate a Backpack

While you are purchasing supplies for your child, it is important to remember that there are thousands of children in this country without the supplies they need to succeed. During back to school season there are always charity drives asking for backpack donations, and if you can afford the extra expense I highly recommend making a contribution. In addition to helping out a child in need, you can also keep the receipt and claim the donation as a charitable contribution on your next tax return.

Coming Up: Tax-Free August Shopping

The new school year is just around the corner, and for millions of parents and students that means back-to-school shopping. Luckily, several states will be offering sales tax holidays in August. This year there are 17 states with tax holidays that apply to a number of items including clothing and basic school supplies. Forbes.com put together a good summary of the states offering tax-free shopping. I have included a portion of their article below, but you can find the full text at Forbes.com.

Within the next five weeks 17 states with sales taxes will be offering "holidays" during which certain purchases can be made tax-free. Take a trip to the right mall at the right time and you can save up to 10% in tax (including local levies) and possibly more, since some retailers offer sales timed to capitalize on the attention sales tax holidays draw. (Five states--Alaska, Delaware, Montana, New Hampshire and Oregon--have no general sales taxes.)

The timing for these holidays is no accident. The average family will spend $606 on back-to-school shopping for K-12 students this year, up from $549 last year, according to the National Retail Federation. In fact, back-to-school is the second-biggest consumer spending event for retailers, behind the winter holidays.

Mississippi kicks off the tax-free shopping season on Friday, July 30, with a two-day period when clothing items costing less than $100--but not school supplies--will be free from the state's 7% sales tax. In August 15 states will hold holidays, generally covering such items as school supplies, clothing costing less than $100 per item and in some cases, computers. In high-income Connecticut, clothing and footwear priced at up to $300 will be exempt from the state's 6% state tax.

Sales tax holidays aren't all aimed at back-to-school shopping, however. In Louisiana, on Aug. 6 and Aug. 7, shoppers can buy all sorts of items, including furniture, costing up to $2,500 free of state sales tax. Then in September, at the start of dove hunting season, the state will offer a special sales tax holiday for hunting supplies. (Guns, ammunition and off-road vehicles, but not hunting dogs, are exempt.) South Carolina also will hold a "Second Amendment" holiday, exempting handguns, rifles and shotguns from sales tax on the Friday and Saturday after Thanksgiving--during deer hunting season

Even As Kids Pack to Go to College, It's Not Too Late For Aid

Earlier today I came across this great USA Today article reminding students and parents that even this close to school season, financial aid is still available for students. The article also offers several helpful tips on how to finance higher education in the tough economy, check it out below.

Few things are more demoralizing than receiving a bill that exceeds the amount of money in your bank account. Especially if your child's future hangs in the balance.

That's the predicament facing many cash-strapped parents of college students as bills for the upcoming semester start to arrive in the mail.

Fortunately, even at this late date, you have options. Among them:

Extended-payment plans. These plans let you pay your tuition bill in monthly installments instead of one lump sum. You'll typically pay a fee of $50 to $100 to set up a payment plan. The plans are provided through colleges and universities, so contact your school's financial aid office for more information.

You don't have to put the entire amount you owe on a payment plan, says Thomas Blair, director of financial aid at Roanoke College in Salem, VA. But paying even a small amount of the balance in monthly installments will reduce the amount you have to borrow, he says.

Federal student loans. Unsubsidized federal Stafford loans are available to all full-time students, regardless of financial need. They carry a fixed rate of 6.8%. For the 2009-10 academic year, dependent students can borrow up to $5,500 for their freshman year. Sophomores can borrow up to $6,500 and juniors and seniors can borrow up to $7,500.

To qualify for a federal student loan, you must fill out the federal Free Application for Federal Student Aid, or FAFSA. You can find the form online at www.fafsa.ed.gov.

PLUS loans. If federal loans won't cover all of your costs, you can apply for a federally guaranteed Parent Loan for Undergraduate Students to fill in the gap. Parents are responsible for repaying the loans, but have the option of deferring payments until the child finishes school. PLUS loans carry a fixed rate of 8.5%.

Missouri Sales Tax Holiday this Weekend

As I blogged about recently, back to school sales tax holidays are happening in states across the country. This weekend nearly a dozen states have their own programs, including: Iowa, Oklahoma, Alabama, Louisiana, Missouri, New Mexico, North Carolina, South Carolina, Tennessee, and Virginia. If you see your state on the list then be sure to check out my blog entry to find out what items are eligible.

KasasCity.com wrote up a helpful reminder of Missouri’s sales tax holiday and have also included information about a few communities in Missouri who have chosen not to participate this yea. Check out their article below.

Missouri’s sales tax holiday will run from 12:01 a.m. Friday through midnight Sunday. During the holiday, certain back-to-school purchases, such as clothing, school supplies and computers, are exempt from sales tax. The sales tax holiday applies to state sales taxes and local sales taxes, if the municipality chooses to participate.

However, several Kansas City area communities have opted out this year, including Claycomo, North Kansas City, Oak Grove, Peculiar, Platte City, Platte Woods, Riverside and Sugar Creek. Those cities will still collect local sales taxes.

Ray County also has opted out.