The end of the summer has arrived and the spending forecasts assail the media with disparate figures, but they illustrate the exceptionality of the moment. One of them, that of the OCU, which indicated at the end of 2021 that the average spending of Spanish families would rise to 1,890 euros per child for the start of the last school year. The return to school and a new work year ask for a step at a time of record inflation. In this context, how can we reduce spending?
The summer may have taken its toll and it is necessary not to rush back to school without an expense strategy adjusted to this possible new scenario that is still convalescing. What we are looking for precisely is to clean up and identify those expenses that suppose a greater shock in the balance of accounts. As Manuel Morales, Strategy and Product Director of Global Financial Health at BBVA points out: “It is necessary to anticipate income and expenses as far as possible through a budget. Identifying what we spend the most money on helps us make decisions that help reduce them.”
Going back to school has always been associated with that characteristic ‘smell’, the smell of new: new textbooks, new notebooks, clothes, etc. The list is long and varies according to ages, school years and families. But before deciding if it is necessary to buy any item on the list, take stock of what is in the house and identify which are the most urgent needs and which are the whims or purchases that can wait.
Both to reduce spending and to promote a more sustainable use of textbooks, there are different networks of book banks throughout the territory. These initiatives arise from voluntary collaboration and provide families who wish to access books / curricular materials according to equitable criteria to ensure optimal distribution. It is an economic and ecological option to access this material.
From the mobile, through the Internet or electricity to subscriptions to video, sports, music platforms… Does the contracted rate adjust to the needs and the consumption carried out proportionally? September can be the perfect month to spend a little time reviewing the services that the family has contracted and to study offers or find out if there are discounts that allow us to reduce that essential fixed expense.
Technology has taken over school supplies as the largest expense: laptops, headphones, tablets, smartwatches, etc. But nobody said that it had to be imperative to acquire it in the month of September or that it had to be new. We can put into practice a more responsible consumption and acquire second-hand gadgets, promoting reuse. Or, wait for special days when offers are the order of the day, such as Black Friday or the already consolidated ‘days without VAT’, or, why not, leave it in the hands of the Three Wise Men.
Manuel Morales, from BBVA, defines ant expenses as “those small amounts of money that are spent almost daily and that, being considered insignificant, are not included in any budget.” Those extra cents, that snack that could be a homemade sandwich, etc. Like ants, isolated they have the ability to go very unnoticed, but added throughout the course they represent a ‘marabuntum’ of expense that we can do without without significantly altering our lives.
The price of fuel is not enough to go round and round trying, with luck, to park in the second row or endure terrible traffic jams. Neither is the planet. Is it possible to define a new route to school or work using public transport or other means such as electric bicycles? If the location does not allow it, it is always possible and highly recommended to share trips in a private vehicle with neighboring families or co-workers who share our route or part of it. Climate change and your pocket will thank you.
After establishing a budget and a point of financial situation, it is important that we establish a savings plan and respect it. The important thing is to work on our financial health by establishing guidelines that help us create a savings routine that does not have to involve large amounts. There are many domestic micro-saving strategies within our reach. A very effective one is to take advantage of the rounding of the purchases that we make with a card and that for some time now have been so common, even in small amounts. For example, the BBVA app “allows you to automatically insert the remaining cents from each purchase made into a second account,” highlights Manuel Morales, from BBVA.
