Tips for Back-To-School Shopping

Now is the time that many people are shopping for back-to-school (BTS) items. Below are seven questions that I answered about BTS shopping for a Twitter (X) chat about this topic:

What should you factor into your back-to-school (BTS) budget?

¨   Spending categories such as clothing, shoes, electronics, supplies, and miscellaneous items

¨   Things may cost more than you think; add a fudge factor to your budget for the unexpected

¨   Not everything that is needed is needed all at once; try to spread expenses over 2-3 months

 

 How can you offset rising cost of school supplies this back-to-school shopping season?

¨   If money is tight, you may qualify for a free backpack of BTS supplies from a local non-profit

¨   Some states have state sales tax holidays to buy school supplies during a certain time period

¨   Consider buying clothing, shoes, and perhaps electronics and school supplies (e.g., notebooks) at a thrift shop

 

 How do you set priorities for back-to-school supplies to stay on budget?

¨   Determine a maximum spending cap and cut out what you can’t afford

¨   Ask yourself “What is the worst thing that can happen if I don’t buy [name of item]?

¨   Develop three expense categories: essential, desirable, and optional; buy things accordingly

 

How can people effectively navigate back-to-school sales?

¨   Find out if your state has a sales tax holiday and shop then

¨   Compare prices from at least 3 vendors and look for online sales codes that save money

 

Where can you find free back-to-school supplies?

¨   Non-profit organizations that distribute free backpacks, notebooks, pencils, and other supplies

¨   Schools and school districts may have sponsored programs that provide school supplies

¨   Churches may organize backpack events and clothing swaps to support local families

¨   Family members and friends may have usable hand-me-down clothing and school supplies

 

How can you avoid impulse spending when back-to-school shopping?

¨   Set a firm back-to-school budget and make a shopping list of expenses in priority order

¨   Shop with cash or a debit card so there is a definite limit on the amount that you can spend

¨   Plan ahead and shop early to take advantage of sales tax holidays (if available) and avoid “panic buying”

 

Any final tips for navigating back-to-school shopping?

¨   Avoid paying full price for anything. Identify inexpensive vendors and cost-saving opportunities

¨   Delay non-essential purchases until later in the school year when you have more financial flexibility

¨   Try a “no shop for food week” and use food in your pantry/fridge/freezer; use the money saved on food for back-to-school expenses

One final thought...even if you have no need to shop for a student, consider taking advantage of state sales tax breaks (if available) for yourself to buy tax-exempt clothing, electronics, and office supplies. I have been doing this for the past three weeks with the August BTS sales tax exemption in Florida.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

A Personalized OBBBA Assessment

 

One of the benefits of being a professional financial educator is the ability to use knowledge and skills gained through professional development experiences and work projects to enhance my own personal finances. I started my financial education career 50 years ago and it has proved invaluable personally as a resource to gradually build wealth. Knowledge is, indeed, power!

Case Example: OBBBA

A recent example of how my financial education career intersects with my life was the need to quickly digest the content of the 900+ page One Big Beautiful Bill Act (OBBBA) that was signed into law on July 4. Several clients wanted written content about it and class slides needed to be updated. To be clear, the word “beautiful” is not a personal opinion but part of OBBBA’s title.

OBBBA Resources

To gain needed background information, I collected articles about OBBBA and also went to the ultimate source of information about legislative changes related to personal finance: Kitces.com. Nobody provides a better summary and analysis of legislation than this talented team of financial researchers and writers. Their work is truly outstanding, including analyses of the 2017 Tax Cuts and Jobs Act (TCJA) and the SECURE and SECURE 2.0 acts affecting retirement planning.

Personal  OBBBA Applications

As I delved into the details about OBBBA, I started to think about its application, personally, for the income taxes I file jointly with my husband (i.e., mfj). At the end of a blog post for one client, I encouraged readers to do a personal OBBBA analysis to inform their future financial plans. OBBBA is a very wide-ranging piece of tax legislation that will affect individuals and families at different ages, income levels, and lifecycle stages very differently. Below is an example:

Three Key OBBBA Impacts

After studying up on OBBBA, I concluded that I will be positively affected in three main ways:

Extension of TCJA Tax Rates and Tax Brackets- The seven marginal tax rates (10%, 12%, 22%, 24%, 32%, 35%, and 37%) currently in effect were made permanent instead of increasing to 2017 levels if the TCJA had been allowed to expire.

Higher Standard Deduction- OBBBA increased the 2025 standard deduction to $31,500 (up from $30,000) for married couples filing jointly (mfj). In addition, as a couple both age 65+, my husband and I get an additional $1,600 apiece for a total standard deduction in 2025 of $34,700.

 

Charitable Deduction for Non-Itemizers- Like about 90% of American taxpayers, we have not itemized deductions since TCJA took effect in 2018. Starting in 2026, OBBBA will introduce a new cash-only charitable contribution deduction for non-itemizers: $2,000 for mfj.

 

Irrelevant OBBBA Features

I also concluded that there are a lot of OBBBA features that do not pertain to me personally. I am ineligible for the new senior tax deduction, pay less than $4,000 in SALT tax (there is no state income tax in Florida!), do not work for tips, and do not work overtime for an employer. In addition, I do not have minor children or a home mortgage and have no plans to buy a new car.

Bottom Line

Take the time to do an OBBBA analysis for your own tax filing status (e.g., single, mfj). Then convert what you learn into financial action steps. For example, you may need to adjust your tax withholding during the remaining months of 2025. You cannot expect your employer, the Social Security Administration, or other entities that withhold taxes to make any automatic changes to your withholding.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

An Analysis of Cash in Financial Management

 

I recently read an article in the May 2025 issue of the AAII Journal titled “The Role Cash Plays in Individual Investors’ Portfolios.” The article described a study of cash allocations in the portfolios of AAII (American Association of Individual Investors) members. 

The study found that cash allocations of 5% to 10% were most common (27%) but almost 1 in 5 (19%) allocated more than 30% of their portfolios to cash and 16% allocated less than 5%. Definitely, a wide variance in responses!

The study also found that 76% of the respondents placed their portfolio cash into money market funds, followed by brokerage sweep accounts (40%) and certificates of deposit or CDs (34%). Their top three reasons for holding cash were to fund future buying opportunities (53%), as protection against market downturns (51%), and to fund ongoing withdrawals such as retirement income (43%).

Reading this article got me thinking about different ways that cash- both cash assets (e.g., money market funds, CDs, and high-yield savings accounts) and actual physical cash (coins and bills)- are used in financial management. Below are five Barbservations:

Emergency Fund- Standard advice is to accumulate three to six months of essential living expenses in liquid savings. Unfortunately, 1 in 5 Americans have no emergency savings and 37% can’t afford an unexpected expense over $400 according to research by Empower. Nevertheless, it is best to save as much as you can when you can. Life happens and any emergency savings is better than none.

Buffer Account- Respondents to the AAII study, especially retirees living off investment withdrawals, reported having three to five years of living expenses not covered by guaranteed income sources (e.g., pension, Social Security) in a cash buffer account. Not an emergency fund, this money is intended to be used for income withdrawals to avoid tapping stocks during a market downturn.

Cash Discounts- Shoppers and diners can be incentivized to pay for things with cash. For example, gas stations often charge a lower price for cash purchases and some restaurants do the same. It is also not uncommon to see people make deals with contractors to get a discount for paying for home improvements with cash or credit cards are simply not accepted. Example: Viking Cruises offers a 3.3% discount if you pay for a cruise with an e-check (electronic debit to your checking account).

Credit Card Surcharges- It seems like more vendors these days are adding surcharges for purchases made with credit cards. This is another incentive to pay bills with cash. Vendors are trying to avoid the merchant fees they are charged whenever customers pay with a credit. These fees typically range from 1.5% to 3.5% of the transaction amount. I recently had lunch at a restaurant that was adding a 4% surcharge for bills paid with credit cards. I whipped out cash to pay my tab.

Parking Spot- Cash assets are useful when people have money in transition. Think required minimum distribution (RMD) withdrawals, inheritances, settlements, life insurance proceeds, and more. Of course, cash assets should always provide an attractive interest rate. Money can be placed there until long-term decisions are made about what to do with the cash.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

Five Years of Flipped Switches: Thoughts About Later Life Transitions

 

Sunday, August 3, 2025, is a significant date for me. It is the fifth anniversary of the publication of my sixth book, Flipping A Switch, which describes 35 common transitions that people make in later life. Except for laws with acronyms like SECURE 2.0 and OBBA and annually inflation-indexed numbers related to income taxes and Social Security, the book is current and evergreen.

 In honor of the book Flipping A Switch’s fifth birthday, below are eight key take-aways:

 

Acknowledge a Mindset Shift- Recognize that retirement involves switching from savings mode (accumulation) to spending mode (decumulation), both mentally and financially. This can be very difficult to do for “super savers” who have seen their account balances grow for decades.

 

Give Yourself Permission to Spend- Allow yourself to enjoy the nest egg you built, especially during the “go-go” years (age 65-74) of early retirement. Withdrawing your own money is not the same as a loss due to a stock market downturn. If you don’t spend you money, someone else will.

 

Structure Your Income Stream- Set up a system for regular asset withdrawals to manage cash flow, pay bills, and reduce stress. Ways to do this include purchasing low-expense annuities, creating a bond or CD ladder, and setting up mutual fund automatic withdrawal plans.

 

Review Your Budget- Adjust your spending plan (budget) to reflect new patterns in retirement. Some people have more income than when they were working, when multiple income streams are combined, and some people have less. Health care and leisure costs often increase in later life.

 

Redefine Your Purpose- Engage in activities that provide meaning and structure to your day. For example, part-time work, physical activity, volunteer activities, adult education classes, creative pursuits, a hobby, family care-giving, participation in organizations, and/or an encore career.

 

Manage RMDs- Understand when and how to take required minimum distributions, which are described an “the mandatory flipped switch” in the book. Also create a tax-efficient withdrawal plan by coordinating withdrawals from tax-deferred, tax-free, and taxable (brokerage) accounts.

 

Don’t Downplay the Non-Financials- Know that financial changes like drawing down savings or taking RMDs are only part of the picture. Lifestyle shifts (e.g., new routines) and social transitions (renegotiated roles with family and new community ties) are equally important.

 

Be Flexible- Revisit and revise your retirement lifestyle over time. No plan lasts forever. Adapt to unexpected events like inflation, illness, or stock market volatility. Review your investments regularly and rebalance your portfolio to reduce risk.

 

In summary: Before you retire, you worked hard. Give yourself permission to spend your savings and enjoy the fruits of your labor with confidence and peace of mind.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

Windows 10 Support is Ending: What Do You Do?

 

I recently attended a computer club class about the impending end of support (e.g., security updates and patches) for Windows 10 by Microsoft on October 14. Below are key takeaways for anyone (myself included) who still uses a computer with a Windows 10 operating system:

Increased Vulnerability- After support for Windows 10 ends, there will be no further security updates. Anyone still using Windows 10 will be more vulnerable to hacks. Unfortunately, there are many bad actors out there. Windows 11 is more secure than Windows 10 and less subject to hacks. It is expected to be supported well into the future but Windows 12 is also on the horizon.

 

Ability to Update to Windows 11- An older computer with Windows 10 must be capable of running Windows 11. Many are not. To find out if your computer can run Windows 11, download and run the PC Health Check App. I used the app with my nine-year old computer and it failed. It was missing hardware called Trusted Platform Module (TPM) and had an older processor. I have two Windows 11 computers and just need to invest some time transferring bookmarks and files.

 

Windows 10 Cautions- If you continue to use a Windows 10 computer after October 14, do NOT do any financial transactions on it. Hackers out there will know that your computer is vulnerable and can steal data to access bank, brokerage, and other accounts. Also, spend the money for a high-end anti-virus program such as Malwarebytes, McAfee, Norton, or Bitdefender™.

 

Windows 11 Benefits- As a result of its enhanced security benefits, as noted above, Windows 11 computers can provide peace of mind. Windows 11 should also improve the performance of your computer and the AI platform CoPilot is included.

 

Buying a New Computer- The program speaker recently purchased a desktop and a laptop and each cost around $650 before adding sales tax, anti-virus protection, and extended warranty protection. There are freelance tech consultants and store personnel (e.g., Best Buy’s Geek Squad) that can assist with file and program transfer services, including hooking up a new computer to a wireless network and wireless printers.

 

New Computer Configurations- Recommended minimum configurations for a new computer are as follows: an Intel Core i5 (or equivalent AMD Ryzen) processor, 16 GB of memory (RAM), a 512 GB solid state drive (SSD), and, of course, a Windows 11 operating system.

 

Disposing of an Old Computer- Attendees seemed to think that the old (Windows 10) computer should simply be destroyed. The speaker recommended smashing the hard drive or drilling holes in it and acknowledged that some folks simply throw old computers out with their trash. The much more environmentally friendly disposal method is taking it to a recycling center. I am not planning to do any of these. Instead, I will simply keep my Windows 10 computer. It will not be connected to the internet going forward but will serve as a back-up repository of files and photos, if needed.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.