Crossing the back-to-school bridge

Stacy-Ann Smith, Contributor

THE SUMMER holiday is winding down and for most students, the start of the 2011/2012 school year is days away. In about a week, school gates across the country will open and thousands of students will pour into classrooms, eager to learn, make new friends and re-unite with old ones. But before those school bells ring, there's the all important back-to-school preparations which parents need to complete.

Whether your child is heading to pre-school or pre-law, getting them ready for the new school year can be stressful, not to mention expensive. From books and school supplies to medical exams, khakis to six-digit school fees, your back-to-school checklist is likely to be long with a hefty price tag. Recently published results from the Consumer Affairs Commission's survey of book prices only served to confirm what shoppers already suspected - higher prices on items that are not optional. Parents who haven't secured all the items on their checklist, still have time to make those purchases. For many people, however, it isn't just a matter of time, but money as well.

Plan and budget

Money managers recommend that you plan and budget for back-to-school expenses as you should for any other kind of expenditure. Manager of the Kingston branch of Capital & Credit Merchant Bank Owen Ferguson urges parents to incorporate back-to-school expenses in a broader financial plan. "It can't be over emphasised how important it is to have a good financial plan." Ferguson is encouraging parents to plan at least a year in advance, setting aside small amounts towards back-to-school expenses for the year to come. "You would have already recognised that come the end of August, early September, you have this major expenditure and you would, therefore, build the kind of resources that you will need to address the issues at that time. It's a question of saving consistently over the preceding year," he explains.

Besides forward planning, Ferguson suggests a detailed budget to ensure that all the necessary purchases can be made. It's important that you spend time crafting your budget being careful to include all the expenses. Items that get left out can, in fact, throw your budget off if you haven't taken even minor things into consideration. "Expenses like transportation and even something like credit for your child's phone, as small as these may be, they can add up."

You may find, however, that once you've done a budget and despite all your carefully laid plans, the back-to-school expenses are greater than your pocket can match. In that event, Ferguson says the Capital Payroll Bridge can help you cross it. "For someone who is employed and has a regular salary, and who just needs a little assistance at this point, you can get unsecured lending up to a half a million dollars, no collateral, and no guarantor, very easy," disclosed Ferguson. "We try to turn around these loans in a day and a half."

The loan term is one year, and payments are made via salary deduction. Capital & Credit customers also have another very affordable option - the Capital Loan Plan. Ferguson explains that this option is available for CCMB customers who have accumulated funds against which they can borrow. Depositors may borrow up to 90 percent of their accumulated balance and repay at interest rates as low as 8.5 per cent. Whether you go the route of the Capital Loan Plan or the Capital Payroll Bridge, the CCMB executive says the team strives to process the loan in a matter of days to ensure maximum convenience for clients who have little time and a whole lot of shopping to do. Once you've gone through your back-to-school checklist for this year, and the children are settled, Ferguson recommends that you start the process for next year as soon as possible. "Get a head start. Begin with a budget, and remember that we can help."

Get the help you need online, in print and on air through The Gleaner series Getting & Staying Financially Fit. From now until the end of the year, the team at Capital & Credit will be at your service, providing the information you need to whip your finances into shape.

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