The back-to-school rush is always full of chaos, and it’s easy to overlook some of the important things. One thing you shouldn’t forget to do this year? Start an emergency fund. Most financial experts suggest that you have an emergency fund worth three to six months of your yearly living expenses. But you may want to consider starting an additional, smaller fund for those pesky expenses that might pop up during the school year, staying prepared for anything.
Why A School Year Emergency Fund is Important
Though you likely already have an emergency fund or have budgeted for school-related expenses, situations can arise where you might be left feeling uncertain. With all of the additional activities that your children are doing during the school year, it’s a good idea to be prepared for any situation.
Common Needs for an Emergency Fund
• Sports-Related Injuries: Whether it’s a contact sport or not, injuries related to sports can happen. Injuries can include sprained wrists, broken bones, concussions, torn ACLs (Anterior Cruciate Ligament), etc. Your child might need doctor’s visits, hospital stays or even surgeries. Braces, boots, casts, crutches or wheelchairs could be necessary.
• Sports Travel: Congratulations! Your child’s team has advanced to the district, regional, state or even national competition for their sport. But now you’ll have to think about travel expenses — hotels, gas or plane tickets and meals outside of your home.
• Vehicle Repair: If your child drives themselves to school, you may not have factored in any repairs that may need to be done on any additional vehicle. Teens also can be more careless, causing the risk of accidents to increase. A parking lot fender bender can be an unexpected expense, and you won’t want to be caught off guard.
• School Holidays: While you’re likely fully prepared for the additional childcare that summer requires — summer camps, trips to stay with grandparents, etc. — you may not be thinking about the holidays in between. Childcare might be necessary for extended holidays like the Thanksgiving and winter breaks.
• School Lunches: Sometimes, you forget to go grocery shopping — or you just forget that one key component of your child’s lunch routine. Having some cash on hand for the days where packing lunch just isn’t possible will help you and your child get through the day stress free (even when things don’t go according to plan).
• Testing Practice/Tutoring: Maybe your child is struggling in a particular subject or is having trouble or anxiety about SATs or ACTs. Considering an investment in your child’s future through a tutor or a testing course can make a big difference. However, you might not anticipate this difficulty for your child and an emergency fund can help remedy this unexpected expense.
• Project Supplies: Your child has been assigned a big project. Now all you can think about is the cost of the additional materials and supplies you’ll need to purchase. Whether it’s multimedia art supplies or visual aids for presentations, you’ll want to make sure that you have the resources to help them succeed.
No matter what, having an emergency fund can make a big difference when trying to support your child’s education and interests without stress instead of feeling torn while trying to stay within your budget. An emergency fund specifically centered around your child’s education can go a long way. And if you don’t end up using it? Roll it over into a college fund!