A guide for parents budgeting for back-to-school expenses

Uganda's economic growth in 2024 is driven by significant investments in the oil sector and promising prospects in coffee exports and domestic consumption. The oil sector, with key projects like the Lake Albert Oil Project and the East Africa Crude Oil Pipeline, plays a central role in attracting investment.

Coffee production is expected to grow, benefiting from government incentives and improved yields. Moreover, private consumption is anticipated to increase, supported by lower inflation and the positive effects of monetary easing by the Bank of Uganda (The Black Examiner).

However, this growth is tempered by notable challenges. The suspension of Uganda’s eligibility under the Africa Growth & Opportunity Act (AGOA) by the United States, and the potential depreciation of the Ugandan shilling, pose risks to the export sector and could increase import costs.

Additionally, the country faces a significant public debt, around Shs90 trillion, which constrains resources for key sectors and may affect the government's ability to finance its budget effectively in the 2024/25 financial year (Monitor).

Given this economic backdrop, parents planning for back-to-school expenses should consider the following recommendations:

Given the current economic uncertainties, such as potential increased costs due to currency depreciation and the AGOA suspension, it's vital to prioritize essential school items like books, uniforms, and school fees.

Creating a list of necessities before shopping can prevent impulse purchases. Planning also involves comparing prices across different stores and taking advantage of back-to-school sales or discounts, which can offer substantial savings.

Investing in durable, quality items may seem costlier upfront but is economical in the long run. For instance, buying a sturdy backpack or durable shoes means they are less likely to need replacing mid-year.

This approach aligns with the concept of 'cost per use', where an item that costs more initially but lasts longer ultimately represents better value.

Second-hand stores, online marketplaces, and community exchanges can be excellent sources for gently used school uniforms and textbooks. This approach not only saves money but also promotes sustainability. Parents can also consider selling or donating items their children have outgrown, creating a beneficial cycle within the community.

With the Ugandan economy facing potential currency fluctuations, it's wise for parents to stay updated on exchange rates as this impacts the cost of imported school supplies. Subscribing to financial news or using currency tracking apps can help parents anticipate and adjust their budgets in response to currency movements.

Many communities have resources that can help offset some educational costs. This includes school-based programs offering subsidized supplies, local NGOs providing educational assistance, and community groups where parents can exchange resources and advice.

Staying connected with local schools and community centers can keep parents informed about available assistance.

Unexpected costs, like field trips, school projects, or extracurricular activities, can strain the budget if not planned for.

Setting aside a small contingency fund as part of the school budget can help manage these unforeseen expenses without disrupting the overall financial planning.

Establishing a savings plan for future educational expenses can relieve financial stress in the long term. This might involve setting aside a small amount each month in a dedicated education savings account or exploring investment options that can grow over time.

Early planning and consistent saving, even in small amounts, can accumulate significantly, easing the burden of future school years.