Back To School Shopping Tips

If you don't already have a membership at a big warehouse store, consider getting one. The savings from back-to-school sales and the benefits of sales tax holidays can make the membership fee worthwhile.

Avoiding The Debt Trap

Regardless of sales tax holidays, you must determine your budget without relying on credit cards. Make a list of essential items your kids need for the school year. If your budget doesn’t cover everything, prioritize purchases and buy only what you can afford now.

While using credit cards to buy everything at once might be tempting, the high interest rates—now averaging around 22%—make this a costly option. It’s better to save on sales tax for some items now and purchase the rest with cash later, avoiding credit card debt.

Retailers will tempt you with promotions and sales, but not all items may be tax-exempt during the holiday period. Stick to your pre-determined list to avoid impulse purchases and unnecessary spending.

Planning carefully and taking advantage of sales tax holidays allows you to make the most of your back-to-school shopping without falling into debt.

On Today’s Program, Rob Answers Listener Questions:

• My son has back taxes he owes and was looking for tax relief possibilities. He found a company that advertises on national TV, claiming they have saved over a billion dollars in tax dollars for individuals and helped close to 72,000 people. The company's website shows that it has a good rating with the Better Business Bureau and is a member of the NAATP. My son was persuaded to sign up with them, make three upfront installments with his credit card, and give them power of attorney to represent him to the IRS. As we looked into the company further, we found that the reviews indicate they rarely obtain any tax relief or assistance for their clients, despite their claims. I'd like to know whether my son should continue with this company or if he has gotten into a bad situation that will just be a costly lesson learned.
• My husband and I have a real estate opportunity. A gentleman from our church has a disabled friend who is about to be taken from his home because he has no money and owes about $2,600 in back taxes. The gentleman wants to know if we would put our name on the deed with his friend and let him live the rest of his life there, with us paying the taxes. What would the tax implications be for us in this situation?
• I have a whole life insurance policy I've had for over 30 years, closer to 40 years. I'm retired now and have money built up inside the policy. It's set up so I could take a loan against it, but I don't see myself doing that. My children are grown, and I've heard that I could potentially sell this policy or just turn it in and get rid of it. I'm hoping you can provide some insight on the best way for me to use or get rid of this policy.
• I'm 38, single, and recently lost my good-paying job. I'm trying to figure out what to do with my house. I'm thinking about selling it and getting rid of the whole thing, as I'm running out of room. I'm looking for some wisdom and advice on how to proceed.

Resources Mentioned:

• NerdWallet
• Rich Toward God: A Study on the Parable of the Rich Fool
• Find a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)
• FaithFi App