According to report, 31% of famillies are going into debt to pay for back-to-school shopping!
A recent Bankrate survey revealed that 31% of U.S. adults doing back-to-school shopping expect to go into debt to cover expenses. The survey, conducted in July, included over 2,300 adults. The report highlighted that 24% of them used/will use credit cards and carry balances over time and 13% used/will use buy now, pay later services.
On top of that, a report by Intuit Credit Karma found that 31% of parents are struggling to afford back-to-school shopping, and 34% expect to take on debt to pay for supplies. This survey, carried out last month, involved more than 1,000 adults.
Rising costs are are a big reason why families are feeling this way. Prices for back-to-school essentials, such as backpacks, have gone up, according to inflation data from the producer price index, which tracks manufacturing costs. 32% of the Bankrate’s report respondents say that inflation did/will change the way they shop. In addition to that, according to a WalletHub report, over 75% of parents feel schools ask them to buy too much during the back-to-school season.
Families with kids in elementary through high school are expected to spend an average of $874.68 on school supplies this year, according to the National Retail Federation (NRF). That’s only slightly less than last year’s record of $890.07. In total, back-to-school spending, including college students, is expected to hit $38.8 billion this year, the second highest on record, following last year’s $41.5 billion.
Tips For Saving On Back-To-School Shopping
Andrea Woroch, a consumer savings expert, suggests families look for gently used clothing, sports gear, school supplies, and certified-refurbished electronics on resale sites. She also advises using price-tracking tools or apps and applying coupon codes to help cut costs.
If buying new, Woroch recommends stacking discounts. For example, combine credit card rewards with store coupons and cash back offers. You can find deals like 50% off with 2% cash back at Old Navy or 20% off with 1.5% cash back at Office Depot.
Lastly, take a look around your own home before heading out to shop. Woroch advises repurposing items like partially used notebooks, gathering leftover markers and crayons, and refreshing last year’s backpack and lunchbox.