- Nearly one-third (31%) of parents say they are unable to afford back-to-school shopping for their kids this year
- 59% of parents say that due to the high cost of living, they will spend more money on back to school shopping this year compared to previous years
- Roughly one-third (34%) of parents plan to take on debt for back to school shopping, with one-in-six (16%) planning to take on up to $1,000 in debt.
It’s back-to-school season and parents are bracing for financial impact as they begin shopping for their kids’ upcoming school year. With kids heading back to school later this month, some parents may feel relief as many faced high summer childcare costs, yet, the school year comes with its own set of expenses, and it’s sure to leave some parents in the red.
According to a new study conducted by Qualtrics on behalf of Intuit Credit Karma, 59% of parents with children under the age of 18 say that due to the high cost of living, they will spend more money on back to school shopping this year compared to previous years. Higher costs create affordability challenges for nearly one-third (31%) of parents who say they are unable to afford back-to-school shopping for their children this year, which is especially true for young parents – 39% of Gen Z and 37% of millennials, compared to 28% of Gen X and 18% of Boomers.
Affordability challenges aside, parents are willing to go to great lengths to ensure their kids are set up well for the school year. Half (50%) of parents say they plan to sacrifice necessities, such as groceries and bills, to ensure their kids have what they need for the school year, and that jumps to 60% and 56% for Gen Z and millennial parents, respectively.
Debt turns to dread
A whopping 44% of parents are dreading back-to-school shopping this year. Feelings of dread likely stem from the many parents who expect to be in the red after back-to-school shopping – and young parents will be spread more thin. More than one-third (34%) of parents plan to take on debt, such as credit card debt or buy now, pay later loans, to pay for school supplies. This increases to 44% and 38% when accounting for Gen Z and millennial parents.
What’s on shopping lists this school season? Parents plan to spend the most money on clothing and accessories for their kids (44%), followed by groceries and food (17%), school supplies (16%), electronic devices (8%) and after-school programs (8%). Speaking of – after-school programs, such as sports and clubs come with their own price tags, setting parents back even further. One-third (33%) of parents expect to take on debt to cover after-school programs for their kids, rising to 44% of Gen Z and 37% of millennial parents.
How much debt are parents willing to take on to pay for back-to-school expenses? Nearly one-third (31%) of parents are willing to take on up to $500 in debt, while more than one-in-six (18%) are willing to take on up to $750 in debt, and another one-in-six (16%) are willing to reach $1,000. In more extreme cases, roughly one-in-eight (12%) of parents are willing to take on $1,001 to $2,000 in debt, and 4% plan to surpass $2,000.
Nearly one-third (30%) of parents do not have any money saved for back-to-school expenses, which could be why debt is in the cards for so many.
Parents get crafty
To soften the financial blow, parents are turning to sales and second-hand shopping for their kids’ back-to-school needs. More than half (53%) of parents said they planned to shop Amazon Prime Day sales (July 16-17) for their kids’ school supplies, 61% plan to shop at discount stores, such as Dollar Tree or Dollar General, and one-third (33%) of parents will rely on hand-me-downs and/or borrowed items.
Parents make sacrifices for their kids’ education
More than a quarter (27%) of parents with kids in school pay for their children’s education, including private school or tutoring, and that number jumps to 45% for Gen Z parents. Among parents who pay for their children’s education, more than one-third (37%) say they are willing to sacrifice their savings for their children’s education and 20% are willing to sacrifice their retirement savings. Beyond financial sacrifices, parents say they’re willing to sacrifice dining out (51%), going on vacations (47%) and living in an ideal neighborhood (19%).
“Education costs are primarily spotlighted at the college and post-college levels, yet parents are on the hook for school-related expenses as early as pre-K” said Courtney Alev, consumer financial advocate at Credit Karma. “Many parents with young children are likely entering the school year already stretched thin after covering costs for summer childcare, which could be why many parents expect to be in the red after back-to-school shopping this year. If possible, it’s best to avoid taking on high interest debt to pay for back-to-school expenses, especially if you can’t afford to pay it back right away. Luckily, many parents plan to shop sales and lean on family and friends for hand-me-down items, and several states offer tax-free weekends and back-to-school tax holidays that allow parents to shop for select items free of their state’s sales tax, for a select period of time — care.com provides a helpful guide. And, if your child needs access to more costly items such as a laptop, there are organizations and programs that provide free access – StandUp Wireless has a helpful blog post outlining such resources.”
Methodology
This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma between July 19, 2024 and July 28, 2024 among 1,002 adults ages 18 and older.