Back-to-school shopping is an annual event that many families look forward to, but for a significant portion of Americans, it can also be a source of financial stress. According to a recent poll, about a third of Americans are expected to go into debt due to the costs associated with back-to-school shopping. This statistic highlights the financial strain that many families face, especially in light of rising prices for essentials like groceries and housing.
The Bankrate poll, which surveyed over 2,300 adults in July, found that 31 percent of shoppers anticipate going into debt to purchase school supplies. This sentiment was echoed in a study by Intuit Credit Karma, which revealed that 31 percent of parents cannot afford back-to-school shopping, with 34 percent planning to take on debt to cover the expenses. These findings underscore the financial challenges that many families are grappling with as they prepare for the upcoming school year.
Despite the high number of Americans expecting to go into debt for back-to-school shopping, adults reported that the burden was less severe compared to the previous year. While inflation rates have been fluctuating, prices have shown a downward trend in recent months. This slight reprieve in prices may provide some relief to families as they navigate the costs associated with preparing their children for school.
However, the costs of back-to-school shopping can still add up quickly. For families with children in elementary through high school, the average predicted cost of supplies was $874.68, a slight decrease from the previous year. Additionally, a report from WalletHub revealed that 75 percent of parents feel pressured to buy excessive items during back-to-school shopping, further adding to the financial strain.
To alleviate some of the financial burden, there are several strategies that families can employ. According to the Bankrate survey, 28 percent of school shoppers plan to look for deals and coupons, while 21 percent intend to purchase cheaper brands. Some families are opting to buy fewer supplies to cut costs, with 19 percent planning to scale back on purchases due to high prices.
Financial experts emphasize the importance of planning and budgeting for back-to-school expenses to avoid falling into debt. Alex Beene, a financial literacy instructor, advises families to create a six-month plan for future expenses, set aside cash to cover these costs, and develop a strategy for managing outstanding debts. By taking a proactive approach to financial planning, families can better navigate the expenses associated with back-to-school shopping and avoid accumulating unnecessary debt.
In conclusion, while back-to-school shopping is an exciting time for many families, it can also be a source of financial strain for a significant portion of Americans. By implementing cost-saving strategies and prioritizing financial planning, families can better manage the expenses associated with preparing their children for the upcoming school year.
