As the back-to-school season approaches, parents are bracing for the financial impact of preparing their kids for the new school year. With children heading back to school later this month, some parents might find relief after dealing with high summer childcare costs, but the school year brings its own set of expenses, which could leave many in financial trouble.
A recent study by Qualtrics for Intuit Credit Karma reveals that 59% of parents with children under 18 plan to spend more on back-to-school shopping this year due to the high cost of living. Nearly one-third (31%) of parents say they can’t afford back-to-school shopping this year, with the challenge being more pronounced among younger parents—39% of Gen Z and 37% of millennials, compared to 28% of Gen X and 18% of Boomers.
Despite these affordability issues, parents are determined to ensure their children are well-prepared for school. Half (50%) of parents say they intend to sacrifice necessities like groceries and bills to cover back-to-school costs, with this figure rising to 60% for Gen Z parents and 56% for millennial parents.
Debt is becoming a significant concern, with 44% of parents dreading back-to-school shopping this year. Many expect to end up in the red after shopping, and young parents are likely to be hit hardest. More than one-third (34%) of parents plan to take on debt—such as credit card debt or buy now, pay later loans—to cover school supplies, with this number increasing to 44% for Gen Z and 38% for millennial parents.
When it comes to what’s on the shopping list, parents plan to spend the most on clothing and accessories (44%), followed by groceries and food (17%), school supplies (16%), electronic devices (8%), and after-school programs (8%). After-school programs, like sports and clubs, add additional costs, with one-third (33%) of parents expecting to take on debt for these activities, rising to 44% among Gen Z and 37% among millennials.
Regarding the amount of debt parents are willing to incur, nearly one-third (31%) are prepared to take on up to $500, more than one-sixth (18%) are willing to go up to $750, and another one-sixth (16%) are ready to reach $1,000. In more extreme cases, about one-eighth (12%) of parents are willing to incur $1,001 to $2,000 in debt, and 4% are prepared to go beyond $2,000.
Additionally, nearly one-third (30%) of parents have no savings set aside for back-to-school expenses, which likely contributes to their reliance on debt.
