With the rising cost of living continuing to be a major issue for Americans across the country, it should come as no surprise that back-to-school spending looks to be a major expense leading up to the school year.
A new survey conducted by Qualtrics on behalf of Credit Karma surveyed more than 1,000 U.S. adults aged 18 and older and found that nearly 60 percent of parents with children under the age of 18 said that they will “spend more money on back-to-school shopping this year” versus previous years.
Notably, 60 percent of Gen Z parents and 56 percent of Millennial parents surveyed said they will sacrifice spending on their necessities such as groceries or bills to make sure their children have their school-year needs.
As for the major expenses parents will be spending on this year, clothing and accessories top the list (44 percent). Groceries and food (17 percent), school supplies (16 percent), electronic devices (8 percent) and after-school programs (8 percent) don’t even come close to the anticipated amount of spending on clothing and accessories.
To alleviate the financial burden, shoppers surveyed said they are turning to sales and secondhand shopping for their kids’ back-to-school spending. Fifty-three percent of parents said they shopped during Amazon’s Prime Day sales for school supplies, 61 percent plan to shop at the likes of Dollar Tree or Dollar General discount stores and 33 percent said they rely on hand-me-downs or borrowed items.
Research by 84.51°, a retail data science, insights, and media company, similarly found in its “Real Time Insights” that 52 percent of consumers plan to reuse items from last year. Moreover, 51 percent of parents noted that they are “cutting back” on spending on supplies.
And when it comes to where shoppers are buying, 84.51° found that e-commerce has become the one-stop shop for school purchases.
Notably, Credit Karma research found that 33 percent of parents who pay for their children’s education — including private school or tutoring — are willing to sacrifice their retirement savings. And beyond dipping in their savings, parents said they will forgo eating out (51 percent), going on vacation (47 percent) and living in their preferred neighborhood (19 percent).
“This year, many parents are willing to go to great lengths to ensure their kids are set up well for the school year, but for some that comes with the feeling of dread knowing that their back-to-school shopping expenses may put them in debt,” said Courtney Alev, consumer financial advocate at Credit Karma. “Credit Karma’s data showed that parents plan to spend the most money on clothing and accessories for their kids this year, and many may prioritize their kids’ wants over any necessities.”
