“Cyber Guy” Kurt Knutson appears on “Fox & Friends Weekend” to discuss the best gear kindergarten and above will need for the 2024-2025 school year.
With summer almost over, parents are getting their kids dressed for the new school year.
But American families are struggling to buy back-to-school essentials like backpacks, clothes, school supplies and books.
This struggle Millions of parents Having to go into debt to make sure our kids have what they need for school.
Financial pressures impact back-to-school shopping
Nearly one-third (31%) of U.S. adults making back-to-school purchases this year plan to go into debt or have already gone into debt to pay for them, according to Bankrate’s latest Back-to-School Survey.
And this type of spending is up from 29% in 2022.
“Typical household expenses are about 20% higher than they were three years ago, and back-to-school costs are an even bigger expense on top of nearly every inflationary increase.” (iStock/iStock)
“To be honest, the actual damage is probably even greater,” Ted Rothman, senior industry analyst at Bankrate in Pleasantville, New York, told FOX Business.
He said half of all credit card holders are already Credit card debtThis is the highest rate in the past four and a half years, and six in 10 credit card debtors have had their debt for at least a year.
“Credit card debt is easy to get into but hard to get out of,” Rothman says.
Surging inflation makes back-to-school shopping more expensive than ever for Americans
“Typical household expenses are about 20% higher than they were three years ago, and back-to-school costs are an even bigger expense on top of nearly every inflationary increase.”
How much does it cost to prepare school supplies?
According to the National Retail Federation, the average cost of back-to-school shopping for a child in kindergarten through 12th grade is about $875.
For the average college student, that comes to about $1,365.
According to the National Retail Federation, the average cost of back-to-school shopping for a child in kindergarten through 12th grade is about $875. (Valerie Plesch for The Washington Post via Getty Images)
“This figure includes general school supplies as well as electronics, clothing, shoes, backpacks and other accessories,” Rothman said.
“It’s not all pencils and notebook paper, but it speaks to the cumulative strain and high cost of raising children.”
How can you mitigate back to school expenses?
While most parents shop sales and look for coupons when buying school supplies, there are plenty of other strategies to consider for cutting back on spending this year.
Adults with lemonade stands are squeezing money out of a business model that’s meant to teach kids skills.
Here are some tips.
Appreciate what you already haveRothman said if you have school supplies from last year and still have clothes, shoes and backpacks that work, there’s no need to buy new things.
As kids go back to school, it may be helpful to spread out your expenses.
Make sure you really need it first dayExperts say it may be helpful to spread out spending as children return to school.
Save more money: 10 clever ways to spend less on unnecessary things
Ask your child’s teacher what each student really needs on the first day and what can wait.
“Delaying your purchase allows you to spread out your cash flow and take advantage of lower or off-peak prices,” Rothman said.
When parents find solutions other than incurring debt, their children learn important lessons that will help them lead financially stable lives. (iStock/iStock)
Make more practical purchasing decisionsParents who feel they have to buy their kids fancy items like luxury jewelry or designer backpacks that are hard to afford may end up going into further debt chasing trends.
“The pressure on parents and kids to have the latest, trendiest school gear can be intense. There’s nothing wrong with wanting to make your kids happy, but you shouldn’t do it at all costs,” said Mariana Martinez, senior family dynamics consultant with Wells Fargo’s Wealth and Investment Management group in Bethesda, Maryland.
“There’s nothing wrong with wanting your children to be happy, but you shouldn’t do it at all costs.”
“There is a greater gift we can give our children than the excitement of the moment: the ability to experience firsthand the difference between needs and wants and to make decisions accordingly.”
Beware of back-to-school scams and scammers: What families need to know
When parents find solutions other than borrowing money to make purchases, their children learn important lessons that will help them lead financially stable lives.
What if I need to use my credit card for school supplies?
Tight budgets have made credit card use a reality for most Americans.
Here are some expert tips on how to use credit cards responsibly.
Get the lowest possible interest rateIf you have credit card debt, Rothman advised choosing a card that offers a generous 0% balance transfer period.
One expert said it doesn’t make sense to pay 20%, 25% or even 30% annual interest to get a few percentage points in return. (iStock/iStock)
When you are in debt, forget about rewards. Rothman said it doesn’t make sense to pay 20%, 25% or even 30% annual interest to get a small percentage point in return.
Keep your long-term plans a priority. Paying off credit card debt remains at the forefront of Americans’ minds.
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In that regard, Fidelity’s 2024 College Savings Index revealed that 34% of parents rank saving to pay off credit card debt as their top savings priority, behind saving for college, retirement and emergencies.
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“Parents prioritize their children’s college education, but the reality is that balancing day-to-day expenses with long-term savings can be a challenge,” Tony Durkan, vice president and head of 529 relationship management at Fidelity Investments in Boston, told FOX Business.
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“Fidelity encourages parents to save as much as they can, when they can, with tools like 529 plans that offer flexibility and tax benefits that enhance families’ savings power,” he said.
