“The CyberGuy” Kurt Knutsson joins “Fox & Friends Weekend” to discuss the best equipment for students in kindergarten and beyond needs for the 2024-2025 school year.
As summer approaches, parents are preparing their children for the new school year.
But American families are struggling to afford back-to-school items like backpacks, clothes, school supplies and books.
This fight is waging millions of parents carry debt to make sure their children have what they need for school.
FINANCIAL PRESSURES ARE AFFECTING SCHOOL PURCHASES
According to Bankrate’s most recent Back to School survey, nearly one-third (31%) of U.S. adults making back-to-school purchases this year will go into debt to pay for them or have already done so.
Additionally, this type of spending is up from 29% in 2022.
“A collection of common household expenses costs about 20% more than it did three years ago. Going back to school is just another big expense on top of higher prices on almost everything.” (iStock / iStock)
“Honestly, the real balance is probably even higher,” Ted Rossman, senior industry analyst at Bankrate in Pleasantville, New York, told FOX Business.
He said half of credit card holders have already done so credit card debtwhich represents the highest percentage in 4.5 years, and that 6 in 10 credit card debtors have been in debt for at least a year.
“It’s easy to get into credit card debt and hard to get out of it,” Rossman said.
BACK-TO-SCHOOL PURCHASES WILL COST AMERICANS MORE THAN EVER IN A TIME OF INFLATION
“A collection of common household expenses costs about 20% more than it did three years ago. Going back to school is just another big expense on top of higher prices on almost everything.”
What is the cost of having school supplies available?
According to the National Retail Federation, back-to-school costs, on average, for children in kindergarten through 12th grade are about $875.
For the average college student, it’s about $1,365.
According to the National Retail Federation, back-to-school costs, on average, for children in kindergarten through 12th grade are about $875. (Valerie Plesch for The Washington Post via Getty Images/Getty Images)
“These numbers include electronics, clothes, shoes, backpacks and other accessories along with typical school supplies,” Rossman said.
“It’s not all pencils and notebook paper, but it speaks to that cumulative toll and the high cost of parenting.”
How to lighten the cost of going back to school?
Most parents shop sales or look for coupons while shopping for school supplies, but there are more strategies to consider for cutting spending this year.
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Here are some suggestions.
Take stock of what you already have. If you have leftover school supplies from last year and clothes, shoes and backpacks that still fit, there’s no need to buy new ones, Rossman advises.
It may be helpful to stagger spending as your children return to class.
Confirm what is really needed the first day. It may be helpful to stagger expenses as children return to the classroom, experts say.
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Ask a child’s teacher what each student really needs on the first day versus what they can wait for.
“Holding back allows you to spread out your cash flow and take advantage of lower, off-peak prices,” Rossman said.
When a parent finds solutions other than taking on debt, their children will learn a vital lesson that will help them lead financially stable lives. (iStock / iStock)
Make more practical purchasing decisions. Parents who think their kids should have all the accessories, a designer backpack, or other cool items they can’t easily afford may get themselves further into debt trying to be fashionable.
“The pressure on parents and children to have the latest and greatest school equipment is brutal, and there is nothing wrong with wanting to make children happy, but not at any cost,” said Mariana Martinez, a counselor senior in family dynamics at wealth firm Wells Fargo. and investment management group based in Bethesda, Maryland.
“There’s nothing wrong with wanting to make children happy, but not at any cost.”
“There is a better gift you can give your children than the excitement of the moment. Experiencing firsthand the difference between a need and a want and the power to make a decision accordingly.”
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When a parent finds solutions other than taking on debt to make a purchase, their children will learn a critical lesson that will help them lead financially stable lives.
What if you need to use credit cards for school supplies?
With tight family budgets, the use of credit cards has become a reality for most Americans.
Here’s some expert advice on how to use credit cards responsibly.
Get the lowest interest rate possible. If you have credit card debt, Rossman recommends people opt for a card with a generous 0% balance transfer term.
There’s no point in paying a 20%, 25% or 30% APR just to get a couple of percentage points back in premiums, one expert said. (iStock / iStock)
Forget about rewards when you’re in debt. It doesn’t make sense to pay a 20%, 25% or 30% APR just to get a couple of percentage points back in premiums, Rossman said.
Continue to prioritize long-term planning. Paying off credit card debt remains on Americans’ minds.
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To that point, Fidelity’s 2024 College Savings Indicator revealed that 34% of parents place saving to pay off credit card debt among their top savings priorities, just behind saving for college, retirement and emergencies.
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“As parents prioritize their children’s college education, the reality is that balancing everyday expenses with long-term savings can be daunting,” Tony Durkan, vice president and head of 529 relationship management at Fidelity Investments in Boston. .
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“Fidelity encourages parents to save what they can, when they can, with tools like the 529 plan that offers flexibility and tax advantages to improve a family’s ability to save,” he said.