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Amid the back-to-school shopping season, a new survey reveals that many parents are bracing for the financial impact as they shop for their child’s school supplies and other necessities.
The finance company Credit Karma conducted the survey online in mid-to-late July, surveying more than 1,000 U.S. adults.
The company found that nearly one-third (31%) of parents said they are unable to afford back-to-school shopping for their kids this year.
In addition, 34% of parents said they plan to take on debt to afford it, and 16% said they plan to take on up to $1,000 in debt.
FILE: A store's school supplies. (Credit: Lindsey Nicholson/UCG/Universal Images Group via Getty Images)
The inability to afford back-to-school shopping is especially true for young parents – 39% of Gen Z and 37% of millennials.
"Education costs are primarily spotlighted at the college and post-college levels, yet parents are on the hook for school-related expenses as early as pre-K" said Courtney Alev, a consumer financial advocate at Credit Karma. "Many parents with young children are likely entering the school year already stretched thin after covering costs for summer childcare, which could be why many parents expect to be in the red after back-to-school shopping this year.
Affordability challenges aside, parents said they are willing to go to great lengths to ensure their kids are set up well for the school year. Half (50%) of parents said they plan to sacrifice necessities, such as groceries and bills, to ensure their kids have what they need for the school year, and that number jumps to 60% and 56% for Gen Z and millennial parents, respectively.
Tips to afford back-to-school shopping
To soften the financial blow, parents revealed they will be on the lookout for sales and second-hand shopping for their kids’ back-to-school needs. More than half (53%) of parents said they planned to shop Amazon Prime Day sales (July 16-17) for their kids’ school supplies, 61% said they plan to shop at discount stores, such as Dollar Tree or Dollar General, and one-third (33%) of parents said they will rely on hand-me-downs or borrowed items.
RELATED: Parents say schools asking too much for back-to-school supplies: Survey
"If possible, it’s best to avoid taking on high interest debt to pay for back-to-school expenses, especially if you can’t afford to pay it back right away," Alev continued. "Luckily, many parents plan to shop sales and lean on family and friends for hand-me-down items, and several states offer tax-free weekends and back-to-school tax holidays that allow parents to shop for select items free of their state’s sales tax, for a select period of time."
Credit Karma said care.com provides a guide. If a child needs more costly items such as a laptop, Alev said there are organizations and programs that provide free access, noting that StandUp Wireless has a blog post outlining such resources.
Parents say they will spend more on back-to-school shopping this year
Due to the current high cost of living and ongoing inflation, 59% of parents said that they will spend more money on back-to-school shopping this year compared to previous years.
Parents said they plan to spend the most money on clothing and accessories for their kids (44%), followed by groceries and food (17%), school supplies (16%), electronic devices (8%) and after-school programs (8%).
RELATED: Here's how much parents spend on average for back-to-school supplies
According to another study from July, parents nationwide spend an average of $701 per child, per year, on back-to-school items. This figure includes everything from clothing to basic supplies to class-specific items.
The highest-spending states for the back-to-school season were found to be New York ($1,123), Florida ($1,095), and California ($1,078), according to the survey.
This story was reported from Los Angeles.