31% of parents will take on debt for back-to-school shopping, survey finds

Annual US inflation drops to 3-year low

Economist Dr. Mike Walden joins LiveNOW's Austin Westfall to break down the latest Consumer Price Index report, which shows that annual inflation has fallen to a three-year low.

Amid the back-to-school shopping season, a new survey reveals that many parents are facing financial impacts as they shop for their child’s school supplies and other necessities.

For some, that struggle is leading to carrying debt.

"We’ve noticed already that back-to-school shopping this year is more expensive compared to previous years," Natalie Kotlyar, a national practice leader of BDO's retail and consumer products industry group, told FOX Television Stations. "Despite inflation cooling, it is still a key factor in driving up prices, with June’s inflation data showing a year-over-year increase of 3.0%."

The study, conducted by Bankrate, found that nearly one-third (31%) of U.S. adults doing back-to-school shopping this year are going into debt, or already have, to pay for it. This is 2% higher than Bankrate’s previous 2022 survey on back-to-school shopping.

Parents shop for back to school supplies using school issued supply list. (Credit: Lindsey Nicholson/UCG/Universal Images Group via Getty Images)

According to the findings, this number includes 24% of people who are using or plan to use credit cards to paying the balance over time, and another 13% who are using or plan to use buy now, pay later services.

Bankrate also found that parents are trying to save money this year, with 46% of back-to-school shoppers saying that they will implement money-saving strategies this year, including 28% who have sought or will seek out more deals or coupons than in the past.

While inflation persists, Bankrate found that is having a smaller impact since 2022. They found that 32% of back-to-school shoppers said inflation changed or will change the way they shop this year, down from 41% in 2022.

Nearly one-third of parents are unable to afford back-to-school shopping

This survey backs up other recent studies which have highlighted the financial impact for parents doing back-to-school shopping.

Another recent survey, conducted by Credit Karma in July, 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.

How to save money on back-to-school shopping

Experts say parents should start looking for everything on their back-to-shopping list as early as possible.

This offers parents the ability to spend more time researching options and searching for discounts.

"Ideally, I would suggest saving through the year for school supplies so it doesn't hit the budget so hard in one month," Ashley Patrick, a personal finance expert at Budgets Made Easy, told FOX.

In addition, experts suggest parents take some time to compare prices to make sure they are getting the best possible deal.

"Leveraging retailers’ loyalty programs to earn points and access exclusive promotions, can help further enhance savings," Kotlyar explained, adding, "Take advantage of price-matching policies to ensure you’re getting the best price available and continuously check for coupons and discount codes through retailers and third-party apps before you make a purchase."

But experts also suggest waiting to buy if possible.

"Don't feel the need to buy everything all at once," Samantha Gordon, a deals editor at Consuemr Reports explained to FOX. "Kids don't need everything on their lists on the first day of classes (and they don't need a full wardrobe right away either). You can always contact their teachers to find out what they might not need right away and put those items off until later."

She said if parents are able to put off any purchases, waiting until October can yield bigger savings, as companies such as Amazon run pre-holiday sales.