Back-to-School Shopping Pushes More Americans Into Debt

As back-to-school season rolls around, an alarming number of American families are finding themselves deeper in debt just to get their kids ready for the new school year. According to Bankrate’s latest Back to School Survey, nearly one-third (31%) of U.S. adults have either already gone into debt or will do so to cover back-to-school expenses this year. This marks a slight but significant increase from the 29% reported in 2022, signaling that the financial strain on families is growing.

The cost of outfitting students for the upcoming school year is no small burden. The National Retail Federation reports that parents of children in kindergarten through 12th grade are shelling out an average of $875 per child. For college students, the price tag climbs even higher, averaging around $1,365. These rising costs are driven by everything from skyrocketing prices for basic supplies to the ever-increasing need for technology and gadgets in today’s education landscape.

As families grapple with these expenses, many are turning to credit cards and loans to make ends meet. This growing reliance on debt for such routine expenses underscores the widening gap between income and the cost of living in the United States. With inflation still a major concern and wages struggling to keep pace, more and more families are finding that even essential expenses, like education, are pushing them beyond their financial limits.

The trend of escalating back-to-school costs and the accompanying rise in debt raises questions about the long-term financial health of American households. While parents strive to provide their children with the tools they need to succeed, the increasing financial burden is a stark reminder of the economic challenges many face. As the school year begins, families are left to balance the importance of education with the realities of their financial situations, often with debt as the only solution.