New research found 39% plan to take on debt this year for back-to-school expenses.
As back-to-school shopping ramps up, new research suggests many parents are feeling squeezed enough to consider risky ways to cover the costs.
A survey of 2,000 parents by Beyond Finance, a debt consolidation and financial wellness company, found 39% plan to take on debt this year for back-to-school expenses, while 38% are still paying off debt from previous school years.
The survey also found 23% of parents plan to use buy now, pay later services. Another 15% anticipate using personal or payday loans, 12% plan to pawn possessions, and 8% say they may gamble to cover school costs.
“This is what we're actually calling the back-to-school parent trap and this is what happends when a parent feels forced to choose between protecting their child and emotionally and protecting their child financially,” said Dr. Erika Rasure, chief financial wellness advisor at Beyond Finance.
The National Retail Federation says parents plan to spend an average of $557 per child, with back-to-school spending expected to reach a record $43.3 billion this year.
