Half of parents unable to cover back to school costs

New research by Creditspring has found that half of parents (52%) are unable to cover back-to-school costs with their current income, with two in five at a loss as to how they will be able to afford new term essentials.

The research found that four in ten (39%) are reliant on credit to buy back-to-school purchases such as uniforms and stationery, with half (48%) cutting spending on other essential items ahead of the new school year.

For almost half (48%) this brings with it worry about the cost of back-to-school supplies, with the majority (58%) expecting the start of the new term to cost more this year than ever before.

The research has found one in four (40%) parents feel back-to school costs are unaffordable, with a third (34%) saying they would consider homeschooling their child to avoid incurring this expenditure every year.

Half (52%) of parents are unable to cover the cost of back-to-school with their current income and four in ten (39%) are wholly reliant on credit to make these purchases, with nearly four in ten (37%) saying they expect this spending to put them into debt. A fifth (20%) will use their credit cards to purchase back-to-school items, 13% their overdraft, 10% buy now, pay later, and 6% will borrow from family and friends.

Neil Kadagathur, CEO and Co-Founder of Creditspring said “The start of a new school term should be an exciting time for families, but for too many parents this excitement is being overwhelmed by the financial pressure of kitting out their children with new uniform and other back-to-school essentials. This pressure is particularly acute after six weeks of school holidays, during which many families will have drawn from savings to pay for summer holidays or summer camps.

“Moments such as these – where often a couple of hundred pounds can be transformative – highlight the important role of safe and affordable credit options. Used correctly, credit can be a lifeline, but problems start to arise when consumers are forced to pile costs onto credit cards, where the true cost of credit is often shrouded in realms of confusing small print and debt can pile up.

“Consumers need to have access to safe, simple and affordable short-term credit options that will help them manage cashflow through an expensive month, without having a knock-on impact to their longer financial health.”