More Americans are expected to go into debt this year to pay for school supplies, a new survey found.
According to Bankrate's survey, 31% of adults doing back-to-school shopping will go into debt to pay for supplies. The survey found that 24% plan on using credit cards and carry a balance, while 13% will use buy now, pay later services.
The survey also found that 18% of shoppers say that school supplies will place a strain on their budget, and 14% of adults say they feel pressured to spend more than they're comfortable with.
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Despite the financial strain, fewer Americans report being as hamstrung by inflation. The survey found that 32% of shoppers say inflation will change the way they shop, which is down from 41% in 2022. In the 12 months ending July 2022, the consumer price index was up 8.5% for the year. In July 2024, the annual inflation rate dropped to 2.9%.
Although inflation has eased, it is still taking a toll on consumers.
“Shoppers aren’t clutching their wallets nearly as tightly this year. It’s important not to let your guard down, though,” Bankrate senior industry analyst Ted Rossman said. “Credit card rates and balances remain near record highs and there’s a cumulative toll to all of the price increases we’ve seen the past few years.”
How much are people spending
According to the National Retail Federation, Americans will spend $38.8 billion on K-12 back-to-school related shopping, which is down from a high of $41.5 billion a year ago. The typical household will spend $875, the NRF said.
For the fifth consecutive year, electronics and computer-related equipment will be the most costly back-to-school expense. The typical household will spend $309 on electronics. The average American household will spend $253 on back-to-school clothing while spending an additional $170 on shoes and $141 on school supplies.
Back-to-college spending is expected to reach $86.6 billion this year, the NRF said. That figure is down from $94 billion a year ago. The typical household is expected to spend $1,365 on back-to-college expenses.
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