As families prep for back-to-school season, a new survey is highlighting the impact that these preparations can have on household finances.
More than 90 per cent of Canadian parents expect to spend $524 on back-to-school supplies, according to a new survey by financial platform NerdWallet, Inc.
The total expected spending is an approximation and may account for families with more than one child, said Shannon Terrell, a personal finance expert and spokesperson from NerdWallet Canada.
“Spending more than $500 for back-to-school shopping is a sizable sum of money, but I can certainly understand how families might get there… especially for those shopping for more than one child,” she said.
The survey shows that 27 per cent of parents say they will purchase fewer back-to-school supplies for their children this year than in previous years due to inflation.
As inflation rose throughout 2022 and 2023, families are having to grapple with higher prices of food, housing and transportation. Back-to-school shopping only adds to these costs.
As Terrell put it: “ultimately the pressure is still on.”
“We've been dealing with these elevated prices for quite some time and ultimately that's going to have a cumulative effect on budgets entering the new school year,” said Terrell.
The province of B.C offers support for low income families through the School Start-up Supplement. This provides income assistance, disability assistance and hardship assistance to help pay for extra costs associated with education for individuals under 19.
Still, of those surveyed, 14 per cent of parents anticipate they will go into debt through credit cards, personal loans or paycheck advances to pay for back-to-school items.
“That emphasizes the importance of considering all of the options you have on the table before you take on debt, especially before you take on high interest debt like taking out a payday loan or using your credit card,” said Terrell.
“So relying on your community support, relying on online marketplaces can be another great resource where you can maybe source things second-hand. There's lots to be gained from doing a little bit of research.”
More than half, 53 per cent, of parents say they plan to shop during sales for back-to-school items.
“For folks who are trying to cut down on that sizable $500-plus sum, there’s shopping sales,” said Terrell.
“Now, people who can afford to wait until after school has started, it's tough, but that's when you're going to potentially encounter those clearance sales.”
She recommends creating a shopping list to avoid any splurges or impulse purchases.
