A consumer opinion survey conducted by ScoreSense reveals that 31% of parents with children in college or trade school are looking for a second job and 20% are dipping into retirement savings.
According to the credit score monitoring app study, the inflationary economy is affecting 67% of parents with children from elementary school to college on your ability to pay for education, school supplies, or extracurricular activities.
The survey also found that nearly half of elementary school parents plan to use cash and 38% plan to use credit cards to pay for school supplies and clothes for back to school.
“As higher education prices continue to rise, parents are making financial adjustments in their lives to help their children go to college or trade school,” the report says.
“Regardless of the daily economic headlines, the reality is that inflation continues to challenge many American households,” said Carlos Medina, senior vice president at One Technologies, LLC, which offers ScoreSense. “Delinquent accounts increased 12% during the second quarter of 2022”.
Relevant data from the survey:
· Nearly half of elementary school parents plan to use cash and 38% plan to use credit cards to pay for clothes and school supplies.
Back-to-school expenses like supplies, clothing, and uniforms can add up, and 41% of parents expect to accumulate between $100 and $399 in debt for it. Another 23% of parents plan to accumulate $400 – $699 in debt.
36% of elementary school parents they are taking advantage of their savings and 25% of parents are taking a second job to help finance these activities.
· With the private school averaging $12,167 In the United States for elementary school, 35% of private school parents are reducing their living expenses, 25% are tapping into their savings, and 21% are taking a second job to pay for tuition.
· Average tuition for US private universities grew 4% last year at just under $40,000 per year and state public schools average $10,500.
· 27% plan to pause or reduce their contribution to their retirement plan to help pay for college, while 25% are considering it. Within this group of parents, 47% are very concerned and 50% are somewhat concerned for having enough money to retire.
· He 60% of parents are cutting living expenses and 50% are tapping into savings to help pay for college/technical school.
· 40% of college parents plan to spend between $10,000 and $50,000 in tuition and school feeswhile 20% plan to spend $100,000 or more to help their children complete college or trade school.
Meal and meal plans top the list with the 74% of school expenses parents will help payfollowed by tuition at 66% and car/insurance/fuel payments at 52%.
For more details about the survey and its methodology, click here.
Keep reading:
· In the US, 1 in 3 parents say that money prevents them from having more children
US consumer emergency spending rises from $1,400 to $1,700 in the last year
Half of American women admit they have financial problems
