American families are struggling with back-to-school costs as inflation continues to put pressure on household budgets, according to a survey released Monday by financial services company Bankrate.
About 31% of back-to-school shoppers plan to go into debt or are already in debt to buy school supplies, clothing and other back-to-school essentials. investigation A Bankrate survey of 2,300 adults conducted July 15-17 found that of those in debt, nearly one in four have credit card debt and about one in eight use “buy now, pay later” payments to purchase items in installments. (Related article: Home prices surge in July, accounting for 90% of total inflation)
“I can't understand what people are living through right now,” Isabella Canales, a 29-year-old who lives in a Dallas suburb, told Bankrate. “When you look at the amount of money they have to pay for uniforms and everything else, it's just insane.”
Back-to-school shopping season is upon us
Nearly one-third (31%) of shoppers say they will likely go into debt buying back-to-school supplies, according to a recent Bankrate report conducted among more than 2,300 adults in July.
Back to school shopping will be more expensive ⬇️ pic.twitter.com/sqMGJ1nJyO
— Bad Trader (@BadTraderApp) August 19, 2024
While year-over-year inflation recently fell below 3% year-over-year for the first time since 2021, the rate is still well above the Federal Reserve's 2% target and more than double the 1.4% rate at the start of President Joe Biden's term.
Despite a drop in inflation, the price of some school supplies has skyrocketed, along with the cost of backpacks and other luggage. rise 15.6% between June 2023 and June 2024 According to According to a Bankrate survey, 32% of shoppers say inflation has changed or will change their purchasing habits in 2024, down from 41% in 2022.
The high rate at which Americans are borrowing to buy school supplies comes as the personal savings rate plummeted from 32% in April 2020 to 3.4% in June 2024. According to Meanwhile, nearly half of back-to-school shoppers are implementing “saving strategies,” with 22% of shoppers setting aside money to buy school supplies this fall, for example, according to Bankrate.
As of August 7, total credit card debt held by Americans hit a record high of $1.6 trillion. According to To Fred.
“It's important not to let your guard down,” says Ted Rothman, senior industry analyst at Bankrate. “Credit card interest rates and balances are at record highs, and all of the price increases we've seen over the past few years are taking a cumulative toll.”
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