Two-thirds of parents say they are willing to go into debt to help their children fit in at school, according to a recent BadCredit.org study, revealing just how emotionally loaded and financially unsustainable the back-to-school season has become for millions of American families.
Americans are still feeling the pinch of inflation. Yet, despite the soaring costs of essentials, many American parents are prioritizing social comfort over responsible spending.
Instead of operating within a budget, parents are letting the fear of their children being left out drive their spending decisions. This, in turn, is causing some parents to spend beyond their budgets or lean on credit cards to finance back-to-school supplies.
According to our survey, parents increasingly feel a sense of obligation to shield their children from embarrassment or exclusion, no matter the cost.
57% Admit to Overspending to Avoid Disappointing Their Kid
For millions of Americans, the reality is that back-to-school shopping has become more complex. Parents aren’t just buying essential school supplies; they’re equipping their kids with the things they need to feel included, making back-to-school a much more emotionally charged experience for everyone involved.
Behind the shopping bags of notebooks, backpacks, and clothing is a parent potentially spending more than they can afford to buy supplies that they hope will help their kids belong in the social environment.
Our study reveals a concerning trend: 57% of surveyed parents admit to overspending in fear of letting their kids down. Perhaps what’s more telling is that parents from younger generations show the most willingness to overspend, with Gen Z parents 21% more likely to overspend than Gen X parents:
- Gen Z: 73%
- Millennials: 62%
- Boomers: 52%
- Gen X: 51%
59% Haven’t Set a Back-to-School Budget with Their Child
Americans have become increasingly financially stretched. Growing costs, including those tied to tariffs, are squeezing families, pushing them to spend more on everyday essentials. Yet, millions of families are overspending without a plan or the means.
According to the study, nearly half (47%) of parents say they expect to spend $200–$499 per child this back-to-school season. But 59% say they haven’t discussed a back-to-school budget with their kids.
51% Say Public Schools Should Cover the Cost of Supplies
About 86% of surveyed parents believe all students should receive the same essential school supplies, regardless of income. And parents are willing to pay higher taxes to achieve this.
According to our survey, 51% of surveyed parents say public schools should cover the cost of school supplies, even if it means raising taxes. Younger generations were the biggest proponents of this idea, with 76% of Gen Z and 60% of millennials showing support.
Parents are voicing their opinion — and they want an even playing field. They are tired of being drowned under this financial pressure alone and are seeking a life raft, primarily from public schools.
Read the full report here.
