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Quarter of parents rely on credit for back to school costs

20th August 2014 Print

With uniforms, books, stationery and other extras on parents’ shopping lists, many families will soon be thinking about how to cover the cost of the start of the new school year.

New research from the Money Advice Service among parents of children aged 4 - 11 at primary or middle school has shown vast differences in the amounts parents are spending on the annual ‘back-to-school’ shop. While well over half of parents (62%) will be spending £200 or less, nearly one in ten (9%) expect to spend £900 and over. The average spent by British parents is £180.

To cover the cost, 21% of parents say they will dip into savings. Over a quarter (26%) say they will rely on credit of some type – this is broken down as:

16% expect to use a credit card
8% will rely on an overdraft
2% will take out a loan

The research also demonstrated large regional disparities when it comes to the cost of sending children back to school. The average cost in Yorkshire and Humber is £150, yet in the North East it rises to £223. To meet this cost, a quarter of parents in London (24%) said they will turn to their credit card – the most credit card-reliant region.

When asked about previous years, one in six (15%) admitted they had previously spent more than they could afford, with 17% saying they have worried about the financial implications of the children returning to school in the past. Of those who admitted to overspending on school supplies for their children in the past, 43% said they are likely to do so again this year.

Many are cutting the cost by making use of coupons, promotions and offers (22%) and nearly a third (31%) have previously used second hand supplies. To help parents see what they will spend their money on and plan accordingly, the Money Advice Service has produced a Back to School planner which can be found at:

moneyadviceservice.org.uk/en/tools/back-to-school-planner.

Responding to the findings, Jane Symonds, a money expert at the Money Advice Service, says: “Most parents enjoy spending more time with their children during the summer holidays, but after the cost of days out and keeping the kids entertained, the annual back-to-school spend comes at the worst possible time for many.

“We all want the best for our kids, but parents need to be realistic about what they can and can’t afford. Making use of special offers, vouchers and second hand items can all help keep the costs in check and our handy back to school planner gives parents a really useful oversight of what they are going to spend. By planning ahead, parents can ensure that they don’t get carried away and also see areas where they may be able to cut back.”