Parents get the maths wrong on back to school budget

With the back to school deadline looming, it’s not just the kids who are caving in to peer pressure, as almost half (47 per cent) of parents admit they feel the need to buy their children new items to keep up with other parents. Equipping the children with the right gear comes at a cost though - research by American Express finds that whilst two thirds (67 per cent) of parents have good intentions and set a budget for school items, 44 per cent still overspend.

Despite the tendency of many parents to break the budget, the good news is that the cost of getting the little ones ready for the new school year has dropped slightly to £177 from £189 last year. However, more than two thirds of parents (65 per cent) still feel the impact on their wallets and believe that the cost of going back to school is getting more expensive each year.

The UK’s ‘back to school’ bill totals more than £1.7 billion, and the burden of meeting this cost takes its toll as half (50 per cent) of parents worry about how they will afford to buy everything their children require. Just one in five (20 per cent) parents prepare for this annual outlay by saving up though, while 43 per cent absorb the cost into their normal monthly outgoings.

When it comes to the list of items needed for the new term, over half (57 per cent) of parents feel that it gets longer each year. The American Express research finds that parents spend the following on the following items (average):

Electronic Gadget, e.g. mobile phone: £94.59

Uniform: £30.42
Shoes: £23.04
Coat: £21.76
Trainers: £19.60
PE Kit: £16.12
Back Pack: £12.55
Personal Stationary: £11.19
Calculator: £9.73
Book Bag: £9.37

Nicholas Stefanovitz, Vice President of Consumer Cards UK at American Express, said:  “It’s clear from our research that some parents feel the financial strain of getting the kids ready for the new school term, but they are determined to make sure that they have all the right kit. The annual back to school outlay is unavoidable, so parents should think about putting this spending on credit cards that offer rewards or cashback to ensure they get something back on their spending.”

American Express has a range of credit and charge cards that offer benefits including cashback, Avios points, Nectar points and Membership Rewards that can be put towards school items, as well as leisure, travel and retail treats. For more information or to apply for an American Express Credit Card visit: americanexpress.co.uk/allcards