A recent survey of 2,000 parents of K-12 students in the U.S. found that a third of parents will use a credit card as their primary payment method for back-to-school shopping this year. The average back-to-school spending is expected to be around $864 per family, according to the National Retail Federation.

Income Divide

Higher-income families, those making $150,000 or more a year, are more likely to use credit cards for back-to-school shopping, citing rewards and convenience as their top reasons. In contrast, lower-income earners, who make less than $50,000 a year, are more likely to be concerned about affording their back-to-school shopping bill.

Nearly half of parents earning $150,000 or more expect a credit card to cover 76% to 100% of their back-to-school spending this year, compared with just 11% of parents earning under $50,000. This highlights the income divide in how parents are paying for back-to-school expenses.

Financing Options

Some parents are considering financing options, such as buy now, pay later (BNPL), to help with back-to-school expenses. Younger parents are more open to using BNPL, while older generations are more likely to pass on this option.

For families feeling the squeeze, building a budget for back-to-school costs ahead of time may be more important than which payment method they use. Parents can also consider using credit cards with rewards or 0% intro APR on purchases to help with expenses.

Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.