A recent survey by Motley Fool Money 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 cost of back-to-school shopping 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 a clear divide in how parents are paying for back-to-school expenses, with higher-income families using credit cards by preference and lower-income families using them out of necessity.

Financial Stress

For families earning under $50,000, relying on a credit card for most of their back-to-school expenses can lead to real financial stress. This income group is also the most likely to say they are extremely concerned about affording the season at all.

In contrast, higher-income families are using credit cards for convenience and rewards, rather than out of necessity. They are also the least likely to be worried about their back-to-school shopping bill and the most likely to say that convenience or rewards, not need, is the reason for using a credit card.

Building a budget for back-to-school costs ahead of time may be more important for families feeling the squeeze rather than chasing rewards.

Original reporting: KRDO (Colorado Springs metro) — read the source article.