Back-to-school debt trap: 39% of parents borrowing to keep up with classmates

Nearly four in ten American parents expect to take on debt this back-to-school season, driven not just by higher prices but by the fear of their children feeling left out.

A survey of 2,000 US parents of school-aged children has found that 70% feel pressure to buy the same clothes, technology, and supplies as other families, and 61% have purchased items specifically so their child wouldn't feel excluded.

Meanwhile, 39% say they plan to go into debt to cover back-to-school costs this year with 15% turning to personal or payday loans, and 8% admitting they have gambled to cover expenses.

"Parents naturally want to protect their children from feeling left out, but comparison can quietly become one of the most expensive parts of back-to-school season," said Dr. Erika Rasure, Chief Financial Wellness Advisor at Beyond Finance and a Certified Financial Therapist. The survey was conducted July 20–27, 2026 by Talker Research on behalf of the debt consolidation firm.

The emotional stakes are high with 74% of respondents saying they would feel guilty if they couldn't buy everything their child wanted, and 69% said they would feel like a failure. But 42% of those who gave in to social pressure later regretted the purchase.

The Beyond Finance data shows that 23% of parents delayed saving for the future to cover school costs, 20% delayed paying down existing debt, and 15% pushed back rent or mortgage payments.

Rising prices are amplifying the strain

A separate KPMG Consumer Pulse Back-to-School 2026 Survey, which polled 2,297 US consumers in May and June found that families expect to spend an average of $252 per child this season; a 6% increase from 2025. Nearly 80% of parents attributed the rise to higher prices for the same items, not to buying more.

"Families are paying more this back-to-school season, but they aren't getting more," said Duleep Rodrigo, KPMG's US Consumer, Retail & Hospitality Leader.

With the broader cost-of-living pressures, 83% of families expect to spend more on groceries, 77% on gas and car maintenance, and 52% on prescription drugs. Half plan to dine out less, and 48% say they will shift to simpler weekday meals to compensate.

Value-seeking at the register but spending still climbs

A third survey, from the International Council of Shopping Centers, found that average back-to-school spending this season is expected to reach $944 per household, a slight increase year-over-year, despite widespread concern about affordability. Among parents only, the average is approximately $820, up about $100 from 2025.

The poll of 1,009 US respondents conducted July 6–8, 2026, found that 54% are worried about affording everything their family needs this season, but most are still spending. Sixty-three percent favor discount stores, 57% shopped early promotional events in June, including Amazon Prime Day and Walmart Deals, and 91% say they spent or plan to spend in physical stores.

However, 97% of households earning between $25,000 and $75,000 annually say rising prices are affecting their purchasing decisions, compared to 87% of those earning over $250,000. Among the lowest-income shoppers, 38% identify as "value seekers", actively limiting spending and hunting for deals, versus 20% of the highest earners.

The challenges for parents managing back-to-school expenses was also highlighted in recent research from Deloitte.