MORE THAN ONE-in-four parents are getting into debt in order to cover the costs of sending their children back to school. 

A new survey by the Irish League of Credit Unions (ILCU) found that nearly half (46%) of parents struggling to manage costs have cancelled or reduced non-essential service or activities to cover rising costs, with almost a quarter (23%) trying to earn additional income.

Of the 716 parents surveyed in June, 62% said that covering the cost of back to school is a financial burden, a decline of 10% on last year.

According to the findings, parents are now spending €1,401 per secondary school child, up €113 on last year. The cost of sending a primary school child to school is down €66 at €1,086. 

More than half (53%) of parents said they feel pressured to buy branded clothing, footwear, and other items for their children, up 11% from 2021.

Some 56% of parents said that the increasing costs of food for children for school lunches is the biggest effect of the rising back to school costs, followed by increasing costs of new school uniforms (54%) and school trips of activities (52%). 

Two-in-three (67%) parents believe that schools don’t do enough to help keep the costs of going back to school down.

Some 13% of parents said they have to sacrifice spending on food to cover back to school costs, while 31% said family holidays are the biggest sacrifice to cover the costs. 

Debt

ILCU CEO David Malone said the findings show that Government initiatives like the Free School Books scheme do seem to have eased the financial burden for some families.

“However, there is a still an onerous cost burden on parents with increasing levels of associated debt linked to schooling and the cost of living,” Malone said. 

The average level of debt is €368, an increase of €62 on last year. Some 32% of parents have debts of over €500.

While many parents use income or savings for back to school costs, 19% said they use a credit card.

“Interest is applied to the full remaining balance with the rates being charged here ranging from 14% to over 25%. In addition, if you miss your minimum payment, debt can accumulate,” Malone said.

The survey also found that 86% of parents with schoolchildren say their income or household costs have been affected by rising costs of living, with 91% of those affected experiencing additional grocery costs and 89% seeing additional costs to utility bills.

“Overall, we want parents of both primary and secondary students to know credit unions are here to help plan out and manage these expenses.

“As not-for-profit organisations, established in communities all across Ireland, we understand the impact of these important costs on households, and we would encourage anyone who has concerns to talk to their local credit union.”