WalletHub recently released its 2021 Back-to-School Report, which includes the results of a new nationwide survey as well as picks for this year’s Best Credit Cards for Back-to-School Shopping. WalletHub’s back-to-school resources also include a Sales-Tax Holiday Calendar, highlighting the best times to buy in each state.
Highlights:- Rethinking Education Investments: 67% of parents say that COVID-19 has changed the way they plan to spend money on education.
- More Spending by Some: Nearly 1 in 4 parents say they will spend more on back-to-school shopping this year compared to 2020.
- Fears of Lasting Damage: 56% of parents think their child’s future earning potential has been hurt by the pandemic.
- In-person Education: 57% of parents think schools should fully reopen for in-person learning.
- Post-graduation Concerns: The job market is parents' #1 concern for their kids after graduation, followed by debt.
- Return on Investment: 54% of parents say they didn't get their money’s worth on their child’s education during the pandemic.
- Sales Tax Holidays: Held in 16 states at different times during July and August, sales tax holidays are offering savings of up to 7% on popular back-to-school items.
- Best Credit Card for Back-to-School shopping: The Blue Cash Preferred® Card from American Express offers high cash back earning rates in all the right categories, such as 6% on up to $6,000 spent each year at U.S. supermarkets, where parents can purchase a lot of school supplies.
Q&A with WalletHub
1. Will COVID-19 change the way parents spend money on education?
“Roughly 67% of parents say that COVID-19 has changed the way they plan to spend money on education, according to a new WalletHub survey. We can already see signs of this happening. Some changes are small, such as new types of items popping up on back-to-school shopping lists, from masks to hand sanitizer,” said Jill Gonzalez, WalletHub analyst. “Other changes are more substantial, resulting in a shift in how families invest in education throughout their kids’ schooling. For example, we can expect to see increased levels of one-on-one tutoring, as well as more parents paying for private elementary and secondary education so they can take key decisions out of the hands of government officials.”
2. Are parents going to spend more on back-to-school shopping this year compared to 2020?
“Nearly 1 in 4 parents say they will spend more on back-to-school shopping this year compared to 2020, according to a new WalletHub survey. The rebound in back-to-school spending may not be quite as pronounced as some people might expect, but it makes sense that parents are planning to be cautious,” said Jill Gonzalez, WalletHub analyst. “Many families have suffered financially due to Covid, making increased education spending hard to afford. A lot of people also went overboard last year trying to make sure their children were as prepared as possible, in the face of unprecedented educational challenges. That makes for a tougher year-over-year comparison. And some people are still probably taking a wait-and-see approach to this year’s back-to-school shopping season, given how quickly the virus situation can change.”
3. Is the future earning potential of children hurt by the pandemic?
“Although 56% of parents think their child’s future earning potential has been hurt by the pandemic, according to a new WalletHub survey, that is most likely an overreaction. Kids are resilient, and most young people probably learned a lot more last year than we think,” said Jill Gonzalez, WalletHub analyst. “It’s easy to overreact when you’re a parent and it’s your child’s future at stake, but everyone was pretty much in the same boat last year. It’s fair to say that the earning potential of the country’s young people is just as high as it was before.”
4. What are parents most concerned about for their kids after graduation?
“The job market is parents' number one concern for their kids upon graduation, cited by 41% of parents in a new WalletHub survey,” said Jill Gonzalez, WalletHub analyst. “Debt is parents’ next biggest concern after the job market, with 32% of parents putting it atop their list. This just goes to show that young people are too often leaving school overleveraged and underprepared for a competitive employment landscape.”
5. Did parents get their money’s worth on their child’s education during the pandemic?
“Most parents – 54% – say they did not get their money’s worth on their child’s education during the pandemic, according to a new WalletHub survey. It makes sense that parents feel like they got a bad deal, given that most schools – both public and private – were online-only for at least a significant portion of the year, while taxes and tuition weren’t discounted,” said Jill Gonzalez, WalletHub analyst.
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