Friday, July 29, 2022

Enriching Education: Education and Debt

 


With back-to-school sales-tax holidays starting up, the personal-finance website WalletHub today released its 2022 Back-to-School Report, which includes the results of a new nationwide survey of parents 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.

Please find key takeaways below, followed by commentary from WalletHub experts (audio and video files included).
  • Education is Debt-Worthy: Roughly 7 in 10 parents say their child's education is worth going into debt for.
     
  • Rethinking Investments in Education: 66% of parents say the pandemic has changed the way they plan to spend money on education.
     
  • Calls for Improved Financial Literacy: 86% of parents think financial literacy should be part of the core curriculum.
     
  • Equal Funding for Public Schools: Roughly 8 in 10 parents think all school districts should get the same amount of funding per student.
     
  • More Spending vs. 2021: 1 in 3 parents say they will spend more on back-to-school shopping this year compared to last year.
     
  • Back-to-School Savings: 46% of parents say they would apply for a new credit card to save 5% on back-to-school shopping.
     
  • Sales Tax Holidays: Held in 18 states at different times during July, August and September, 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% back 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
 
Is education worth going into debt for?

“Roughly 7 in 10 parents say their child's education is worth going into debt for, according to a new WalletHub survey. A quick look at credit card debt levels will show you that we’re generally unhesitant to overspend, and when the expense is as significant as education – both in amount and importance – all bets are off,” said Delaney Simchuk, WalletHub analyst. “Parents want to help their children as much as possible, and a good education is a dependable road to a solid professional career. Parents simply should not forget that they are financial role models, and putting themselves in a precarious position could actually jeopardize their kids’ future.”
 
Will the pandemic change the way parents spend money on education?

“A new WalletHub survey found that 66% of parents say the pandemic has changed the way they plan to spend money on education, and many of the changes are already being implemented. Some families have moved states for more dependable in-person learning, while others have started saving for private school after previously planning on public education – just to name a couple popular adjustments,” said Delaney Simchuk, WalletHub analyst. “Time will tell how inflation or the next big crisis will further affect pandemic-inspired educational investment plans.”
 
Are parents going to spend more on back-to-school shopping this year compared to 2021?
 
“One in 3 parents say they will spend more on back-to-school shopping this year compared to last year, according to a new WalletHub survey. Back-to-school shopping expectations are dampened somewhat by concerns over inflation, and the comparisons versus last year are tough given that most schools returned to in-person learning last year and parents spent accordingly,” said Delaney Simchuk, WalletHub analyst.  
 
Should financial literacy be part of the core curriculum?
 
“A new WalletHub survey found that 86% of parents think financial literacy should be part of the core curriculum, highlighting the importance of money management skills at a time when financial literacy is low, personal finance isn’t taught widely enough in schools, and parents are often in stark disagreement about what’s appropriate for the classroom,” said Delaney Simchuk, WalletHub analyst. “Parents want their kids to be prepared for life, and budgeting, saving, investing, and even paying taxes are all important, practical life skills. Many parents also recognize the importance of having some financial know-how when making big-dollar decisions regarding higher education.”
 
What advice do you have for parents looking to save on back-to-school shopping?
 
“The best things parents can do to save money on back-to-school shopping are take advantage of state sales tax holidays, shop around for the best deals on your biggest purchases, and make sure they have a credit card with great rewards,” said Delaney Simchuk, WalletHub analyst. “The best credit cards for back-to-school shopping can save you 6% or more, and there’s still plenty of time to apply for one of the best cards before you go shop.”

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