Rising Costs of At-Home Education: Parents Facing Debt & Financial Strain

The shift to at-home education this school year is taking a financial toll on many parents, according to a new Credit Karma survey.

In July, we surveyed more than 1,000 parents whose children will be taking classes or learning from home at least part time during the school year because of COVID-19 restrictions. We found that many — one-third (33%) of all parents surveyed — don’t feel financially prepared to pay for school-related needs, while 25% have already gone into debt to purchase at-home school supplies.

Our survey also found that more than one in 10 parents (12%) expect that by the end of 2020 they’ll need to take on debt to support their children’s education. (Learn more about our methodology.)

And when it comes to the new challenges of at-home learning, some feel the strain more than others. Many working parents from our survey (62%) said they’ve had to compromise their careers to accommodate their kids’ at-home education. Meanwhile, single mothers were the most likely group to say they feel financially unprepared to pay for at-home school supplies this upcoming school year (52%).

The new reality facing many parents and students this year makes planning and budgeting more important than ever. We’ve got some tips to help with budgeting and shopping for supplies during an atypical school year. 

Key survey findings

A full third (33%) of parents surveyed do not feel financially prepared to pay for school-related necessities.A quarter (25%) of all surveyed parents have already taken on debt to buy at-home school supplies this year. In addition, about one in 10 (12%) of all parents we surveyed expect to go into debt by the end of 2020 to support their children’s at-home education.Of those parents who’ve gone into debt already, 25% have gone more than $1,000 into debt to pay for at-home education supplies.One-third of parents from our survey (33%) say their children’s schools or school districts are not providing school supplies needed to learn from home.The current situation may be hardest on working parents and single mothers in particular: 62% of working parents from our survey say they need to compromise their careers to accommodate educating their kids from home. And 52% of unmarried women from our survey say they feel financially unprepared to pay for school-related necessities this upcoming school year (compared to 35% of unmarried men, 31% of married women and 15% of married men).

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How much debt are parents taking on?

Setting aside any additional costs for childcare, a significant number of parents from our survey (25%) have already gone into debt to purchase at-home school supplies for their children this year. Here’s how much debt these parents have gone to buy those learning supplies.

• Less than $100: 10%
• $100–$500 in debt: 43%
• $501–$1,000 in debt: 22%
• More than $1,000 in debt: 25%

Our survey also found that married men were the most likely group to take on debt for at-home school supplies — 34% of married men reported doing so, as did 32% of men overall. By comparison just 16% of married women and 21% of all women surveyed reported doing so. 

What’s driving parents’ education-related debt?

The transition to at-home education is posing financial challenges for many, but some supplies are particularly costly for families, according to our survey.

For parents who have gone into debt this year to buy at-home schooling supplies for their kids, here are the top items that primarily caused them to go into debt.

1. Laptop, iPad or tablet: 39%
2. WiFi or other internet expenses: 12%
3. Daily meals: 10%
4. Learning software: 8%
5. Video conferencing tools: 8%
6. Textbooks: 8%

While every family’s situation may be unique, there were a few common reasons parents gave in our survey for going into debt for their child’s education:

• I now have to provide learning supplies that I typically rely on my kid(s)’ school to provide, such as textbooks, pens, notebooks, learning software or laptops/tablets, etc. (38%).
• I had no option other than going into debt to provide school supplies (32%).
• I now have to pay for breakfast and lunch for my kid(s), which their school usually provides (27%).

And all of this is despite the fact that 67% of all parents from our survey said they’re receiving (or will receive) at least some support from their children’s school districts. 

Working parents, single moms may have it the hardest

The transition to at-home education has been especially tough for working parents and single mothers, our survey found.

When it comes to adjusting to having to balance work and their kids’ education, here’s what working parents from our survey said:

• Nearly two-thirds (62%) of working parents report feeling that they need to compromise their careers to accommodate the changing needs of educating their kids from home.
• Almost two-thirds (65%) say they’re working more hours now due to needing to help their kids with their at-home learning.
• More than one-third (34%) of working parents say they don’t have flexibility in their workdays to accommodate at-home education for their kids.

And when it comes to single mothers, they may have extra financial pressures, according to our survey’s findings.

Over half of unmarried mothers (52%) from our survey say they feel financially unprepared to pay for school-related necessities this upcoming school year. By comparison, only 35% of unmarried men, 31% of married women and 15% of married men said the same.

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Tips to help you shop for an uncertain school year

With all the expenses that come with at-home education, it’s no wonder a third of parents surveyed (33%) feel financially unprepared. But we’ve got some tips that might help you minimize extra expenses for supplies this school year.

Assess what you already own and prioritize future spending on must-haves. Your child’s school should communicate a back-to-school plan that includes a supply list. Make sure you check the list and assess what items on the list you already have, what you must get in order for your child to do their work and which supplies they could do without.

Track your spending and keep a budget. Another recent Credit Karma survey found that many Americans have developed some helpful financial habits during the pandemic, like keeping a closer eye on their finances or setting a monthly budget. If you can, consider bucketing your spending and savings and focusing on putting any savings towards emergency expenses.

Choose school supplies that will serve multiple types of learning and hold up over time. This school year is different because your child may be learning entirely remotely or may have a mix of in-person and online learning. School supplies that can easily transition from online to in-person learning may make more sense. And keep in mind that safety is more important than ever. With clothing, shoes, masks and backpacks, think about what items will be durable and hold up to extra washing.

Compare prices and consider refurbished or secondhand items. It might be too risky to do in-person shopping for this school season, but that doesn’t mean you shouldn’t compare prices to find a good value. Make sure you look online for pricing from a few retailers before ordering an item either online or in-person. Consider buying refurbished for any electronics like laptops or tablets for savings. Other items like desks or chairs that you might need for a home classroom or office could come from places like Craigslist or Facebook Marketplace — just be sure to give secondhand items an extra cleaning.

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Methodology

On behalf of Credit Karma, Qualtrics conducted a nationally representative online survey in June 2020 among 1,006 parents of children who will be learning or taking classes at home at least part-time during the upcoming school year to better understand how parents expect to spend money on their kid(s)’ education expenses.