promoearn: The Daily Money: How much more school supplies will cost this year?

Monday, August 1, 2022

The Daily Money: How much more school supplies will cost this year?

ALL THE MONEY NEWS YOU NEED TO KNOW

Monday, August 1

Happy Monday, Daily Money readers! Jayme Deerwester back with you.

If you've been in a big box store lately, you've probably seen some back to school signage. Maybe you even peeked at some price tags – and winced.

But because school supplies are seen as a necessity, many parents are expected to cough up for them – even if they cost more this year. The average amount spent per child is up 8% to $661 from last year and up 27% from 2019, with 60% of the 1,200 parents surveyed saying they're spending more because prices are higher, according to a Deloitte poll.

More worryingly, a Qualtrics/Credit Karma survey found that 42% of parents with school-age kids planned to take on debt to pay for school shopping, Colleen McCreary, consumer financial advocate at Credit Karma, told USA TODAY.

"Just over half of parents who say they plan to take on debt to pay for back-to-school shopping expect to take on more than $300 in debt, with another one-in-five taking on more than $500 in debt to pay for things like clothing and other school supplies," she said.

Looking to save on back-to-school gear?

•	Keep your eyes peeled for sales through August as retailers compete for budget-conscious shoppers.
•	Opt for private label products where you can.
•	Hit up the dollar store or second-hand shops.
•	Take advantage of state tax holidays.

Student loan pause may end soon. Is it better to pay or wait?

For anyone with federal student loans, the anticipation of another extension of the student loan payment pause has become a seasonal activity. The pause is slated to end Aug. 31, though it has been extended multiple times over the past two presidential administrations and Democratic lawmakers are using President Joe Biden to do so again.

For many, the bigger question is will Biden forgive some or all of the $1.7 trillion student loan debt owed by 40 million-plus Americans? That possibility has some borrowers wondering if they should roll the dice and wait before catching up on payments.

Scott Buchanan, executive director of the Student Loan Servicing Alliance, said it may be risky for borrowers to base their financial future on an action the government has yet to take, and they ought to come up with a strategy of paying off their loans that doesn't include widespread loan forgiveness.

Remember: Because interest rates are at zero, any payment made on student loans go directly to reducing the principal. That may allow borrowers to pay off their loans more quickly.

🎧 Mood music 🎧

Netflix's "Stranger Things" is introducing a new generation of fans to Siouxsie and the Banshees like it did for Kate Bush an old-school Metallica earlier this season. So if you all you know of the British band is "Spellbound" and maybe "Kiss Them For Me," here's another track to try while you're laying the eyeliner on nice and thick.

"The stars that shine and the stars that shrink. In the face of stagnation, the water runs before your eyes."

About The Daily Money

Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you. It even comes with its own Spotify playlist . It features nearly every song quoted here.

Follow Jayme Deerwester on Twitter – or Instagram, if you prefer puppy pictures. (Why? Because everybody loves puppies!)