Credit union survey says school costs will be a struggle for more families this year

An annual survey by the Irish League of Credit Unions has found that the rising cost of living is impacting heavily on funding back to school costs for parents.

The survey showed that two-thirds of parents in Leinster (67%) expect back to school costs to pose a financial burden for them, which is up 6% from last year

Nationally, parents are spending €1,195 per primary school child and €1,518 on secondary school children, according to the survey.

Three in ten families are incurring debt due to school costs, with the average debt amounting to €327 per family, while a quarter (25%) are using credit cards to purchase back to school items.

A whopping 87% of parents in Leinster say their income or household costs have been affected by the rising cost of living, with 67% choosing to cancel TV subscriptions or gym memberships in a bid to keep costs down.

Six in ten families (59%) say the increasing cost of food for children's school lunches is the biggest effect of the rising cost of living.

Commenting on this year’s findings, the Irish League of Credit Unions' (ILCU) Head of Communications, Paul Bailey, said, "The costs of sending children to school this September are the highest since the ILCU started its annual survey in 2017.

"This, on top of the rising costs of living and high inflation, will heavily impact on households across the country. What is particularly concerning is the increase in the amount of parents reporting that they will go into debt to send their children to school.

"While two in three parents believe that schools don’t do enough to keep school going costs down, many are cutting back on extracurricular activities for their children to balance the books. Others are relying on savings or turning to family and friends for loans.

"We are also seeing a huge increase in the number of parents using their credit cards to purchase back to school items. As we know this is an expensive form of finance and I would urge parents to consider cheaper forms such as a credit union or bank loan," he commented.

The survey was carried out by iReach Insights on behalf of the Irish League of Credit Unions between June 9 and June 21 this year.