31% of shoppers taking on debt, despite inflation impact being less severe than before
- 31% of back-to-school shoppers will take on debt this year
- Inflation impacting shopping habits less than in previous years
- Only 35% of credit card users plan to pay balance in full to avoid interest charges
- 65% of adults using debit cards for back-to-school shopping
- Families with K-12 kids to spend $874.68 on average
- Deloitte report: Spend per child drops $11 from last year to $586
A recent survey by Bankrate reveals that 31% of back-to-school shoppers will take on debt this year, a figure relatively flat compared to 2022. Inflation’s effect on shopping habits is not as significant as it was two years ago, with fewer consumers seeking deals and using coupons. While inflation has eased, Ted Rossman, Bankrate senior industry analyst, advises against complacency due to the cumulative toll of price increases over time. Only 35% of credit card users plan to pay off their balance in full to avoid interest charges. Debit cards are the preferred payment method for 65% of shoppers, followed by cash at 57%. According to a National Retail Federation and Prosper Insights & Analytics survey, families with K-12 children will spend an average of $874.68 on clothing, supplies, and electronics, the second highest in the survey’s history. Deloitte reports a $11 drop in spending per child to $586.
Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about the current state of back-to-school shopping trends, including insights from a Bankrate report and other surveys. It presents relevant data and quotes from experts to support its claims. The article is not sensationalist or misleading, and it does not include any personal perspective masquerading as fact.
Noise Level: 3
Noise Justification: The article provides some relevant information about the current state of back-to-school shopping trends and consumer behavior, but it is mostly focused on reporting data points without offering much analysis or context. It lacks a deeper exploration of the reasons behind these trends and does not offer actionable insights for readers.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses inflation impacting consumer behavior and spending habits during the back-to-school season, which can affect retailers’ sales and revenue.
Financial Rating Justification: The article mentions inflation affecting shoppers’ approach to back-to-school shopping and its influence on their purchasing decisions, as well as credit card usage and debt. This has implications for consumer spending and potentially the financial performance of retail companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
www.retaildive.com