SALT LAKE CITY — A new survey by Nerdwallet shows that parents are spending over $500 on back-to-school shopping.
Financial advisor with the Deseret Mutual Benefit Administrators Gerika Espinosa said the rising cost may be related to parents buying too many supplies before school starts.
“I think sometimes people think that their kids need to be loaded with so many things before school,” she said. “And then they get there and find out that it’s only excess … They’re just trying to prepare their kids [as] best as possible.”
The survey found that 42% of parents said they would take on debt for their kids to fit in.
However, Espinosa said those supplies won’t make your kids more happy.
“I think a lot of people think that more possessions and ‘keeping up with the Joneses’ and making sure their kids are fitting in for xyz, is the key to happiness,” she said.
She said that if your kid wants to buy something they don’t need, it’s a great way to teach them how to save and budget.
“Happiness declines significantly when people have to pay for something in the future that they’ve already experienced in the past,” Espinosa said. “Versus saving up and the anticipation of that … studies have shown that is actually very high as far as the happiness ratio.”
Josuee Sanchez is a reporter for KSL NewsRadio.