Nearly 60% of parents are in debt and a THIRD have used their children’s study funds because of the coronavirus as millions lose jobs and distance learning costs.
- Research among American parents shows that 56% were in debt during the coronavirus crisis
- More than a third have used study funds for emergency costs
- The average family has paid over $ 1,000 for distance learning costs
- Computers, iPads and headphones for children have added up for parents
- Parents say the most difficult part of working from home is guiding children
- Here’s how you can help people affected by Covid-19
More than half of parents have gone into debt as a result of the coronavirus pandemic, as households across the country are struggling with job losses and unexpected expenses.
Fifty-six percent of U.S. parents have gone into debt due to the crisis, according to a weighted survey of 1,005 parents of under-age children. Lending tree.
“The truth is that even before the outbreak hit, most Americans’ financial margin of error was small,” Matt Schulz, chief analyst at LendingTree and parent of an 8th grade son, said in a statement.
That means that even small changes can have a big impact on the family budget. When you consider how many parents are dealing with job losses or medical problems while struggling to keep their children in school, this time it will be even more challenging financially, ”he said.
A third of parents said that the most difficult part of the coronavirus pandemic attempted to work from home while caring for children (stock image)
56% of American parents have entered into debts as a result of the crisis
Shockingly, the survey found that 36 percent of parents tapped their child’s study fund to cover the costs due to the financial burden of the COVID-19 outbreak.
“In normal times, tapping into a college fund for kids would be something that should be avoided as much as possible,” said Schulz.
He added, “These are clearly not normal times, however. If your financial world has been turned upside down by the pandemic and that university fund can help you with some of the distance learning costs, it is worth considering. ‘
At the same time that the coronavirus blockades have devastated employment, leaving more than 36 million people unemployed since the crisis began, families have faced unexpected costs associated with moving their children’s school online.
Almost half of the parents had to buy a computer or iPad for their child during the crisis
Six out of 10 parents had to spend money on their child’s distance learning, the survey found.
Along with headphones, software, and other school supplies, parents spent an average of $ 1,018.50 to turn their homes into virtual classrooms.
A third of the parents said the hardest part of the coronavirus pandemic is trying to work from home while caring for children.
They also struggle with managing their child’s distance learning (19%) while facing financial tensions caused by loss of income (18%).
Of all types of debt, parents are increasingly adding to their credit card balances.
Four out of ten parents said they struggled to pay their mortgage or rent, or did not pay in full
Fifteen percent of parents relied on a personal loan, while one in ten relied on friends and family for money.
Four out of ten parents said they had difficulty paying their mortgage or rent or had not paid in full in the past month. About the same amount struggled to pay their credit card, utility bills, and phone bill.
“Ultimately, parents have to prioritize,” said Schulz. “If you’ve lost a job, the most important thing is to keep the lights on and make sure there’s food on the table.
“In those circumstances, you may not be able to give your child everything they need to take classes at home, so you should talk to your kids’ teachers or school officials and ask them for advice,” he added. “You certainly won’t be the only one struggling.”