Parents Face Rising Back-to-School Costs, Driving Debt Levels Higher

The financial burden of sending children back to school is weighing heavily on parents across Ireland, with new research revealing that many are resorting to debt to cover rising costs. Conducted by the Irish League of Credit Unions (ILCU), the annual survey of 729 parents indicates that expenses have surged significantly, prompting a shift in household spending priorities.

The ILCU’s findings, published on Wednesday, show that primary school parents now spend an average of €1,450 for back-to-school essentials, a steep increase of €364 compared to the previous year. Secondary school parents are also feeling the pinch, with their average costs rising to €1,560, up by €159 from 2024.

A troubling trend has emerged, as one in three parents—approximately 33 percent—report going into debt to manage these costs. The average debt incurred for the 2025 school year stands at €376, a slight increase from the previous year’s average of €368. This year, just over a third of parents have stated they had to forgo at least one back-to-school item for their child, with 50 percent admitting they could not purchase new gym wear.

Impact on Family Life and Financial Strategies

The survey results paint a stark picture of the impact of financial strain on family life. More than 60 percent of parents believe that schools do not do enough to mitigate costs during this financially burdensome period. David Malone, CEO of the ILCU, remarked, “This year’s back-to-school survey findings reflect the broader pressures being felt across society associated with the increasing cost of living.”

Families are increasingly making sacrifices to cope with these expenses. The data reveals that 37 percent of parents are forgoing family holidays, an increase of 6 percent from 2024. Additionally, 18 percent are sacrificing essential expenses such as food, up from 13 percent last year.

The survey highlights a shift in payment methods for back-to-school purchases. While general monthly income remains the primary source for covering these costs at 74 percent, this figure has dropped from 80 percent in 2024. The use of savings has risen to 42 percent, a 7 percent increase from the previous year. Notably, the number of parents utilizing credit union loans has tripled, rising from 4 percent in 2024 to 12 percent in 2025.

Community Support and Financial Planning

The increasing debt levels—with 36 percent of households carrying debts exceeding €500—underscore the urgent need for strategic financial planning. Malone emphasized the importance of community-focused financial services, stating, “Our role goes beyond that of the financial. I would encourage anyone seeking assistance to engage their local credit union, which continues to support communities across Ireland.”

As families grapple with these economic challenges, the findings serve as a poignant reminder of the significant sacrifices many make during the back-to-school season. The pressures of rising costs and accumulating debt highlight the need for ongoing dialogue about financial support and resources available to parents during this critical time.