Back to School Spending and Debt

Back to school spending and debt expectations of college bound students.

A new study from Varo Money, a mobile banking app, reports that half (50%) of students have already gone into debt back to school shopping.

A majority of American college students (69%) plan to spend less than $500 getting ready to go back to school, 11% expect to spend more than $1,000.

Where’s the Party?
Most surprising may be the reasons college students go into debt: 18% of millennials say partyingis a reason to take on credit card debt.

61% of American college students currently have credit card debt. The top reasons given:

• To have financial independence from their parents — 43%
• To travel — 33%
• To shop / to purchase interview attire — 29% each
• To have a nice apartment — 25%
• To party — 18%

Other findings:

• 51% of Americans who go to college open credit cards
• 41% of college-educated millennials do not consult with anyone before accepting credit offers
• 38% of college-educated Americans do not know what their credit card APR