Parents of young children going into debt because of COVID-19
LendingTree survey finds top stressors -- and top money pits -- due to COVID-19
I thank my lucky stars my three children are grown and out of the house. If I were trying to take care of them at home while working remotely during a pandemic, I would have had an ulcer by now. And I would have likely lost my temper multiple times and would be viewing myself as a bad mom, if not a terrible one. I don’t know how people with children, especially young children do it. It is a mammoth job. But they’re doing it, and doing it while under a huge amount of COVID-19-caused stress, not the least of which is financial.
According to a survey from LendingTree, parents, especially parents of young children, are going into debt because of the coronavirus pandemic. In fact, 56% of parents are in debt directly due to the coronavirus pandemic, LendingTree says.
Many are turning to credit cards just to make ends meet, with four in 10 adding credit card debt, and 15% turning to personal loans.
Because of the need to work from home, and the closure of schools and daycares, parents are on 24/7, dealing with home-schooling schedules and homework while trying to do their own jobs. And because of the stressors companies and employers are facing due to economic fallout from COVID-19, employees feel the added need to work even harder and perform even better in case their jobs are at risk.
Thus the top stressor for parents, especially those with young children, is balancing working from home with homeschooling their children — nearly a third (31%) of parents surveyed feel this way, LendingTree says. The videos showing children bursting in on parents in important video meetings used to be funny, pre-COVID-19. It’s not as funny now.
Enter the iPad, the laptop, the streaming movies, the video game, the “please let this activity occupy my child so I can just go onto this Zoom meeting and present to management for 20 minutes” expense.
Not to mention the distance learning equipment that could help struggling or anxious children take on the new normal of attending school online and succeed. That includes said iPad or laptop, plus headphones, the proper software, a printer, and more. Parents spent over $1,000 on distance learning supplies, LendingTree says.
But they’re also spending on such necessities as groceries. In fact, 37% of the families with children that LendingTree surveyed said their stimulus check would go to buying groceries.
“The truth is that even before the outbreak hit, most Americans’ financial margin for error was tiny,” said Matt Schulz, chief industry analyst at LendingTree and parent of an 8th grade son.
“That means that even minor changes can have a major impact on the family budget. Then, when you consider how many parents are dealing with job losses or medical problems while also struggling to make sure their kids stay on track with school, it makes this time even more challenging financially.”
Families should realize, he says, that others are in the same boat and should speak up to school officials about their difficulties rather than be silent.
Americans are big into financial shaming — at least they were pre-COVID-19. Before the pandemic, people didn’t talk about money and credit card debt and being laid off. But if ever there were a time to speak up about finances, to get help, to shrug off the shame, now is it. And if ever there were a time to give some encouragement and a listening ear to a parent under stress, now is especially it.
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