While everyone has been impacted by the ongoing coronavirus pandemic, there’s one part of the household that is feeling the impact a bit more than others – especially to their bank accounts, according to a new report.
With parents balancing careers, work, and finances all from their homes, nearly 60% of parents are in debt due to the COVID-19 outbreak, according to a new survey. LendingTree released a study of more than 1,000 parents with children under the age of 18 to understand how the pandemic has impacted their lives. The survey focused on the financial implications, where 56% of parents said they are in debt due to the “added financial strain” the pandemic has placed on them.
Forty percent of respondents said they’ve added credit card debt, while 15% had to take out a personal loan to help keep things afloat during the pandemic.
More than a third of respondents (36%) said they had to use their child’s college fund to help cover expenses during the COVID-19 outbreak, which has resulted in more than 92,000 deaths in the United States.
“The truth is that even before the outbreak hit, most Americans’ financial margin for error was tiny,” Matt Schulz, chief industry analyst at LendingTree, said in a press statement.
“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.”
One of the adjustments parents have made is turning their homes into classrooms for their children. Sixty percent of respondents said they had to spend money to aid their child’s distance learning. On average, parents spent a little more than $1,000 on supplies like laptops, headphones, and proper software.