CHARLOTTE, N.C., May 19, 2020 /PRNewswire/ -- A new
LendingTree survey shows that the financial fallout from the
Coronavirus pandemic is particularly difficult for American parents
with children. According to the survey of over 1,000 parents with
children under the age of 18, 56% said they are in debt due to the
added financial strain of the pandemic all while balancing distance
learning for children and working from home.
Key findings
- 56% of parents have gone into debt due to
coronavirus-related circumstances. Four in 10 added credit
card debt, and 15% had to turn to a personal loan.
- Single parents are struggling more to pay bills amidst the
coronavirus pandemic. Nearly 1 in 5 parents who are
single, divorced or separated couldn't pay their credit card bill
last month, versus 9% of married parents. Fifteen percent couldn't
pay their rent or mortgage in full.
- 36% of parents tapped their child's college fund to help
cover expenses due to the financial strain caused by the
COVID-19 outbreak.
- 6 in 10 parents had to spend money for their child's
distance learning. On average, they spent a little over
$1,000 on supplies ranging from iPads
and laptops (48%) to office furniture (15%).
- Parents said the hardest part of the coronavirus pandemic
has been trying to work from home while taking care of kids
(31%). They're also struggling to manage their child's
distance learning (19%) while dealing with financial strain caused
by income loss (18%).
"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."
Additional Expenses
Nearly half of parents of young children had to buy a computer
or similar device (like a laptop or tablet) to assist their
children in distance learning. Along with headphones,
software and other school supplies, parents spent
$1,018.50 on average turning their
homes into virtual classrooms.
But it's not just learning supplies that are draining the
wallets of parents across America. Three in four parents agree that
they're spending a lot of money to keep their kids entertained
while stuck at home. Gaming systems like the $300 Nintendo Switch have been flying off shelves
since the pandemic began, as parents (many of whom are working
remotely) grasp at a few moments of respite from working, teaching
and parenting.
Tapping College Funds
During the coronavirus pandemic, anything more than a few months
into the future seems distant, and that includes their children's
college plans. For 36% of parents, immediate financial needs
caused by the coronavirus pandemic have led them to tap their
children's college fund. Another 15% of those surveyed said
that they don't have a college fund for their kids at all.
Stimulus checks cover groceries and other necessities in a
pinch
As part of the Coronavirus Aid, Relief and Economic Security
(CARES) Act, certain parents and children may be entitled to
stimulus checks from the government: $1,200 for adults and $500 for each child. Most (82%) parents
we surveyed received a stimulus check, and 37% of those parents
said they plan to spend their check on groceries. Just
over a quarter said they would use the stimulus check to pay for
household bills.
For the full survey results and additional information,
please visit:
https://www.lendingtree.com/personal/parents-in-debt-due-to-coronavirus-survey/
Methodology
LendingTree commissioned Qualtrics to
conduct an online survey of 1,005 parents of children under the age
of 18. The sample base was proportioned to represent the overall
population, and the survey was fielded April
28-May 1, 2020.
About LendingTree
LendingTree (NASDAQ:
TREE) is the nation's leading online marketplace that connects
consumers with the choices they need to be confident in their
financial decisions. LendingTree empowers consumers to shop for
financial services the same way they would shop for airline tickets
or hotel stays, comparing multiple offers from a nationwide network
of over 500 partners in one simple search, and can choose the
option that best fits their financial needs. Services include
mortgage loans, refinances, auto loans, personal loans, business
loans, student refinances, credit cards and more. Through the My
LendingTree platform, consumers receive free credit scores, credit
monitoring, customized recommendations to improve credit health,
and notification when there are opportunities to save money. In
short, LendingTree's purpose is to help simplify financial
decisions for life's meaningful moments through choice, education
and support. LendingTree, LLC is a subsidiary of LendingTree, Inc.
For more information, go to www.lendingtree.com, dial 800-555-TREE,
like our Facebook page and/or follow us on Twitter
@LendingTree.
Media Contact: Megan Greuling,
704-577-3284, Megan.Greuling@tree.com
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SOURCE LendingTree.com