The Bottom Line:
Back-to-school spending is hitting record highs this year, and a lot of that spending ends up on a credit card. For families trying to stick to a budget and keep extra spending low, the card you use matters. Standard credit cards with today’s average interest rate (just over 22%) can turn a one-time shopping trip into months of extra payments. A low-interest card from a credit union, on the other hand, can ease that unnecessary stress.
Right after Black Friday and the winter holidays, back-to-school shopping ranks as one of the biggest spending seasons of the year. 2026 is no exception.
Families with kids in kindergarten through twelfth grade are expected to spend $43.3 billion nationwide this year, according to the National Retail Federation. Meanwhile, college families are on track to cross $100 billion in back-to-school spending for the first time.
With inflation near 3.5%, 78% of shoppers expect higher prices than last year, and it’s easy to see why so many families are feeling the squeeze earlier and earlier each summer.
Unfortunately, that extra squeeze often lands on a credit card. Whether that ends up being a small relief or a lasting headache usually comes down to the interest rate.
Electronics, clothing, and school supplies make up most of what K-12 families spend each year. Electronics lead the list at an average of $293.11 per household, followed by clothing and accessories at $250.29, shoes at $174.01, and school supplies at $146.45.
Supply lists vary widely by grade level and by school, and clothing costs shift the same way. A kindergartner’s list looks nothing like a middle schooler’s, and growth spurts mean clothing gets replaced more often at certain ages than others.
Watching for sales and comparing name-brand options against lower-cost ones is a common way families keep this category in check as the list grows from elementary through high school.
Some schools issue devices directly to students, while others expect families to provide their own. When a laptop or tablet is genuinely needed, the price range is wide. A basic Chromebook typically runs $200 to $400, while a new MacBook Air starts closer to $1,000, based on current retail pricing. For most schoolwork, the lower-cost option handles the job just fine.
Headphones or earbuds for testing and daily classroom use add another easy-to-forget cost, and those costs can range widely too – from the teens to the hundreds of dollars.
Middle and high schoolers are also often required to buy a graphing calculator, which runs $90 to $160 depending on the model, per current retail listings.
Sports, band, clubs, and field trips often carry costs that families don’t always plan for. Uniforms, instruments, registration fees, or travel costs for away games and competitions can all add up after enrollment.
Youth sports alone average $1,016 per child each year for a single primary sport, according to the Aspen Institute’s Project Play survey, and that cost tends to arrive in smaller pieces spread across the school year rather than all at once in August. Costs vary by activity and by region, so it helps to ask a program directly about the full year’s fees before enrollment.
With college expenses, budgets stretch beyond colored pencils, three-prong folders, and notebooks to items with bigger price tags. Electronics again top the list at $341.95 on average, followed by dorm or apartment furnishings at $194, clothing and accessories at $182.39, food at $153.91, and personal care items at $133.34, according to NRF’s 2026 survey.
Many schools furnish more than students expect: Bed frames, desks, and sometimes basic kitchen appliances are often already provided. Checking the school’s move-in guide before buying anything large can prevent paying for furniture that already exists in the room.
Textbook costs vary a lot depending on whether a student buys new, buys used, rents, or goes digital. Full-time students spend close to $174 a year on new, printed textbooks alone, while used copies typically run 40% to 60% less than the new price for the same title. That difference alone can cover a semester’s worth of school supplies.
A laptop is usually the biggest expense in this category, but it is rarely the only one. Software licenses, printing costs, and subscription tools required for specific courses add up separately and are easy to forget when planning for the semester.
A credit card may be a reasonable way to cover back-to-school costs that rise outside of a family’s monthly budget; however, the interest rate attached to that card determines whether it helps or hurts.
According to the Federal Reserve’s G.19 Consumer Credit report, the average credit card interest rate reached 22.15% in the second quarter of 2026, up from 21.52% in the first quarter. At that rate, a balance that isn’t paid off quickly can add a meaningful amount on top of the original purchase.
For example, a family that charges the K-12 average of $863.86 and carries that balance for a full year at 22.15% would pay roughly $190 in interest alone, assuming the balance isn’t paid down along the way.
The rate itself is the biggest lever here. A 1st Ed Visa® Classic or Visa Platinum card carries a low, fixed interest rate with no annual fee, which is a different structure than many retail store cards and national bank cards. These often carry rates well above the national average.
If a balance does carry over for a month or two during a high-spending season, the cost of doing so is far lower on a low-rate credit card than on a traditional card. Learn more about 1st Ed’s Visa® credit card options.
Responsible use during a busy shopping season is about staying aware of the account while spending picks up. A few healthy habits help keep credit card spending in check during back-to-school season.
To keep a balance from growing:
To catch problems early:
Members in Hanover, Chambersburg, and Greencastle can also stop into a branch in person to seek help or review card activity, which is not something every national bank offers.
Before the semester starts, review the terms together. Compare the interest rate on their current card against a credit union option, and talk through a plan for paying the statement in full each month. Students who already have a card can still open a second one with better terms and use it for larger seasonal purchases while keeping the original card for smaller, everyday use.
Yes. 1st Ed does not charge a balance transfer fee, so moving a balance from a higher-rate card to a 1st Ed Visa® can lower the interest cost right away without an added charge for making the switch. A member service representative can walk through the transfer process and confirm current rates before you move a balance.
Both report to the credit bureaus the same way, and both can help build credit history with on-time payments. The difference shows up if a balance carries over. Retail cards often carry higher interest rates, so a balance grows faster and can be harder to pay down, which affects credit utilization, a factor in credit scoring.
A 0% introductory offer applies for a limited time, usually six to eighteen months, and then reverts to the card’s standard rate, which can be high. A low, fixed-rate card does not depend on a promotional window and applies the same rate before and after any introductory period ends.
Yes. Adding a teen as an authorized user on a parent’s card is one way to start building credit history before they are financially independent. Some families also look at student-specific card options once a child heads off to college and needs their own account.
A low-interest credit card may not shorten the supply list, but it can keep the cost of covering it from following your family into the holiday season.
A 1st Ed Visa® Classic or Platinum card comes with a low, fixed rate and no annual fee. Platinum cardholders also earn 1st Ed Rewards points on everyday purchases, so back-to-school shopping can work toward something later in the year instead of only adding to the bill now.
Membership is open to school employees, students, and families in Adams, Cumberland, Franklin, Fulton, and York counties, as well as employees of 1st Ed’s partner companies.
Learn more about the benefits of a 1st Ed Visa® card, and apply online today.
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