Parents Gambling to Cover School Costs

04 November 2026

A new survey reveals that as inflation and rising household expenses strain family budgets, some parents are resorting to risky measures to afford back-to-school supplies, including gambling.

Five percent of U.S. parents in a Talker Research survey last summer said they gambled to pay for school expenses, according to Beyond Finance, which commissioned the research.

The survey asked 2,000 U.S. parents what they had done to afford back-to-school costs. Of the parents who admitted to gambling, 8% used their own money, 15% took out personal or payday loans, and 16% sold possessions. Parents also resorted to using "buy now, pay later" options (23%) and accumulating credit card debt (20%). Some parents even skipped rent or mortgage payments to get their kids back to school.

Spurred by price increases, parents are struggling to foot the bill. Rising costs for essentials like clothing, food, and housing have eaten into budgets, forcing families to reprioritize spending.

Deloitte, JLL and KPMG estimate average back-to-school spending at about $800 per child, while Good Morning America/IPSOS reports a slightly higher figure of $885. The Groundwork Collaborative and The Century Foundation estimate that an average family spends about $175 on back-to-school expenses.

According to PlayUSA, a public-benefit site for the gambling-industry trade association American Gaming Association, using gambling to generate money for essential expenses raises responsible gaming concerns. "Using gambling to generate money for essential expenses is financially risky because gambling outcomes are uncertain and the expected return is negative for players over time... when gambling competes with basic household needs, it can lead to financial harm."

"We are concerned about the growing number of parents who are engaging in exceptionally high-risk financial behaviors," Beyond Finance CEO Stephen Stern said in a published statement. "They're saying, essentially, 'I'm in so much debt, even payday loans don't help, so desperate times call for desperate measures.'"

Crave for Promotion

At times it costs parents even more to have their kids conform to social norms of proper dress. Marketing pressures prevent parents from keeping up. When kids bring home lists of expensive items they believe will help them fit in, parents often feel obligated to spend beyond their means.

According to the Talker survey, 70% of parents feel pressured to buy items to feel like they belong. Then, 61% regret the purchases, and 42% feel guilty if they can't cover expenses. These financial pressures affect parents' self-perception and sense of identity.

Back-to-School Budget Busting

For 70% of parents, back-to-school shopping was the most stressful event of the year, with 58% finding it more stressful than the holidays.

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To cover expenses, parents reported cutting back on other spending. Beyond Finance found 35% cut back on dining out, 30% on hobbies, 28% on personal care, 23% on savings, 20% on debt payments beyond the minimum, and 15% on rent or mortgage payments.

This impacts debt repayment, with 31% of U.S. back-to-school shoppers last year saying buying supplies would put them into debt, up 8 percentage points from 2023. About 31% of parents couldn't afford back-to-school shopping last year, and 36% were stressed about the prospect.

Experts warn that the high costs of basic school supplies can lead to a "back-to-school parent trap," where parents feel pressure to buy expensive items to avoid their children feeling left out. This pressure can lead to financial stress and debt for many families.

To avoid the back-to-school parent trap, experts recommend:

- Have your child pick their own school supplies within reason. Set limits if you're on a tight budget. Plan ahead to avoid last-minute runs.

- Make it a special event. Use the opportunity to teach budgeting while gathering supplies. Focus on your family's values and look for teachable moments.

- Invest in quality items that will last. When you buy durable products, they can be used for years.

- Know when to make exceptions. If facing financial hardship, parents may need to temporarily prioritize differently.

However, gambling is not an appropriate option for covering school expenses. Parents should educate their children about the dangers of gambling and seek community resources like financial counseling to manage back-to-school stress without resorting to risky financial behaviors.