Back-to-school shopping is taking a bite out of family budgets everywhere this year, and it’s easy to see why. Data from the National Retail Federation shows the average family plans to spend $874 on school supplies, clothing, electronics and other essentials for the 2024-25 academic year, and all at a time when inflation is leaving families with less disposable income.
But, credit cards can actually help you fight inflation on school supplies and other family expenditures — that is, if they are used the right way.
For the most part, this means picking a credit card with a sizable bonus and useful rewards categories, maximizing any purchase protections that apply and having a plan to avoid costly credit card interest. This can occur if you have the cash to pay your balance in full after you charge back-to-school expenses, or if you utilize a credit card that has an intro 0% APR for purchases.
Compare credit card sign-up bonuses
If you’re in the market for a new credit card specifically for back-to-school shopping, you should see if you can earn a welcome bonus right off the bat. Most cash-back credit cards offer sign-up bonuses of $200 or more when you meet a minimum spending requirement that may be as low as $500 within three months.
Regardless, you should compare new card offers to see how their bonuses stack up based on minimum spending requirements. Ideally, you’ll pick a card with a large bonus and a minimum spending requirement you can easily meet with everyday spending and bills. That said, you should also make sure it’s a card that makes sense for your lifestyle long term. Sign-up bonuses can be a great incentive, but it’s generally not the best practice to sign up for a new card exclusively because of a welcome offer.
Maximize rewards on school supplies
Next, make sure you pick a card that offers a high flat-rate of cash back or bonus rewards in categories you can maximize with back-to-school shopping. Examples of credit card bonus categories where school supplies could apply include:
- Grocery stores
- Drugstores
- Department stores
- Online shopping
- Department stores
Fortunately, there are all kinds of credit cards that offer bonus rewards in some of these categories and others. Some popular options include:
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Consider other bonus rewards categories that apply
Also remember that school expenditures don’t stop after you stock up on pens, pencils, notebooks, calculators and other essentials. Having kids can mean driving them back and forth to extracurricular activities and constantly filling up your gas tank, having to stop for occasional fast food meals and buying snacks for not only your children but also their friends.
These are some of the reasons you should consider other bonus rewards categories different cards can offer. Those who are constantly fueling up can look for the best credit cards for gas, whereas big food spenders can consider one of the best grocery credit cards instead.
You can even pair a few different rewards credit cards to ensure you’re maximizing spending on back-to-school supplies, gas, groceries and any other categories you spend heavily in.
Decide if you need 0% APR
You’ll get the most out of a rewards credit card if you have the cash to pay your balance in full every month with no exceptions. Yet, we all know there are situations where you may need to carry a balance from one month to the next no matter what.
If you find yourself in this position as you shop for back-to-school supplies this year, you should look into cash back credit cards that offer 0% APR on purchases for a limited time. These cards let you skip interest for up to 12 months or longer, although the regular variable APR they normally charge applies thereafter.
Ultimately, this means 0% APR credit cards can benefit you by helping you save on interest, but only if you have a plan to pay off your debt before the intro offer ends.
Look for cards with purchase protection
Maybe you need to invest in especially expensive school supplies this year, such as a new laptop computer, a new set of furniture for a dorm room or a new smartphone. In this case, you may want to see which credit cards offer the best purchase protections.
For the most part, we are talking about credit cards that offer purchase protection against damage or theft, extended warranties on items that come with a manufacturer’s warranty or both. Plenty of rewards credit cards offer both of these important coverages and more.
The bottom line
Looking for a new credit card for back-to-school makes a lot of sense, but you should think beyond the first few days of school toward what else you might need from your card for the rest of the year. This means looking for a credit card with features you want to have, as well as rewards rates that work well with your typical spending. You’ll also want to make sure your credit card offers redemption options that make sense for your goals, whether you prefer to earn cash back you can redeem for statement credits or gift cards, or you want to earn rewards points for travel.
Also, make sure you have 0% APR for a limited time or a feasible plan to pay your credit card balance in full right away. If you charge back-to-school expenses and other bills to a credit card without a plan to avoid interest, everything you buy will cost that much more.
