32% of Back-to-School Shoppers Will Use BNPL and Credit Cards. Which One Is Better? (2024)

The first day of school is quickly approaching for kids. You can’t hold off on buying necessary school supplies forever, but what if you’re strapped for cash? Personal finance experts advise against using credit cards or Buy Now, Pay Later plans for purchases you can’t afford, but your options may be limited if you’re staring at a long list and juggling other necessities.

By the numbers, 11% of US adults are using BNPL to cover school supplies this year, and 21% are using a credit card that they plan to pay back over time, according to CNET’s latest back-to-school survey. Either option can end up costing you a lot of money.

Alaina Fingal, founder of The Organized Money and CNET Money’s expert review board member, is also a mom of two school-age daughters. She knows firsthand the stress of back-to-school costs and how it can be a strain if you don’t plan ahead.

This year, Fingal spent about $800 on her two daughters for school supplies, uniforms and book bags. She started saving a few months ago to prepare for the school season and to avoid pulling one lump sum from a paycheck.

Fingal recognizes that saving in advance isn’t everyone’s reality and that borrowing is a must for some families to cover costs, especially with multiple kids. Using a credit card or BNPL can help you afford the expenses now, but which is best for avoiding financial woes? Here’s what Fingal recommends.

Which is better, BNPL or a credit card?

Although there are significant differences between BNPL plans and credit cards, they actually have a lot in common. You can quickly pay for what you need and get your items right away. However, both borrowing options can land you in hot water financially if you can’t manage them.

Using BNPL plans for school supplies

A BNPL plan lets you take advantage of back-to-school sales and get what you need now but make smaller payments over time. The best BNPL plans let you avoid paying interest or fees.

Most BNPL plans offer a set payment schedule -- typically four equal payments over six or eight weeks -- and don’t charge fees if payments are made in full and on time. The set plans can help you avoid the temptation of making more purchases on a card and maxing out a credit limit.

“Buy Now, Pay Later is great for people who possibly have poor credit and can’t get a credit card,” Fingal said. It could also be a less risky option if you’re not in the habit of managing a credit card and would like to spread out payments.

You can work BNPL payments into your budget, but Fingal recommends doing so sparingly. Before committing to a plan, ask yourself if you can afford to keep this consistent line item in your budget until the plan is fully paid off.

Using several BNPL plans can quickly add up, and so can the fees if you aren’t able to pay them on time, Fingal said. If you have multiple BNPL payments for back-to-school purchases, it could also hamper your efforts to set aside money for other goals, like saving for Christmas or building your emergency fund.

“It creates this cycle where you’re unable to save because you have all of these different expenses and now you continuously need BNPL in order to do anything,” she said.

Using a credit card that you won’t pay in full right away

Using a credit card to cover back-to-school costs can seem like an easy, convenient way to get your items in time for the first day of school without signing up for a BNPL plan, especially if the card is already in your wallet.

Unlike BNPL plans, you won’t pay any money upfront when you put the purchase on a credit card. So long as you make the minimum payment each month on time, you can eventually pay off your purchase. However, it would likely take longer to pay off a credit card balance if you start accruing interest on your balance and end up with credit card debt.

If you’re using credit cards that you can’t pay in full right away, do your best to take on as little debt as possible. Unlike with BNPL, you won’t get a set repayment plan, so you’ll also need to be more diligent about creating and sticking to your own payment schedule.

Here’s a breakdown of the big differences.

Read more: Should You Use a Credit Card Installment Plan?

If you consistently pay your credit card bill in full and on time, there are additional benefits to using a credit card. Managing a credit card responsibly can help you build your credit score, and you may be able to earn rewards like points and miles for travel or cash back. However, if you need to carry a balance, the interest charges you accrue could wipe out the value of any rewards you earn.

Which borrowing option is best?

If you shopping at three different stores, it may be easier to swipe a credit card and focus on when one bill is due. However, if all three stores offer BNPL plans, you may be tempted to open three BNPL plans with different amounts and due dates that you’ll be responsible for managing.

If you set up automatic payments and include your payments into your budget, both borrowing options could work, but you may find yourself juggling more if you open several payment plans or use a mix of payment options.

Another affordable option to consider

If your kids don’t go back to school until late August or early September, you may consider Amazon Layaway if you have Amazon Prime. To use it, just shop as you usually would on Amazon, placing items in your Amazon cart. At checkout, you can choose Amazon Layaway and pay 20% of the total cost at that time, then make four equal payments every two weeks. When the balance is paid, Amazon will ship your items.

“It gives you time to balance out that money and budget for those expenses, and bake them into your paydays,” Fingal said.

If you miss a payment, you won’t receive the items, and any payments you’ve made will be refunded. So yes, you run the risk of not having the items you need in time for school or missing a good deal. But it can help you avoid overspending with BNPL plans or credit cards, which may lure you into making a purchase so you can get it right away without thinking about whether you can afford the payments.

The most challenging part of Amazon Layaway may be the time factor. “Most people are not thinking about it two months in advance,” Fingal said. “It does require you to plan and think about those things a little bit more.”

Find ways to save so you can borrow as little as possible

It may seem like you have to pay for every school expense out of pocket. That can add up, but there are also ways to try to borrow less. Fingal still recommends saving in advance as much as possible, but looking for other ways to cut back on costs.

Start by shopping at home first. Seeing what supplies are left over from last year can help you cut back costs. “I had a box of things that my kids could reuse, like some of their binders and some of their folders,” Fingal said. You may also be able to wash your child’s book bag to squeeze another year of use out of it.

Team up with family and friends who have their own back-to-school lists. You can often buy school supplies in bulk at a wholesale store like Sam’s Club or Costco, then split the items and costs with other parents. For basics like pens or tissues, you’ll often spend less per unit than if you bought one item on its own.

You can also look for local school supply drives within your community to get school supplies or help with uniforms. Check with your local United Way, Salvation Army, YMCA, local churches and other nonprofits that may offer giveaways.

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