Today, we’re taking a closer look at debt settlement.  

For anyone struggling with credit card debt, the available options can sound confusingly similar. When money is already a source of stress, it can be difficult to tell which options may help, which carry significant risks, and which are most likely to fit your situation. 

To help clear up the confusion, we spoke with a GreenPath expert about how debt settlement companies work, along with their potential costs and risks.  

(We’d love your feedback on this new format, as your input helps us shape future episodes! Share your thoughts in our brief survey.) 

Key Moments

1:13 Leanne shares her experience considering a debt settlement company. Listen to her full episode here. 

3:50 How does debt settlement affect your credit? 

4:48 What debt settlement companies may charge 

5:41 Potential tax consequences of debt settlement 

6:58 Potential legal risks of working with a debt settlement company

For a closer look at what to consider, read more about the risks of debt settlement.risks of debt settlement. 

That next chapter reflects Simon’s passion for financial literacy. He co-founded a popular financial education app and recently wrote his first book, Start Young and Build Freedom, which teaches entrepreneurship to teens. 

Drawing on his own experiences, Simon shares money and life lessons throughout the book-including how moments of greed derailed his finances. He also explains why practicing gratitude has become central to his view of a successful life. 

Ready to explore Simon’s lessons on entrepreneurship and financial freedom? Discover the book.

For listeners interested in entrepreneurship, GreenPath recently released the Small Business BootcampSmall Business Bootcamp, a free series of online courses that support new small business owners in building a strong financial foundation.  

Key Moments

2:56 Simon reflects on his childhood and his dream to become a millionaire. 

5:31 He struggles in school but develops other valuable life skills, like coding. 

10:24 He considers the cultural differences between Germany and the U.S. and how they shaped attitudes toward money. 

13:54 He learns a powerful lesson as a young entrepreneur. 

19:00 He gets caught up in the cryptocurrency bubble. 

24:58 He details the story of how he cofounded a successful financial education app. 

31:28 After achieving his childhood dream, Simon experiences “arrival fallacy.” 

33:39 He shares the story of how his book came to life. 

43:41 He shares practical advice from the book. 

46:17 He discusses the role gratitude plays in pursuing financial goals. 

51:50 Simon offers his perspective on debt. 

55:55 Our cohosts reflect on the themes from Simon’s story. 

When groceries, utilities, insurance, and other essentials cost more, a credit card can become the place where the math finally stops working. You charge one expense to make room for another, then watch interest push the balance higher even as you keep making payments.

Maybe an emergency started the debt. Maybe your paycheck no longer stretches as far as it did. Or maybe everyday costs have made it harder to pay more than the minimum. Whatever the cause, carrying credit card debt can leave you feeling like you're working hard without getting ahead.

You’re not the only one feeling that squeeze. In a 2026 survey, 56% of consumers said they use credit cards for basics such as groceries, gas, childcare, or utilities.

If you’re searching for how to get out of credit card debt, the answer isn’t another lecture about spending. It’s a realistic plan that helps you lower interest costs, create room in your budget, and make steady progress. These seven strategies can help you take the next step from wherever you are now.

1. Build a Credit Card Debt Budget

Before you can make meaningful progress on credit card debt, you need a realistic picture of your finances.

Start by listing each credit card's balance, minimum payment, annual percentage rate (APR), and due date. Seeing those details together can help you understand the full picture, avoid missed payments, and decide which account to prioritize.

Spend the next 30 days tracking your income, expenses, and spending habits. Review bank statements, credit card transactions, receipts, and subscriptions. Look for patterns that might be draining money without delivering much value.

Reviewing several weeks of transactions can reveal recurring services, convenience purchases, and other expenses you may choose to reduce or redirect.

The goal isn't to judge your spending. It's to identify opportunities to redirect money toward your debt payoff goals.

2. Cut Expenses for Debt Payments

When essentials already take up most of your income, there may not be much left to cut.

Start with expenses that are optional or flexible, and avoid changes that put housing, food, health care, transportation, or other necessitieshousing, food, health care, transportation, or other necessities at risk.

Depending on your budget, that might mean pausing an unused subscription, comparing insurance or phone plans, negotiating a service bill, postponing a nonessential purchase, or dining out less often. If none of those options applies, that does not mean you have failed. It may simply mean expense cuts are not the most useful strategy for you right now.

Even a small amount can support progress when you apply it consistently. Choose changes you can realistically maintain rather than trying to eliminate every enjoyable expense.

If you do find extra room, putting that money toward a balance can reduce future interest costs, provided you continue making required payments and avoid new charges you cannot repay.

3. Earn More to Pay Off Credit Card Debt

There is a limit to how much most people can cut from their budget, but earning more is not simple or possible for everyone.

Work schedules, caregiving responsibilities, health needs, transportation, and access to reliable opportunities can all affect whether additional income is realistic. If it is not an option for you right now, focus on the other strategies in this list.

If you do have the time and capacity, possibilities may include:

• Picking up occasional overtime or an extra shift, if available
• Taking short-term, seasonal, freelance, or contract work that fits your schedule
• Selling unused items, while being cautious about fees, shipping costs, and scams
• Using a skill you already have for a limited project or service
• Checking whether you qualify for workplace benefits, tax credits, or public assistance that could free up room in your budget

Before committing, consider the true return after taxes, transportation, child care, supplies, platform fees, and the time required. An opportunity that adds stress or costs nearly as much as it pays may not support your goals.

If you receive a bonus, tax refund, gift, or other one-time income, decide in advance how much can safely go toward debt after covering immediate needs. Any extra amount can help, but it does not need to become an all-or-nothing commitment.

4. Ask for a Lower Credit Card Interest Rate

This step is often overlooked.

Options vary by issuer and account, but contacting the company directly can help you learn whether assistance is available.

If you’re experiencing financial challenges, call your creditors and explain your situationcall your creditors and explain your situation. Ask whether they offer options such as:

• Temporary hardship assistance
• Reduced interest rates
• Modified payment arrangements
• Short-term repayment programs

You may not qualify for every option, and terms vary by issuer. If an issuer reduces your interest rate, more of a given payment can go toward principal rather than interest.

The Federal Trade Commission recommends contacting creditors before a debt collector becomes involved to explain what is happening and ask about a payment plan you can manage.

5. Consider Free Credit Counseling

General advice can be useful, but debt decisions are personal.

If you are unsure which approach fits your budget, speaking with a reputable nonprofit credit counselor can help you sort through the options.

A counselor can review your income, expenses, and debts, help you build a realistic budget, and explain possible next steps without judgment.

GreenPath offers free financial counselingfree financial counseling with NFCC-certified counselors. A session is an opportunity to review your full financial picture and ask questions about the options available to you.

One option a counselor may discuss is a Debt Management Program (DMP)Debt Management Program (DMP). Depending on your circumstances and creditor participation, a DMP may combine eligible debts into one monthly payment and may reduce interest rates. Terms vary by client and creditor.

Even if a formal program is not the right fit, a counseling session can give you a clearer view of your choices and a practical place to begin.

6. Create a Credit Card Debt Payoff Plan

Debt payoff rarely follows a straight line. Unexpected bills or income changes can interrupt even a thoughtful plan, so build in flexibility from the start.

A realistic credit card debt payoff plan should cover required payments and essentials, then direct any extra amount toward a priority balance. Set flexible milestones, track balances, and adjust the timeline when circumstances change.

Two common approaches are the debt avalanche and debt snowball. The avalanche targets the highest-interest card first to reduce interest costs, while the snowball targets the smallest balance first for an earlier win.

Choose the method you can follow consistently. Keep making at least the required payment on every account and apply extra money to the balance you are targeting.

Recognize milestones or a return to the plan after a setback in a no-cost way, such as updating a tracker or sharing the progress with someone you trust. A plan that leaves room for real life is easier to maintain.

7. Build Habits That Reduce Reliance on Credit

Paying off debt is a major accomplishment.

Continuing the budgeting, saving, and payment habits that supported your payoff can help reduce the likelihood of relying on credit for future expenses.

As your balances decrease, continue practicing the budgeting and spending habits that helped you get there. If possible, begin building an emergency fund so unexpected expenses don't automatically end up on a credit card.

Financial wellness isn't about perfection. It's about making intentional choices that support your goals over time.

The strategies that help you get out of debt can also help you stay out of debt.

Choose Your Next Step

Getting out of credit card debt rarely happens all at once. It happens through a series of manageable decisions that fit your budget and priorities.

Choose one step from this list to begin today, whether that means reviewing last month’s spending, calling a creditor, or setting a payoff target.

If you would like support turning those ideas into a plan, GreenPath offers free financial counselingfree financial counseling. A conversation can help you identify a practical next move based on your situation. Progress starts with a next step you can realistically repeat.

Student loans can feel like road construction: just when you think you've figured out the detour, another sign points you in a different direction. Their impact also extends well beyond the monthly bill.

In a 2026 SoFi survey of 1,000 U.S. adults with federal or private student loans, nearly 70% said student loan debt had held them back in life, while about 63% said it significantly limited or prevented them from saving for the future.

Those pressures show up in day-to-day decisions: roughly 60% of respondents said student debt had influenced their career or job choice, and 55.5% said it had affected where they chose to live. The survey also found that more than half of borrowers had missed or made a late student loan payment at least once.

Whether you're trying to lower your monthly payment or avoid student loan delinquency, you don't need to become a student loan expert to make smart choices. A few practical steps can help you avoid costly mistakes and keep your broader financial goals in focus.

Federal Student Loan Repayment in 2026: What’s Changed?

For many borrowers, 2026 is the first year in quite some time that student loans feel fully back.

The pandemic-era payment pause is over. Collections on defaulted federal student loans resumed in 2025Collections on defaulted federal student loans resumed in 2025, and many borrowers are once again seeing student loan activity reflected on their credit reports. At the same time, repayment programs and forgiveness options have continued to evolve, creating confusion about what programs are available and which rules apply.

According to Federal Student Aid data through June 2025, approximately 42.3 million recipients held $1.67 trillion in outstanding federal student loans. Student loans remain one of the largest categories of consumer debt in the country.

The result is a lot of uncertainty, even among borrowers who have consistently stayed current on payments.

If you’ve found yourself wondering whether you’re enrolled in the right repayment plan, eligible for forgiveness, or at risk of falling behind, you’re far from alone.

Student Loan Delinquency Is Rising: What Borrowers Should Know

One of the biggest student loan developments in 2026? The return of delinquency reporting.

During the pandemic-era payment pause, many borrowers had little reason to worry about missed payments impacting their credit. That's no longer the case.

After missed payments began appearing on credit reports again, the share of student loan balances past due rose to just over 10% in the first quarter of 2026, nearing pre-pandemic levels, according to New York Fed data.

Why does this matter?

Student loan delinquency can affect far more than your student loans. Late payments may damage your credit score, potentially making it more difficult to qualify for a mortgage, auto loan, apartment rental, or other forms of credit.

How to Check Your Student Loan Status and Repayment Plan

Before researching student loan forgiveness or comparing repayment plans, start with a simple but important step: understand your current situation.

Many borrowers are surprised to discover that their servicer has changed, their contact information is outdated, or they’re enrolled in a different repayment plan than expected.

Understanding Your Student Loan Repayment Options

One common misconception about federal student loans is that every borrower has the same repayment choices.

Federal repayment options depend on current rules, loan type, and borrower eligibility. Options may include Income-Based Repayment (IBR), Pay As You Earn (PAYE), Income-Contingent Repayment (ICR), and the Repayment Assistance Plan (RAP), when available and applicable.

Income-driven repayment plans can help borrowers align monthly payments with income and family size. For some households, this can make repayment more manageable and reduce the risk of delinquency.

However, lower monthly payments can sometimes result in longer repayment periods or additional interest costs over time. Before making changes, it's worth comparing the full financial impact of different options.

The Department of Education’s Student Loan Calculator remains one of the most useful tools for evaluating repayment scenarios.

What to Do If You’re Behind on Student Loan Payments

Many borrowers avoid checking student loan emails because they’re worried about what they’ll find.

Unfortunately, ignoring the issue rarely improves the outcome.

When federal student loans become seriously delinquent or enter default, the consequences can become more significant. Depending on the situation, borrowers could face tax refund offsets, wage garnishment, or other collection actions permitted under federal law.

The Department of Education reported that more than 5 million borrowers were already in default when collections resumed in 2025, with millions more considered at risk.

If you’re struggling to keep up with student loan payments, it may be worth exploring possible solutions such as loan rehabilitation, loan consolidationloan consolidation, or a different repayment plan before delinquency becomes more severe.

The earlier you act, the more options you’re likely to have available.

Don’t Let Student Loans Crowd Out Your Other Financial Goals

When student loan payments increase, it’s easy to focus on them exclusively.

But student loans are only one part of your financial picture.

You may also be balancing:

• Housing expenses
• Credit card debt
• Emergency savings
• Retirement contributions
• Medical expenses
• Family obligations

For example, if you’re aggressively paying down student loans while carrying high-interest credit card debthigh-interest credit card debt, it may make sense to evaluate your overall debt payoff strategy rather than focusing on one balance in isolation.

That’s why budgeting remains one of the most effective tools for managing student loan debt.

Check your full financial picture:

• Confirm that your current student loan payment fits your monthly budget.
• Identify which debt is costing you the most in interest.
• Set a realistic emergency savings goal.
• Decide how you would cover an unexpected expense.
• Choose one next step to take this week.

Student Loan Forgiveness in 2026: What Programs Still Exist?

Student loan forgiveness remains one of the most searched student loan topics, but it is also an area where misinformation spreads quickly. There is no universal federal forgiveness program for every borrower in 2026. Relief generally depends on your employer, repayment history, loan type, or other qualifying circumstances.

Among the federal programs borrowers commonly research are:

• Public Service Loan Forgiveness (PSLF): Eligible government and nonprofit employees may have the remaining balance on qualifying Direct Loans forgiven after the equivalent of 120 qualifying monthly payments while working full time for an eligible employer.
• Income-driven repayment forgiveness: Borrowers enrolled in an eligible income-driven repayment plan may qualify to have a remaining federal loan balance discharged after 20 or 25 years of repayment, depending on the plan and loan type.
• Teacher Loan Forgiveness: Eligible teachers who work full time for five complete and consecutive academic years at a qualifying low-income school or educational service agency may receive up to $5,000 or $17,500 in forgiveness on certain federal loans. The same period of teaching service cannot count toward both Teacher Loan Forgiveness and PSLF.

Before pursuing forgiveness, check your loan type, employer eligibility, repayment history, and current program rules through StudentAid.gov. Your loan servicer can provide account information, but official federal guidance is the best place to confirm whether a program applies to your situation.

Your Next Best Step Might Not Be About Student Loans at All

Sometimes the challenge isn’t the student loan itself.

It’s the fact that student loans are competing with everything else in your financial life.

Rent. Credit card balances. Childcare. Medical bills. Emergency savings. Retirement planning.

When multiple priorities are pulling on the same paycheck, it can be difficult to know where to start. A broader financial wellness strategy can help you identify what deserves your attention first and how student loan repayment fits into your overall goals.

You Don’t Have to Navigate Student Loan Debt Alone

Student loan policies can change. The most reliable approach is to understand your options, stay engaged with your loans, and act early when challenges arise.

Whether you’re looking for help with student loan debt, budgeting, credit card balances, or building a long-term financial plan, GreenPath’s compassionate, NFCC-certified financial counselorsNFCC-certified financial counselors can help you evaluate your options and move forward with confidence. Financial progress doesn’t require having every answer today. Sometimes it starts with a conversation that helps you identify the next right step.

Retirement planning can feel like one of those things you'll get around to eventually. Right after you finish paying off student loans. Or when the kids are older. Or once you've landed the next promotion. Or when life becomes less expensive. (So… never?)

The reality is that retirement planningretirement planning is not a single event. It’s a series of small decisions made over decades. Thankfully, you do not need a six-figure salary, a finance degree, or a perfectly optimized investment portfolio to make meaningful progress.

In fact, one of the biggest advantages in saving for retirement is time. Even small retirement contributions can grow significantly when given years to compound.

And yet, many Americans still feel uncertain. The 2026 Retirement Confidence Survey from the Employee Benefit Research Institute and Greenwald Research found that “just over one in five Americans feel very confident about their ability to have enough money to live comfortably throughout their retirement years.”

That stress is understandable. Housing costs, healthcare expenses, caregiving responsibilities, and debt can all compete for the same paycheck.

Let’s break retirement planning down by age and focus on practical, realistic actions you can take at every stage of life.

Why Retirement Planning Matters at Every Age

Retirement planning is about more than reaching an arbitrary savings number.

It's about creating future flexibility. The ability to decide when to retire. The freedom to work because you want to, not because you have to. The confidence to handle unexpected expenses without derailing your plans.

The encouraging news? Retirement plan design is helping more employees save. Vanguard’s 2026 “How America Saves” report found that participation reached a record 86% among eligible employees in the plans it administers, and 45% of participants increased their savings rate in 2025.

Whether you’re just starting to save for retirement or catching up later in life, your next step matters more than your current retirement account balance.

Retirement Planning in Your 20s: Build the Habit

Your twenties often involve first jobs, student loans, apartment hunting, and figuring out what you're doing for dinner three nights from now. Retirement can seem impossibly distant.

But this decade offers one advantage you’ll never have again: time.

A dollar invested for retirement at age 25 has decades to grow. A dollar invested at age 55 has much less time to work.

What to Focus On

• Start saving for retirement with your employer’s plan if one is available. If your employer offers a 401(k) match401(k) match, try to contribute enough to receive the full match. Think of it as part of your compensation package.
• If a workplace retirement plan is not available, consider an IRA. Eligibility for a tax deduction on traditional IRA contributions and the ability to contribute directly to a Roth IRA can depend on income and tax-filing circumstances, so review current IRS rules before contributing.
• Just as importantly, create a budget that leaves room for long-term goals. Retirement savings becomes much easier when it is treated like a regular monthly expense rather than something you fund only when extra money appears.

A Practical Goal

Aim to save for retirement consistently, even if the amount is modest. Automatic retirement contributions of $25, $50, or $100 per paycheck can help establish habits that last for decades.

Retirement Planning in Your 30s: Balance Today’s Responsibilities with Tomorrow’s Goals

Your thirties often feel like a financial juggling act.

You may be building a career, raising children, purchasing a home, paying off debt, or supporting aging parents. Retirement can get pushed to the side while more immediate expenses demand attention.

This is also the decade when retirement savings contributions can begin to accelerate.

What to Focus On

• If your income has increased since your twenties, consider increasing your retirement plan contributions whenever you receive a raise.
• A simple strategy is to direct part of every future raise toward retirement before you become accustomed to spending it.
• Review your retirement investments periodically to ensure they align with your goals and risk tolerance.
• And if debt is consuming a large portion of your monthly budget, create a plan to address it. High-interest debt can make it difficult to consistently save for long-term goals.

A Practical Goal

Try increasing your retirement savings contribution rate by 1% annually. Small increases often feel manageable while creating meaningful long-term growth.

Retirement Planning in Your 40s: Take Inventory

By your forties, retirement may start feeling more real.

You may have accumulated savings, built home equity, or reached peak earning years. At the same time, college costs, caregiving responsibilities, and other financial pressures often intensify.

This is an ideal decade to step back and evaluate your overall retirement readiness and retirement savings progress.

What to Focus On

• Review all retirement accounts, including old 401(k)s from previous employers.
• Estimate how much retirement savings you may need. While the exact number varies, having a retirement savings target can help guide your decisions.
• Pay special attention to investment fees and asset allocation. Small adjustments can make a substantial difference over the long term.
• It is also wise to review insurance coverage, emergency savings, and estate planning documents as part of your broader financial strategy.

A Practical Goal

Schedule an annual “financial checkup” to review retirement contributions, savings balances, debt, and future goals.

Retirement Planning in Your 50s: Make the Most of Catch-Up Opportunities

Your fifties often represent a critical retirement planning decade.

Retirement is close enough to feel tangible, but there is still time to strengthen your retirement savings and overall financial position.

This is also when many people become eligible for catch-up contributions. Under 2026 IRS rules, people age 50 and older may be able to contribute beyond the standard limit to eligible workplace plans and IRAs. A higher workplace-plan catch-up limit applies to eligible participants ages 60 through 63. Limits and plan features vary, so check current IRS guidance and your plan’s rules.

What to Focus On

• Increase retirement savings wherever possible.
• Review retirement income projections and estimate future expenses, including healthcare costs.
• Consider your planned retirement age and whether adjustments are necessary.
• You may also want to begin thinking about Social Security timing and how it fits within your broader retirement income plan.

A Practical Goal

Direct bonuses, tax refunds, or additional income toward retirement savings when possible. These contributions can have an outsized impact during the final years before retirement.

Retirement Planning in Your 60s and Beyond: Shift Toward Income Planning

Retirement planning does not stop once you retire.

In many ways, the focus of retirement planning simply changes.

Instead of primarily accumulating assets, retirees begin planning how to generate income sustainably while managing market volatility, healthcare expenses, and changing financial needs.

What to Focus On

• Review Social Security claiming strategies and understand how benefit timing affects monthly income.
• Create a withdrawal strategy for retirement accounts.
• Evaluate healthcare coverage, Medicare decisions, and potential long-term care needs.
• Most importantly, revisit your plan regularly. Retirement can last 20 to 30 years or more, which means flexibility remains essential.

A Practical Goal

Build a retirement spending plan that reflects both essential expenses and the activities that bring you joy.

What If You’re Behind?

Recent retirement research points to a broad preparedness gap. In the 2026 EBRI/Greenwald Retirement Confidence Survey, worker confidence declined, with 61% feeling very or somewhat confident they would have enough money to live comfortably throughout retirement.

The important thing is to avoid letting regret become inaction.

The most effective retirement strategy is usually not a perfect one. It's the one you can realistically sustain.

You Don’t Have to Figure It Out Alone

Here’s the part many retirement planning articles skip: lots of people feel behind on retirement savings.

Maybe you started saving for retirement later than planned. Maybe you experienced a job loss, divorce, medical crisis, or period of overwhelming debt. Maybe retirement savings simply weren't your highest priority while managing more urgent financial demands.

You’re not alone.

Retirement planning intersects with nearly every part of your financial life. Debt, budgeting, emergency savings, housing costs, and day-to-day expenses all influence your ability to save for retirement and prepare for the future.

If you’re struggling to balance those competing priorities, GreenPath can helpGreenPath can help.

Our compassionate financial counselors can help you review your budget, explore strategies for managing debt, and create a retirement planning approach that supports both today's needs and tomorrow's goals. Whether retirement feels decades away or right around the corner, building financial confidence starts with understanding your options and taking the next step.

Because retirement planning is ultimately not about predicting the future. It's about creating choices for yourself when the future arrives.

After her boss suggested she reach out to GreenPath, Emily made the call—and felt immediate relief after speaking with a caring financial expert.

With GreenPath’s support, she transformed her approach to money and steadily paid down her debt. 

Years later, Emily is debt-free and looking toward the future with hope and excitement—dreaming of one day owning a cozy home down a quiet dirt road. 

Key Moments

2:19 Emily recalls how money was tight growing up and how her childhood influenced her spending patterns as she became an adult. 

5:12 She started using a credit card for her job that eventually caused her some financial struggle.  

8:00 As she helps her family members celebrate milestones, Emily’s finances get further strained. 

13:35 After she became overwhelmed with her debt, her boss recommended that she reach out to GreenPath. 

16:46 She recounts the relief she felt talking to GreenPath. 

22:35 Emily discusses how her spending approach with her family has changed as she has become more disciplined with her finances. 

25:47 She thinks back to the joyful feeling she had when she became debt- free. 

27:53 Her money that had been allocated towards her debts gets used for some unexpected travel and medical expenses. 

31:19 She shares her future dreams of homeownership. 

39:08 Our co-hosts reflect on the themes and lessons learned from Emily’s story. 

As we continue sharing stories like Emily's, we're also exploring new ways to bring real-life financial journeys to our audience. Soon, we'll be testing a fresh format for Real $tories. More to come!

You start with a reasonable plan: a backpack if last year's zipper finally gave out, a few notebooks, maybe new shoes if the current pair is barely hanging on. Then the school emails arrive, the supply list gets longer, and suddenly there are classroom fees, activity costs, lunch account deposits, and a calculator your child needs by Friday.

That is how a back-to-school budgetback-to-school budget that looked manageable in July can feel stretched thin by August. One trip for basics turns into three, and the “just a few things” list can quickly become a much bigger expense than you expected.

If this season has you adjusting, delaying, or rethinking purchases, you are not alone. Back-to-school spending has become one of the most demanding financial moments of the year for many families, especially when everyday costs are already high.

How Much Do Families Spend on Back-to-School Shopping?

If your back-to-school spending goes over budget, it is easy to wonder if you missed something. But many families are running into the same problem: school supplies, clothing, technology, and activity costs have all become more expensive.

According to 2026 data from the National Retail Federation, families with elementary through high school students plan to spend an average of $863.86 on school-related purchases. When you multiply that across two or three children, the total cost can rival major holiday spending.

At the same time, household budgets are feeling squeezed from multiple directions. The 2026 Deloitte Back-to-School Survey found that 57% of surveyed parents expect the economy to worsen in the next six months, and 31% qualify as “hyper value-seekers.” Even so, these value seekers expect to spend about $610 per child—14% more than other parents—suggesting that deal-hunting is less about strict cutbacks and more about choosing purchases carefully.

When higher everyday costs meet last-minute school needs, even a thoughtful back-to-school budget can get knocked off track.

Why Back-to-School Expenses Multiply So Fast

Back-to-school expenses can snowball quickly. Here are a few common reasons the final total ends up higher than expected:

1. Hidden fees add up: School supply lists usually cover pens, folders, and notebooks. They may not include athletic fees, art class materials, device protection plans, PTA dues, or school lunch account deposits.
2. Kids outgrow things at the worst time: A child might fit into last year’s clothes in June and need new pants, shoes, or uniforms by August.
3. Marketing and peer pressure are everywhere: Back-to-school season brings heavy marketing and social influencesocial influence. Students may ask for specific brand-name clothing, trendy water bottles, or popular backpacks.
4. The “buy it all now” pressure is real: Retailers make it feel like every back-to-school purchase has to happen before the first day, which can create a big short-term hit to your cash flow.

What to Do When Back-to-School Costs Go Over Budget

When you realize your back-to-school spending has gone over budget, pause before making the next purchase. Panic can lead to quick decisions, like putting more on credit cards without a repayment plan or using short-term loans. These steps can help you reset before the balance gets harder to manage.

Step 1: Check What You Already Have

Before buying another item, gather the school supplies, backpacks, and clothing already in your home. Check closets, desk drawers, craft bins, and anything left from the previous school year.

You may find unused loose-leaf paper, binders that still work, or scissors that never made it out of the drawer. Reusing what you already own is not settling; it is a smart way to save money for the back-to-school costs you cannot avoid.

Step 2: Sort “First Week” Needs from “Later” Purchases

Many school supply lists are built for the full year, not the first day. Your child may not need three packs of disinfectant wipes, 50 glue sticks, and four boxes of pencils right away.

Divide your list into two categories:

• First-week essentials: Items needed during the first two weeks of class, such as a basic backpack, required books, core notebooks, and a few outfits that fit.
• Later purchases: Items that can wait until September or October, like winter coats, project supplies, or backup art materials.

Spreading purchases across a few paychecks can ease pressure on your bank account. It may also help you catch post-start-of-school sales on items you do not need right away.

Step 3: Try Swap Groups and Secondhand Options

Children outgrow clothing long before the fabric wears out. Community buy-nothing groups, local parent swap events, and consignment stores can be helpful places to find back-to-school clothing at a lower cost.

A clothing swap with neighbors, friends, or other parents can help you find quality items without spending more. For calculators, sports equipment, or musical instruments, check secondhand platforms before buying new.

Step 4: Talk to the School Early

If school fees, field trips, uniforms, or technology costs are creating real financial strain, contact the school principal, counselor, or front office.

Many schools have fee waivers, supply closets, community resources, or confidential aid funds for families on tight budgets. Reaching out early gives the school more time to help.

Step 5: Be Careful with Financing at Checkout

When money is tight, Buy Now, Pay Later plansBuy Now, Pay Later plans or store credit cards can look like an easy fix. But splitting several purchases into payments can make it harder to see what you owe and when each payment is due.

A missed payment can bring late fees or high interest charges, adding more stress to an already tight season. Whenever possible, stick with cash, debit, or money you have already set aside.

Rebalancing Your Household Finances for the Fall

A seasonal budget spike often calls for two moves: a short-term reset and a plan for next year. Once your immediate back-to-school expenses are under control, take a look at the rest of your fall budget.

For the next few pay periods, look for small places to free up cash. You might pause a subscription, scale back dining out, or delay a non-urgent purchase. Put those savings directly toward your back-to-school balance so seasonal spending does not turn into long-term credit card debtcredit card debt.

Then, start planning for next year. Saving $10 or $15 a week in a dedicated back-to-school fund starting in September can create a useful cushion by next August. That savings can make school supply lists feel less stressful and give you more flexibility to shop sales when they happen.

When Back-to-School Stress Points to a Bigger Debt Challenge

Sometimes, a back-to-school budget crunch is not just about notebooks and sneakers. It can also reveal that a household budget is already stretched by credit card balances, personal loans, medical bills, or other monthly obligations.

If you used credit cards to cover back-to-school expenses and are not sure how you will make the monthly payments, or if you are constantly moving money from one bill to cover another, it may be time to get professional financial guidance.

At GreenPath, certified financial counselorscertified financial counselors can help you look at your full financial picture without judgment. Together, you can create a realistic budget, prioritize payments, and explore options for managing debt. If high-interest credit card debt is making monthly payments difficult, a Debt Management Program (DMP)Debt Management Program (DMP) may help simplify repayment through one monthly payment and, in some cases, reduced interest rates or waived fees from participating creditors.

You do not have to handle financial stress alone. A free, confidential financial assessment can help you understand your options and build a clear path forward.

Your child notices more than you think. 

Maybe they’ve asked why you’re buying a different brand at the grocery store, skipping your usual Friday night takeout, or saying “not this month” when they ask for something new. Maybe they’ve overheard a conversation about bills or noticed that you seem more stressed than usualmore stressed than usual.

Children are naturally observant. Even when parents try to protect them from financial worries, kids often recognize when something has changed.

That doesn't mean they need to know every detail of your family budget. But avoiding money conversations altogether can leave children to fill in the blanks themselves. And for many kids, uncertainty can feel more stressful than a simple, honest explanation.

Talking to kids about money during tough financial times isn't about sharing adult problems. It's about helping children understand what's happening in a way that feels safe, honest, and appropriate for their age.

Those conversations can provide reassurance today while helping children develop healthy financial habits they can carry into adulthood.

Why Talking to Kids About Money Matters

Many parents hesitate to discuss money because they don't want their children to worry. That's an understandable instinct.

But children often sense financial stress whether it's discussed or not. They notice changes in routines, fewer purchases, canceled plans, or tension between adults. Without context, they may make assumptions or even believe they are responsible for changes happening at home.

A calm, age-appropriate conversation can replace uncertainty with reassurance.

Recent reporting shows that rising everyday costs are making these conversations more relevant for many families. A 2026 CNBC article noted that many parents are becoming more transparent with their children about money as household budgets tighten, including explaining why certain purchases may need to wait or no longer fit the family budget.

The goal isn't to have a perfect conversation. It's to create opportunities for children to learn about money and feel secure.

How to Talk to Kids About Money: Start with Reassurance, Not Financial Details

When money feels tight, children are often asking a bigger question:

“Are we going to be okay?”

Start there.

Children need to know that the adults in their lives are working on the situation and making thoughtful choices. Depending on your family's circumstances, that might sound like:

“Some things cost more than they used to, so we’re being extra careful with our money right now.”

Or:

“We’re making some changes to our spending so we can focus on the things our family needs most.”

Notice what these statements do. They acknowledge reality without creating fear.

Young children don't need to know about credit card balances, overdue bills, or every financial concern you may be carrying. What they need is reassurance that they are loved, cared for, and not responsible for solving adult problems.

Tailor Money Conversations to Your Child’s Age

Children understand money differently depending on their age and experienceage and experience.

For younger children, keep conversations simple and concrete. Preschoolers and early elementary-aged kids can begin learning that families make choices about how to spend money. Explaining that your family is choosing groceries over a new toy or a free activity over an expensive outing helps them understand that money is connected to priorities.

Elementary-aged children can begin to understand concepts like budgeting, comparing prices, and planning ahead. A grocery trip can become a lesson in finding value. A conversation about waiting to buy something can become a lesson about saving and decision-making.

Teenagers are often aware of financial issues beyond the household. They may hear about inflation, housing costs, or student debt from friends, school, or the news. Older kids may appreciate more transparency and can learn from conversations about budgeting, credit, saving, and long-term goals.

At every age, the goal is the same: share enough information to build understanding without placing financial responsibility on your child.

Teaching Kids About Money Through Everyday Life

The most meaningful financial lessons often happen during ordinary moments. Psychology Today notes that when parents are under financial pressure, children may experience changes in routine, emotional support, and the overall mood at home.

A trip to the grocery store can become an opportunity to compare prices or talk about making choices. Planning a family activity can show children how a budget helps you decide where to spend money. Saving for a goal, whether it's a family outing, a special purchase, or a holiday tradition, helps children see that budgeting isn't only about saying no.

It’s about making room for what matters most.

You can also invite children into small, age-appropriate decisions:

• Comparing prices while shopping
• Planning a low-cost family activity
• Setting a savings goal
• Talking about needs versus wants

These experiences help children understand that money decisions and family budgetingfamily budgeting are things families manage thoughtfully—not something to fear. They also show that managing money is an ongoing process: families plan ahead, compare prices, delay some purchases, set goals, and make intentional choices about what matters most.

Be Honest About Financial Stress Without Creating Anxiety

There is a difference between being transparent and sharing financial worries in a way that children aren’t equipped to handle.

For example, saying “We’re broke” may feel like an honest expression of stress, but a child may interpret it as meaning their home or security is at risk.

Instead, focus on language that acknowledges challenges while emphasizing problem-solving.

Children learn not only from what adults say but also from how adults respond to challenges. Seeing parents approach financial decisions calmly can help children develop confidence and resilience.

Make Sure Children Don’t Feel Responsible

Many children respond to financial stress by looking for ways to help.

A child might say they don’t need a birthday gift, offer to quit an activity they enjoy, or worry about asking for something they want.

Those reactions often come from love and concern. But children should not feel responsible for solving family finances.

Thank them for caring and remind them that managing money is an adult responsibility. Their job is to continue learning, growing, and being a kid.

Free Support Is Available

Money conversations don't have to be perfect to be meaningful. By talking openly with children, using age-appropriate explanations, and modeling thoughtful decision-making, parents can help kids build confidence and a healthier understanding of money.

The lessons children learn during challenging financial seasons can stay with them long after the immediate challenge has passed. If money stress is affecting your family, GreenPath’s certified financial counselorscertified financial counselors can help you review your budget, manage debt, and create a realistic path forward—at no cost.

After facing significant personal hardship during and after a marriage, including debt, a declining credit score, and the challenge of starting over, Basiliso began the difficult process of rebuilding. Moving back in with family became a turning point, giving him the space to stabilize, save, and regain control of his financial future.

The deaths of his ex-wife and mother brought both emotional and financial challenges but also highlighted the importance of preparation. Through life insurance and Social Security survivor benefits, Basiliso was able to navigate complex systems and access critical financial support during times of crisis.

These lived experiences shaped his professional path. Today, as a certified financial social worker, Basiliso supports others at the intersection of money and mental health by advocating for caregivers, addressing financial trauma, and helping clients build plans that reflect their real lives.

Basiliso offers practical, adaptable strategies grounded in one core truth: personal finance is never one-size-fits-all. Listen for an honest look at resilience, preparation, and the emotional and practical sides of money.

Key Moments

3:28 Bas talks about growing up in a lower income household and how this shaped him as he entered adulthood. 

8:42 He discusses the life and financial challenges he faced during his separation. 

13:42 He recalls how life insurance and social security death benefits were pivotal to his finances after the death of his ex-spouse. 

18:04 Bas becomes a Certified Financial Social Worker. 

21:52 He shares his approach to integrating finances into his social work. 

24:29 He speaks about financial stress and financial abuse, both in his work and personal life. 

26:46 He gives his favorite financial tips. 

36:57 Bas considers his financial goals and dreams, including tackling his business debt. 

42:58 Our cohosts reflect on the themes from Bas’ story. 

Thinking About a Debt Management Program? Start Here.

Maybe you’ve been making payments but not seeing the balance budge. Or one expense turned into a balance that’s now hard to ignore. However you got here, if you’ve started looking into a Debt Management ProgramDebt Management Program, you’ve probably also got a list of questions.

That's a good thing! The more you understand your options, the more confident you'll feel moving forward. Let's walk through the most frequent questions together.

What is a Debt Management Program and how does it work?

A Debt Management Program (DMP) is a structured plan offered by nonprofit credit counseling agencies, such as GreenPath, to help individuals pay off unsecured debts through a single, manageable monthly payment.

Each payday, you deposit funds into a secure GreenPath account, and we pay your creditors on your behalf.

Who is eligible for a DMP?

The DMP is designed for people with unsecured debtunsecured debt, such as credit cards, department store cards, medical bills, or personal loans, and the program is tailored to your unique financial situation.

A DMP can be a smart solution for those struggling with high-interest credit card debt. It's especially valuable if you're:

• Making only minimum payments and not seeing progress
• Juggling multiple credit card accounts
• Facing mounting interest that makes it hard to pay off balances

How much could I save on a DMP versus repaying debt on my own?

While every situation is different, many people see meaningful savings with a DMP. For the average DMP client:

• Interest rates can drop from about 28% to 6.5%, helping more of each payment go toward your balance
• Monthly payments decrease by about $217
• Interest savings add up to roughly $33,000 over time
• Debt is paid off faster (about 7 years sooner)

How do I know a DMP isn’t a scam?

GreenPath is a trusted national nonprofit. Since 1961, we've helped households across the country repay billions of dollars in debt. We don't work for banks, but we do partner with more than 650 banks, credit unions, and employers nationwide. Creditors often support DMPs because they see the results: people repaying debt in a manageable way that leads to long-term stability.

How much does it cost for a debt management program?

DMP setup fees and monthly fees vary based on your state of residence and debt amount. On average, GreenPath clients are charged a one-time enrollment fee of $35 and a $31 monthly fee. This is minimal considering the amount of money our clients typically save in waived late fees, waived over limit fees, and reduced credit card interest charges.

Do I have to sign a contract if I begin a debt management program?

There is an agreement you will sign when starting a DMP. The agreement specifies program details and gives us permission to pay creditors on your behalf. The agreement is not binding, and you can cancel the program at any time.

Will enrolling hurt my credit score?

GreenPath does not report to credit bureaus (Experian, TransUnion, or Equifax). You may see a temporary dip at first, especially as accounts close.

Over time, many people see improvement. Consistent, on-time payments and decreasing balances are positive signals your credit history will reflect.

Are debt management programs different from debt settlement?

Yes. Debt management programs are designed to pay off the entire amount you owe in 3 to 5 years. If we can lower your interest rates, the total amount you pay to your credit card company is typically less than if you paid on your own.

Debt settlement typically involves requesting credit card companies to forgive a portion of your debt in exchange for a lump sum payment. Be sure to understand the risks of debt settlementunderstand the risks of debt settlement if you’re considering this option.

What is the difference between debt management programs and debt consolidation?

A DMP is set up through a nonprofit credit counseling agency like GreenPath. Instead of taking out a new loan, your existing debts are included in a structured repayment program. Your creditors may agree to lower interest rates and fees, and you make one consistent monthly payment based on what fits your budget.

Debt consolidationDebt consolidation typically means taking out a new loan (or using a balance transfer card) to combine multiple debts into one. While this can simplify payments, it doesn’t always reduce interest rates—and approval often depends on your credit score.

Can I keep some credit card accounts open?

Since the goal of a DMP is to eliminate your debt, this process begins with closing the credit cards included in your program. If you need to keep one card for emergencies or business, we can evaluate your options together.

What is a proposal?

A proposal is a document sent to your creditors requesting adjusted terms—like a new payment amount, lower interest rate, or other concessions.

It’s what helps make repayment more manageable by aligning your accounts into a more consistent structure.

What are concessions?

Concessions are the adjustments creditors may agree to, such as reduced interest rates, extended repayment periods, or waived fees.

These changes are a big part of what makes a DMP effective—lowering costs and making payments more predictable.

How long will the program take?

Contracts are typically for the maximum period allowed by the state (60 months). Early completion due to creditor concessions will successfully close your DMP.

Still have questions? Let’s talk.

You can connect with HUD- and NFCC-certified GreenPath counselors during business hours for a free, confidential consultation and also check out our FAQ page.FAQ page.

And if you’re already enrolled in GreenPath’s DMP, you have access to a private online community where people share advice, ask questions, and support each other along the way.