As a school board member, I’ve spent the last few weeks preparing for the new school year and thinking about what students need to succeed within the Selma Unified School District. Candidly, that’s the easy part because for many families in my district, the weeks leading up to the first day of school have been focused on the stress of budgeting for back-to-school expenses.
The cost of back-to-school shopping continues to be a strain on families both in my district and across the country. School supplies, clothing, technology, extracurricular fees, and transportation costs add up quickly, especially here in California, where the cost of living remains high. Getting a child ready for the school year is no longer a routine seasonal expense; it’s a financial burden.
That reality is reflected in how families use credit card rewards. According to a recent analysis, California households redeemed more than $8 billion in credit card rewards in 2024. The average credit card-holding household redeemed $710, while lower income families redeemed an average of $319. That’s more than double the average back-to-school costs. The data also shows that cash reward redemptions increase during July and August, precisely when parents are purchasing school supplies and preparing for the academic year.
Rewards programs are often dismissed as perks, but that characterization misses how families often use them. In California, cash back was the most common way to redeem rewards, showing families rely on rewards programs to help pay the bills. For parents, these rewards provide a small measure of financial flexibility. A few hundred dollars may not seem significant to some families. Other families may have to skimp on other family necessities to ensure their child has the supplies required on the first day of school.
This is why policymakers should think carefully before supporting proposals that would fundamentally alter the credit card marketplace.
Large corporate retailers have spent years advocating for legislation to reduce interchange revenue from credit card transactions. Supporters market these proposals as a way to lower consumer prices, yet little evidence shows those savings are passed on to consumers.
What is certain is that credit card rewards are funded through the existing payment system. If lawmakers reduce the revenue that supports those programs, rewards are likely to become less generous, less widely available, or both. The largest retailers stand to gain directly from lower interchange costs. This means far less certainty that families will see comparable benefits, and many households could end up worse off if rewards programs are weakened or eliminated.
School board members regularly see how economic pressures affect students and their families. As the cost of living continues to stretch families’ budgets, card rewards have become one tool parents can use to navigate those pressures.
Parents deserve policies that improve affordability in meaningful ways. If families are already receiving hundreds of dollars a year to help pay for school supplies and other household necessities, politicians shouldn’t risk taking that away based on promises that may benefit corporations over consumers.
Estella Kessler
Vice President
Selma Unified School District
