300 Plus is currently only worth PLN 233

The new school year is approaching for almost 5 million children. The cost of sending children to school in Poland has increased by 15% this year. The real value of the 300 Plus benefit is also falling, which currently amounts to only PLN 233.

About the author

Pawel Majtkowski - analyst eToro on the Polish market, which shares its weekly commentary on the latest stock market information. Paweł is a recognized expert on financial markets with extensive experience as an analyst in financial institutions. He is also one of the most cited experts in the field of economy and financial markets in Poland. He graduated from law studies at the University of Warsaw. He is also the author of many publications in the field of investing, personal finance and economy.

Inflation will hit parents

On September 1, students return to school. Ascending inflation however, it means that the expenses related to sending children to school will be a greater burden on the family budget this year. Over the last year, prices in Poland increased by an average of 15,6 percent. Much of this increase is due to rising energy and food prices. The costs borne by parents in connection with the beginning of the school year also increased significantly during the year. And so according to GUS home furnishings increased by 8,7 percent during the year, products and services in the education category are more expensive by 6,2 percent. and clothing and footwear by 4 percent. Although children usually use reduced or free travel by public transport, whoever transports children to school with their own transport incurs much higher costs today than a year ago. According to the Central Statistical Office, this category recorded an increase in prices by as much as 22,9 percent during the year. This means that the costs of sending children to school will be around 15% this year. higher than a year ago.

Inflation increases the prices of virtually all products and services on the market. Thus, the real value of the benefit from the Dobry Start program, popularly known as "300 Plus", is reduced. It is paid from June to September for every child up to 20 years of age in education, regardless of their parents' income. It amounts to PLN 300 and its value has not changed since the program started in June 2018. The lack of valorization of this amount causes that its real value is constantly decreasing. Currently, this benefit is worth only PLN 233 (78% of the original value) in prices from June 2018, while a year ago it was still PLN 270. If inflation is double-digit in the next year, this value will drop to PLN 210, and when inflation exceeds 14%. y / y it will drop below PLN 200.

Expenses are rising

Expenditure related to the beginning of the school year is increasing in many countries despite the emerging risk of recession, which usually results in the opposite behavior of consumers. According to a study by Deloitte¹ the American family will spend 8 percent this year due to the return of the child to school. more than a year ago. It will also be 27 percent. more than in 2019 - the last year before the pandemic.

The number of students in Poland at the end of the previous school year (in June 2022) was 4,75 million. Thanks to the children of refugees from Ukraine, more students will probably start the new school year.