The financial landscape surrounding back-to-school shopping is under significant pressure this year. Inflationary trends and newly implemented tariffs under President Trump’s administration are key factors driving cost increases. With the producer price index indicating a substantial rise in manufacturing costs for essential school items since 2019, families are experiencing heightened financial strain.
Bankrate’s survey of over 2,600 adults reveals that 20% of shoppers find their budgets stretched by back-to-school expenses. Further compounding this, Intuit Credit Karma notes that 39% of parents cannot afford these costs, with 44% resorting to debt—a substantial increase from last year’s 34%.
The National Retail Federation forecasts a total expenditure of $39.4 billion for K-12 students, with an average spend of $858.07 per family, slightly down from the previous year. Deloitte’s survey aligns, projecting $30.9 billion in spending or roughly $570 per child, despite higher prices.
Trump’s tariff strategy, initially set for April and now deferred to August, has yet to fully impact consumer prices. As tariffs likely increase costs further, families are taking preemptive measures. Katherine Cullen of the NRF highlights consumer shifts towards early shopping, discount retailers, and summer sales.
Deloitte reports that 75% of parents are willing to switch brands due to cost, up from 62% the previous year, while 65% will choose more affordable retailers over preferred ones. Intuit Credit Karma data shows 56% are cutting nonessential purchases.
According to Coresight Research, 62% of shoppers are starting their back-to-school shopping before August, an increase from last year’s 54%. This strategy aims to mitigate potential price hikes.
Financial strain extends beyond supplies, with 53% of parents willing to incur debt for extracurricular activities, and 46% for back-to-school items to ensure their children socially integrate, as per NerdWallet’s report.
To manage costs effectively, families are advised to explore resale sites for gently used goods, utilize price-tracking tools, and capitalize on sales-tax holidays. These strategies will aid in controlling discretionary spending while maintaining financial discipline amidst rising costs.
