The End of Summer, the Start of Spending
As August winds down and September looms just around the corner, families across the country are gearing up for the return to school. The annual shopping trip for supplies is a ritual for many, marking the shift from long summer days to the routines of a new academic year. New sneakers, backpacks, and maybe even a tablet might be on the shopping list, but how is today’s economic environment impacting prices? Let’s break it down.
The Price of Preparation: Spending Hits New Highs
This year’s back-to-school shopping season started earlier than ever, with 67% of shoppers purchasing items in July, according to the National Retail Federation (NRF). With economic concerns top of mind, many families tried to beat higher costs by taking advantage of July sales and promotional events.
Families with students in elementary through high school plan to spend an average of $858.07 on clothing, shoes, supplies, and electronics, slightly down from $874.68 in 2024. Still, overall spending is expected to reach $39.4 billion, up from $38.8 billion last year. According to the US Chamber of Commerce, this is the second-largest spending event of the year, trailing only the holidays.
Where families shop is also shifting, with 55% are buying online, followed by department stores (48%), discount stores (47%), and clothing stores (41%). Nearly half of millennial parents and 75% of Gen Z parents are expecting to use social media as part of their back-to-school shopping journey.
Inflation vs. Behavior: How Families are Coping
Even as overall inflation shows signs of easing, tariffs on imported goods and higher costs for essentials are still squeezing family budgets. According to Axios, many parents are hunting for deals, spreading purchases across multiple weeks, or reusing supplies to make ends meet. In fact, 52% of parents surveyed in Deloitte’s annual Back-to-School Survey said they are anxious about the potential for higher prices, underscoring just how much inflation concerns remain top of mind.
However, spending continues to grow. Electronics remain non-negotiable as schools emphasize digital learning, while rising wages and low unemployment have given some households a cushion to keep spending steady, even if it means dipping into savings. The result is that families may feel their dollar doesn’t stretch as far, but they’re still prioritizing education.
Where the Money Goes: Key Spending Categories
The most expensive category for both K–12 and college shoppers is electronics, with average budgets of $295.81 and $309.50 respectively. Tablets, laptops, and headphones are now standard-issue items for most students, driving up household costs.
After electronics, K–12 families are budgeting $249.36 for clothing and accessories, $169.13 for shoes, and $143.77 for school supplies. For college students, spending looks a little different: $191.39 on dorm or apartment furnishings, $166.07 on clothing, $140.24 on food, and $117.95 on personal care.
The Annual Investment in Education
When it comes down to it, parents will always prioritize education, even as budgets tighten. Back-to-school shopping remains a blend of necessity, tradition, and excitement for the year ahead. While it may leave wallets stretched, families are already bracing for the next wave of seasonal spending: the holiday shopping rush that will be here before we know it.
