As back-to-school shopping ramps up, a significant number of families are feeling the financial strain, with nearly one-third expecting to go into debt to cover the rising costs of essential school supplies, CNBC reported.
The back-to-school season is in full swing, but for many families, it's bringing more financial stress than excitement. Recent reports indicate that nearly one-third of families anticipate going into debt as they shop for school supplies this year, a statistic driven by rising prices.
According to a July survey by Bankrate, 31% of back-to-school shoppers expected to take on debt to cover the costs. Similarly, a July report by Intuit Credit Karma polling more than 1,000 adults revealed that 34% of parents are likely to rely on credit to manage their back-to-school expenses. Despite inflation cooling some, these findings highlight the ongoing financial challenges many families face.
The rising costs of school essentials are partly to blame. Key items like backpacks have seen significant price increases, making it harder for parents to afford everything on their children's school supply lists. A CNBC analysis using the producer price index — a key measure of inflation — tracked the cost changes of school items over the past five years, revealing substantial hikes.
However, there is a silver lining. According to Bankrate, a majority of families feel that back-to-school shopping is less burdensome this year compared to 2023. The U.S. Department of Labor also reported that the consumer price index, a critical inflation gauge, rose by only 2.9% in July — its lowest increase since March 2021. Despite this improvement, financial experts, such as Ted Rossman, a senior industry analyst at Bankrate, warn consumers not to become complacent, emphasizing the importance of careful budgeting.
According to the National Retail Federation, families with children in elementary through high school plan to spend an average of $874.68 on school supplies this year. Although this figure is slightly lower than last year's record of $890.07, total back-to-school spending, including for college students, is expected to reach $38.8 billion, making it the second-highest tally ever.
Schools' extensive supply lists further compound the pressure on parents. Over 75% of parents said they believe that schools ask for too much, according to a WalletHub report. Yet, even with tight budgets, 85% of parents surveyed by Deloitte said they could be persuaded to splurge on "must-have" items, highlighting the strong influence of trends and brand preferences.
Trendy items like Adidas Campus sneakers, and North Face Jester backpacks are topping students' wish lists this year, driven by the pressure to fit in.
"Young people have even more pressure to keep up," said Casey Lewis, a social media trend expert, emphasizing that "popularity and perceived coolness" often hinge on having the right products.
Consumer savings expert Andrea Woroch suggests several strategies to manage these financial pressures, including shopping for gently used items, using price-tracking tools, and stacking discounts. She also recommends reusing last year's supplies, such as partially used notebooks or cleaned-up backpacks, to reduce costs.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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