Going back to school requires a long list of stationery, uniforms, and other essential items – and parents across the US are tightening their belts compared to 2023’s record-high school spending.
New School Year
The new school year is upon us, and families are heading back to stationery stores to get everything their students need for a successful term. And many households are coming into the new school year with strained wallets and a stricter budget.
Last Year Stunned
Last year consumers spent a whopping $41.5 billion on back-to-school equipment, based on estimates from the according to estimates from the National Retail Federation – the highest expenditures for the new school year on record.
Record Highs
It amounted to an average of $890 per household, expenditures that were 12% higher than the previous record set in 2021.
Less Spending in 2024
However, amid the pressure of high costs and an economic downturn, American families are projected to spend more conservatively this year. The NRF estimates $38.8 billion in back-to-school spending this year, amounting to $874.68 per household.
A Major Household Expense
This makes it a major expense for most families, particularly low and middle-income households, in the same territory as Christmas holidays and other holiday and celebration spending.
Inflation-Weary Families
A new study by personal finance company WalletHub supports the inflation-weary attitude some consumers are bringing to the back-to-school season.
Parents Are Unimpressed
According to WalletHub, 79% of parents, or more than 3 out of 4 study participants, believe that the school requirements for the back-to-school season are excessive and burdensome.
Schools Asking Too Much
“More than 3 in 4 parents that we surveyed think that the schools ask them to buy too much during the back-to-school season,” said WalletHub researcher Chip Lupo.
“Out of Control”
What’s more, 86% of the participants believed that the costs associated with education are too expensive overall, even agreeing that the industry costs are “out of control.”
Changing Spending Habits
According to WalletHub, spending habits for families are liable to change this back-to-school season. Many parents are likely to stick strictly to classroom supply lists, rather than adding discretionary extras.
Bargain Hunting
Others may set more strict budgets for what they’re willing to buy, and will likely hunt for deals across different retailers rather than stick to preferred brands regardless of price, as they might have done in the past.
Applying for New Credit Cards
A few more may resort to more serious measures to meet their children’s needs. Lupo noted that of the parents who believe schools are asking too much from them, one-third are also anticipating applying for a new credit card to make these purchases.
A 5% Increase in Concerned Parents
WalletHub analyst Cassandra Happe noted that the number of parents who are now concerned about associated school costs rose by 5% compared to last year.
Forbes Advisor Study
Forbes Advisor has also released a new survey of expected shopping trends for the new school year. It shows how parents are also facing the societal pressure of feeling the need to provide the best for their children and more.
Social Pressures Weigh In
64% of Forbes Advisor participants reported that societal pressure and ‘groupthink’ have influenced their shopping decisions. Nearly half of those same people are trying to balance what their children want with what they can afford to purchase.
Others Don’t Care
A quarter of all parents told Forbes Advisor that they will be prioritizing the classroom supply lists and what their children really need over “trying to keep up with the Joneses.”
Looking to Discount Brands
At 43% of respondents, more than a third of those parents are also planning to buy back-to-school equipment from discount retailers like Dollar General and Dollar Tree.
Still Getting What Their Kids Need
While many parents are planning to stick to basics and essentials, NFR’s $38.8 billion estimate shows that most families still intend to fulfill all of their children’s school needs regardless of prohibitive costs.
“Still a Lot of Intent”
Mark Mathews, the executive director of research at NFR, told CNN that while families are “very, very price-conscious” this school season, “there still seems to be quite a lot of intent to go out and spend.”
Second-Highest on Record
Cautious spending may be at the forefront of parents’ minds, but if NFR’s estimate is correct, this year will still be the second-highest back-to-school spending period on record.
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