Back to School Savings: Tips to Save Money
- As summer winds down, families are already tackling back-to-school shopping, and a notable number are doing so earlier than usual.
- The concern is well-founded.Many essential school items - from clothing and shoes to electronics - are imported goods, and U.S.
- Despite economic headwinds, families are preparing to spend.
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the Pressure is On: Early Shopping and Economic concerns
As summer winds down, families are already tackling back-to-school shopping, and a notable number are doing so earlier than usual. More than 74% of U.S. households earning less than $50,000 annually are proactively purchasing school supplies to mitigate the potential impact of increasing costs, according to the National Retail Federation (NRF). This preemptive approach reflects growing anxieties about affordability in the current economic climate.
The concern is well-founded.Many essential school items – from clothing and shoes to electronics – are imported goods, and U.S. tariffs have risen substantially. The U.S. Chamber of Commerce estimates a 18% increase in tariff rates this year, more than tripling the 5% rate seen in 2024. This directly translates to higher prices for consumers.
Projected Spending and Inflation’s Impact
Despite economic headwinds, families are preparing to spend. The NRF projects an average of $858 per household with children in kindergarten through 12th grade on clothing,shoes,school supplies,and electronics. While slightly down from $875 in 2024, this figure remains significantly higher than the $697 spent in 2019, demonstrating the cumulative effect of inflation on back-to-school budgets. Data from the NRF shows this upward trend.
Recent data from the St. louis Federal Reserve Banks confirms that prices for school supplies and books are elevated.A recent analysis by The Century Foundation revealed a more than 7% increase in typical school supply prices this year, with items like index cards and binders experiencing even steeper rises.