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KEY TAKEAWAYS
- Parents expect to spend less on their students this year than last, averaging $586 per grade-school student.
- Inflation is weighing on households, who have paid increased prices for necessities such as groceries and rent all year long.
- A majority of families will go shopping before July ends to take advantage of early discounts.
Families expect to cut back on back-to-school supplies amid inflation and high interest rates.
The 2024 Deloitte Back-to-School Survey showed families will spend $586 on average per grade school student, down $11 compared to last year.
Stubborn inflation and high interest rates are making consumers think twice about their spending, and back-to-school shopping is no exception. Prices for school supplies have risen 25% since 2020, according to Deloitte’s calculations. Clothes for boys have risen nearly 16%, while clothes for girls have risen slightly less, at 13%. Shoe prices have increased 12% in that same time.
Parents expect to cut back on other expenses and delay major household purchases to pay for back-to-school items, which is expected to cost parents a total of $31.3 billion nationwide.
How Families Are Cutting Back
Families are shopping earlier, with a majority of back-to-school spending expected to occur by the end of July, according to Deloitte’s survey. For example, nearly half of parents were counting on this week’s Amazon Prime Day to score deals on back-to-school essentials.
As of early July, more than half of parents had begun to buy back-to-school products, according to the National Retail Federation (NRF). Parents are trying to take advantage of early discounts in order to make their money go further, the NRF found.
“Families are searching for deals and prioritizing value and convenience to save wherever possible,” said Brain McCarthy, principal of Retail Strategy for Deloitte.