Back-to-School Spending to Hit Record High

Back-to-school season is seeing record-high spending despite high gas prices and economic concerns. According to the National Retail Federation (NRF), back-to-school spending is estimated to reach $103.5 billion for college shopping and $43.3 billion for K-12 shopping for a total of $146.8 billion. 

The large majority of this spending is expected to go towards electronics, which are taking up a larger part of the backpack of goods that shoppers have on their lists. As schools increasingly rely on technology, electronic devices are becoming more important for students to have for back to school. 

Consumers are aware that prices are increasing. Some 64% of consumers expect to see higher prices when shopping this year. Despite higher prices and low consumer sentiment, spending is still growing. Per-person spending is expected to reach $863 for K-12 shopping, an increase from $858 in 2025. 

Affordability is a big concern for families. With inflation taking a bite out of paychecks, gas prices increasing due to overseas conflicts, and housing prices reaching record highs, families are seeking out the best deals for the back-to-school season. While some financial decisions are being put on hold due to economic concerns, back-to-school spending is resilient. Instead of cutting back on spending, the NRF survey finds that consumers are taking advantage of seasonal promotions early in the year and drawing out the back-to-school season. For example, 54% of shoppers report they took advantage of events such as Prime Day, Walmart Deals, and Target Circle Day for back-to-school supplies. 

In addition to deal days throughout the year, more people are stopping at multiple stores to complete their back-to-school lists. Half of shoppers plan to buy online, while 47% plan to stop at department stores, 44% at discount stores, and 39% at clothing stores. Spreading out purchases across many stores helps parents engage in comparative shopping, or finding the best price for items on their lists. 

While spending is increasing, the personal saving rate is decreasing. The long-run average for the personal savings rate has been 8.37%; however, the current savings rate has been trending down, reaching just 3% in May. While families are willing to spend more during major spending events, this increased spending comes at the cost of personal savings. 

Bottom Line

Back-to-school shopping highlights the importance of affordability for families. Shoppers should not have to sacrifice important savings in order to complete a back-to-school list each year for their children. 

Lowering inflation, addressing affordability, and providing tax relief with sales tax holidays during this time are vital ways that policymakers can support parents.