Economic insights and consumer behavior revealed through back-to-school spending habits
The back-to-school shopping season in 2025 is seeing a shift in consumer behaviour, as people adapt to the ongoing impact of inflation. According to Bankrate's 2025 Back-to-School Survey, 30% of shoppers say inflation is changing the way they shop, a decrease from previous years.
Spending Habits and Strategies
The average spending per shopper for kindergarten to 12th grade is around $858, slightly lower than last year's record $875. About 49% of shoppers are using money-saving strategies, with 20% opting for cheaper brands and 20% seeking deals or coupons. Only 20% say back-to-school costs are straining their budgets, down from 31% in 2022.
Inflation's Impact on School Supplies and Clothing
Inflation has caused prices to rise, but the increase is less significant this year. For instance, stationery and gift wrap have increased by 4.7%, boys’ apparel by 2.1%, and educational books and supplies by 9.4%. However, prices for boys’ apparel and computers have decreased slightly year-over-year.
Money-Saving Tips
Consumers can save money during back-to-school shopping by stacking discounts, repurposing used goods, and spreading out expenses. Strategies include using rewards credit cards, combining store promotions, card-linked offers, and online shopping portals. Shoppers can also make use of tax-free holidays and sales tax-free weekends or holidays in the weeks leading up to the first day of school.
Consumer Sentiment and Financial Stress
Consumer sentiment has improved slightly over the past few months, according to the University of Michigan's Index of Consumer Sentiment. Wage growth outpacing inflation has helped consumers manage expenses better this season. Despite this, American shoppers generally, including parents, often incur debt around major spending periods, which may influence cautious back-to-school spending habits.
Teaching Financial Lessons
The back-to-school shopping season provides an opportunity for parents to teach their children valuable financial lessons. Involving children in the shopping process can offer age-appropriate lessons about budgeting, comparison shopping, and making trade-offs.
In conclusion, inflation continues to influence back-to-school shopping in 2025 but to a lesser degree than during the peak inflation years of 2022-2023. Consumers are adapting by using money-saving tactics and being more selective, leading to slightly decreased average spending and less budget strain. Despite these improvements, nearly one-third of shoppers still plan to make changes in how they shop due to inflation.
The ongoing impact of inflation is causing shoppers to reconsider their spending strategies in the retail industry, with some opting for cheaper brands and coupons as a means to save money during the back-to-school shopping season. In light of less significant price increases for stationery, boys’ apparel, and educational books, finance experts suggest money-saving tips such as stacking discounts, repurposing used goods, and spreading out expenses to maximize savings. Despite improved consumer sentiment and wage growth outpacing inflation, there remains financial stress among shoppers, leading to cautious spending habits in the finance sector, including back-to-school shopping. In an effort to teach valuable financial lessons, parents are involving children in the shopping process to instill budgeting, comparison shopping, and trade-off skills.
