As the new school year looms, parents are grappling with a financial reality that's more daunting than ever: This could be the most expensive back-to-school season on record.
According to the National Retail Federation, overall back-to-school spending for 2023 is expected to climb to an unprecedented $41.5 billion. This surge is up from $36.9 billion in 2022 and surpasses the previous record of $37.1 billion in 2021. On average, families with children in elementary through high school are preparing to shell out $890.07 for supplies, which is about $25 more than last year's record-setting numbers.
A separate survey by CNET Money reveals the impact of this economic squeeze. About 43% of parents are considering various financing options just to cover school supplies. With American credit card debt exceeding $1 trillion, the economic stress on families is palpable. Despite these challenges, experts suggest there are strategic ways to mitigate the financial impact.
Prioritize Essential Supplies
Julie Ramhold, a consumer analyst at DealNews.com, suggests a focused approach. "Begin by shopping only for the absolute necessities," she advises. Items like notebooks, binders, paper, and writing instruments should be your first purchases. You can defer buying a new backpack or lunchbox, as retailers often slash prices around Labor Day to clear out excess stock.
"If you don't need winter gear or electronics immediately, it might be best to wait until October or November, when these items are likely to be discounted," Ramhold adds.
Price-tracking browser extensions such as CamelCamelCamel or Keepa can be incredibly helpful. They track price fluctuations and alert you when costs drop on items you're watching. Several states offer tax-free shopping days, providing a reprieve from sales taxes on school supplies.
"This can be a game-changer for families looking to save," says a RetailMeNot expert.
For example, New Jersey is offering a tax holiday where the standard 6.625% sales tax will be waived on specific items from August 26 to September 4. On a $3,000 computer, this could equate to a savings of up to $200.
Andrea Woroch, a consumer finance expert, advises parents to look at new credit cards that offer sign-up bonuses. "The Capital One Quicksilver Cash Rewards card gives you $200 back when you spend $500 in the first three months," she notes. Woroch also recommends a review of existing credit card reward programs to see which card will provide the most cash back or points on school supplies.
Power of Online Coupons and Cash-Back
Utilizing coupon and cash-back sites can further alleviate your financial burden. Platforms like CouponCabin.com offer cash back on purchases from major brands like Target, Walmart, and Macy's. RetailMeNot's experts recommend a multi-layered approach: combine credit card rewards, store coupons, and cash-back offers for maximum benefit.
Woroch encourages consumers to think outside the box. "Don't underestimate the power of resale sites," she says. eBay offers backpacks at half price, while Poshmark and ThredUp give discounts of up to 75% on clothing. Sporting goods can be found for up to 80% off at Sideline Swap.
Your home might already have many of the supplies you need. "Rip out unused pages from last year's notebooks and combine stray crayons and markers into new sets," suggests Woroch. A wash and refurbishment of old backpacks can also go a long way.
Engage your local community in back-to-school preparations. Consider swapping items with neighbors or participating in community exchange programs. Some areas have Buy Nothing groups or other local initiatives aimed at resource sharing among community members.
By adopting a savvy, strategic approach to shopping, parents can make this challenging back-to-school season more manageable without derailing their budgets.
Related Article: Back-To-School Guide: Preparing Kids for a Successful Academic Year
