Half of Parents Expect to Go Into Debt for Back-to-School—Here's How to Avoid It

Yahoo

25-07-2025

Multiple surveys underscore that BTS shopping is sending parents into debt.
Fact checked by Sarah Scott
Every year in late July, I start to break out in a cold sweat whenever I glance at my calendar or walk into a store. That's because it's back-to-school time, a fact I can no longer ignore, as much as I may want to keep reveling in less-scheduled days.
The inescapable truth is that there are backpacks, pencils, (trendy and overpriced) water bottles, and shoes to buy—and so much more. Indeed, other than the holidays (and possibly Maycember), early fall is perhaps the most expensive and stressful time of year for parents with kids who are heading back to school.
Survey Says—BTS is Pricier Than Ever
There is no shortage of data validating the anxiety parents feel around back-to-school shopping.
According to CNBC, although inflation is not as much of a factor these days, tariffs may be impacting how much parents pay for items their kids need to kick off the school year successfully. For instance, between 2019 and 2025, the cost of some school supplies has risen 20%, with backpacks up 30%.
Overall, spending for the BTS season is predicted to reach $30.9 billion, with parents shelling out an average of $570 per kid according to Deloitte. To be fair, that's less than what parents spent last year: $586 per kid. Still, if you have multiple children—or even if you don't—that's a ton of dough for folders and lunch totes.
Meanwhile, Intuit Credit Karma surveyed parents and found that over a third can't afford back-to-school shopping. And, 44% think they'll take on debt this BTS season, with more than half admitting they'll likely sacrifice on necessities like groceries so their kiddos are prepared for the first day of school.
Other findings from the survey include that:
69% of parents plan to shop at discount stores for supplies.
41% are relying on hand-me-downs and/or borrowed items.
51% say their kids are asking for non-essential items they've seen trending on social media—and parents are saying 'yes' so they don't let their kids down.
54% report that the financial burden of back-to-school expenses is a major source of anxiety.
67% of parents say they feel their child's school has passed down more costs onto parents than in previous years.
What Parents Can Do To Spend and Stress Less
According to experts, even though 2025 will feature an expensive BTS shopping season, there are ways to keep from going into debt over supplies, shoes, devices, and duds for your little darlings.
Taking a proactive approach to your finances by prioritizing what you can control is key, according to Tiana Patillo, CFP, Financial Advisor Manager at Vanguard.
'You can safeguard your finances and feel confident about back-to-school shopping this year, even amid the uncertainty of rising prices,' she says.
Step one is to create a budget. Next, Courtney Alev, consumer financial advocate at Credit Karma, recommends making a list of what your child absolutely needs versus 'nice-to-haves' to help outline your priorities.
'Then, check your closets and drawers to see what you already own and don't need to replace. This way, you'll have a more focused and intentional list before you even start shopping,' Alev advises.
Other tips for saving money this season include:
Agreeing to pay for needs only. Parents can encourage older kids to earn money for wants, and allow younger children to pick one item from a list of non-essentials. 'Back-to-school season is the perfect opportunity to have a thoughtful, age-appropriate conversation with your kids about money and teach them the importance of budgeting and prioritizing needs over wants,' Alev says. 'Being honest with your child about what you're able or unable to afford can be a great way to not only set expectations, but also show kids how to set financial boundaries.'
Shopping early. Timing is everything, according to Chris Riedy, CRO at cash-back app Ibotta. 'Parents are starting their back-to-school shopping earlier this year, not just to beat the rush, but to hunt down the best deals before price hikes,' he says.
Waiting to purchase clothes that your kids won't wear yet. With many schools around the country starting in early August, kids won't need sweaters, jackets, or boots for months.
Checking out secondhand options. Ken Murphy, Chief Innovation Officer at OfferUp, a local commerce and connection app, advises, 'Parents can find high-quality clothes, backpacks, sporting gear, and even tech like tablets and laptops from people right in their community, often at a fraction of retail prices.'
Picking store brands. Patillo says these items are often lower priced than brand names and still offer good quality when it comes to school essentials.
Doing your research. Especially when buying big-ticket items like a laptop or tablet, Patillo recommends, 'Look out for promotions as retailers compete for your business during summer sales. Analyze price differences between retailers and personalized cash back or coupon offerings.'
Buying in bulk. Alev recommends pooling resources with friends and neighbors with kids in the same grade to save money on BTS staples.
If you do end up taking on debt, Alev urges parents to build debt payback into their budget.
'It's important to make a plan to pay it off in a way that's doable for you. Any high-interest credit card debt should be your first priority to pay down,' she advises.
Ultimately, it's worth saying again that the BTS shopping season is a great opportunity to set an example of what healthy finances look like. As Patillo emphasizes, 'Kids mirror the behaviors of those around them, so demonstrating healthy budgeting habits and creating interactive, open conversations around money will have a lasting impression.'
Read the original article on Parents
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