Parents Looking For Value With Back-To-School Spending, Survey Says

Yahoo

a day ago

Back-to-school spending for K-12 students is projected to hold steady at $30.9 billion, or about $570 per student, according to Deloitte's 2025 Back-to-School Survey.
Despite economic concerns, parents are navigating higher prices and budget constraints with value-driven strategies, according to a survey of 1,203 parents with children in grades K-12. Eighty-three percent of parents surveyed reported that their household finances are the same or worse than they were last year, and 54% anticipate a weaker economy in the next six months, marking a five-year low in confidence.
'Parents are laser-focused on preparing their children for the school year, but we expect back-to-school spending to remain flat amid economic headwinds and financial concerns across income groups,' said Natalie Martini, vice chair and U.S. Retail & Consumer Products sector leader at Deloitte.
Lower-income families (earning $50,000 or less annually) plan to spend 10% more due to rising prices, with 68% citing higher costs as the reason. Conversely, middle-income families ($50,000-$99,000) and higher-income families ($100,000 or more) plan to reduce their spending by 7% and 9%, respectively. Notably, 51% of middle-income parents and 60% of higher-income parents express financial and economic concerns.
To manage their budgets, 52% of parents plan to cut back on dining out and entertainment, while 48% intend to buy in bulk. Additionally, 39% will purchase smaller packs and restock as needed.
Spending on clothing and accessories is expected to rise by 6% to $13.4 billion, while spending on technology and school supplies is projected to decline by 8% and 3%, respectively.
Despite budget constraints, 57% of parents said they might splurge on a first-day-of-school outfit, and 62% noted their children often influence higher spending.
Value-seeking behaviors dominate, with 83% of parents choosing mass merchants and 68% opting for online retailers.
'This year, parents are strategically approaching back-to-school shopping by spreading out purchases, leveraging promotions, and shopping across multiple discount retailers to help them maximize their budgets,' said Brian McCarthy, principal of Retail Strategy at Deloitte Consulting LLP.
Seventy-one percent are willing to wait longer for delivery to avoid shipping costs, and 75% would switch brands if prices are too high.
Younger parents are increasingly relying on social media, with 75% of Gen Z and 46% of Millennial parents using platforms to find deals, spending 1.8 times more than their older counterparts. Gen Z parents are also more likely to trust influencer content (59%) and use generative AI for shopping (67%), compared to 34% of Millennials and 29% of Gen X.
Extracurricular activities remain a priority for 90% of parents, although spending has decreased by $50 from 2024 to $532 per child, reflecting cost-cutting measures. Parents cited mental health (87%) and skill development (83%) as the key benefits of extracurricular activities.
Additionally, 42% of parents reported that their children bring lunch from home most days, budgeting an average of $164 per month.