Isabella Canales, a 29-year-old living in suburban Dallas, has been deeply stressed about money this year. Despite having a household income of nearly $9,000 per month pre-tax, their budget is almost entirely consumed by expensive living expenses and paying off around $57,000 of medical and consumer debt.
The last thing she needed was another major expense. Unfortunately, the high costs of the back-to-school season have pushed her further into debt.
In July, Canales spent close to $1,000 on supplies and clothing for her two oldest daughters, who are entering second and third grade at a local charter school. This is $200 more than she spent last year. Additionally, she received a long list of school supplies from her 2-year-old’s daycare, including items like index cards, cardstock paper, Lysol wipes, paint, watercolors, pencil bags, highlighters, paintbrushes, and a painting apron.
“I don’t understand how people are managing right now,” Canales remarks. “The amount you have to pay for these uniforms and supplies is insane.”
With the start of the 2024-2025 school year approaching, many households are finding it difficult to afford books, clothing, and school supplies, leading some to take on debt.
According to Bankrate’s latest Back to School Survey, nearly one-third (31 percent) of U.S. adults shopping for back-to-school items this year are going into debt to cover the costs. This includes 24 percent using or planning to use credit cards and paying off the balance over time, and 13 percent using or planning to use buy now, pay later services. These percentages have remained relatively stable since 2023 when 29 percent of back-to-school shoppers incurred debt.
As parents and students navigate how to finance their supplies this fall, here’s how people are approaching back-to-school shopping this season.
As inflation has come down, Americans have become more comfortable paying for things like back-to-school shopping.
— Ted Rossman, Bankrate Senior Credit Card Analyst
Bankrate’s insights on back-to-school shopping
- Back-to-school debt is common. 31% of back-to-school shoppers are going into debt from their spending, up from 29% in 2023. That includes 24% who are using credit cards and carrying balances over time and 13% who are using buy now, pay later services.
- Parents are trying to save money this year. 46% of back-to-school shoppers will implement money-saving strategies this year, including 28% who have sought/will seek out more deals or coupons than in the past, 22% who had/will have money specifically set aside or budgeted, 21% who bought/plan to buy cheaper brands than usual and 19% who bought/plan to by fewer school supplies than in previous years due to the cost.
- Inflation has a smaller impact since 2023. 32% of back-to-school shoppers say inflation changed/will change the way they shop this year, down from 41% in 2023.
Nearly 1 in 4 back-to-school shoppers will take on credit card debt
Nearly half (49 percent) of U.S. adults will go back-to-school shopping this year, with the majority planning to use debit cards and/or cash.
Nearly 2 in 3 (65 percent) back-to-school shoppers used/plan to use debit cards, making it the most popular payment option, followed by cash (57 percent). Less popularly, 35 percent of back-to-school shoppers used/plan to use a credit card and pay in full to avoid interest.
Thirty-one percent of back-to-school shoppers have taken on/will take on debt. That includes 24 percent who used/will use credit cards and carry balances over time and 13 percent who used/will use buy now, pay later services:
Source: Bankrate survey, July 15-17, 2024
Note: Percentages are of back-to-school shoppers.
From crayons for elementary schoolers to expensive technology for college kids, families may still be getting sticker shock from the price of school supplies, even if they’re paying less this year. For example, last year, Bankrate Editorial Director Amy Sims was shocked by the price of some supplies, like notebooks.
This year, back-to-school supplies were a bit more budget-friendly. Sims mentioned that she spent around $150 on school supplies for her 7th-grade daughter, which was lower compared to previous years. Despite the cost, her daughter didn’t require any expensive materials like a computer. Sims advised shoppers to check their credit card rewards to maximize benefits, as she did by using certain cards that offer extra perks at Walmart.
Inflation seems to have less of an impact on back-to-school shoppers this year, with only 32 percent stating that it has changed their shopping habits, down from 41 percent in 2023. While some shoppers are still trying to stretch their budgets, 46 percent are implementing money-saving strategies, such as looking for deals, buying cheaper brands, or purchasing fewer items due to costs.
Although fewer people are feeling financial pressure this year, it’s important to remain cautious. High credit card rates are affecting some shoppers, like Canales, who had to finance her children’s supplies using credit cards and buy-now-pay-later platforms. This back-to-school season serves as a reminder that prices for everyday goods are still high for many.
To save money on back-to-school shopping, consider checking prices in advance, making a budget, knowing exactly what you need, and taking advantage of tax holidays. Starting early and being informed can help alleviate the financial strain of this annual expense. Connecticut residents can take advantage of a tax holiday between August 18 and 24, where they can save on clothing and footwear purchases up to $100. It’s important to note that tax holidays can start as early as July, so it’s a good idea to start your back-to-school shopping early. According to Sims, it’s best to start as soon as your child’s school supply list is available to avoid limited supplies and having to buy more expensive items later on.
In terms of methodology, the data provided is from YouGov Plc, with a sample size of 2,358 adults, including 1,163 who have shopped or plan to shop for back-to-school items this year. The survey was conducted between July 15 and 17, 2024, and the figures have been weighted to be representative of all US adults. The survey was carried out online and followed a rigorous quality standard to ensure nationally representative results.