Peach Tree Times

As back-to-school season commences, a new report is showing that one-third of Americans must reallocate parts of their budget to afford back-to-school supplies. As inflation continues to worsen, families continue to struggle to meet their expense obligations.

“Families consider back-to-school and college items as an essential category, and they are taking whatever steps they can, including cutting back on discretionary spending, shopping sales and buying store- or off-brand items, in order to purchase what they need for the upcoming school year,” Matthew Shay, National Retail Federation (NRF) president and CEO, said in a recent press release. “The back-to-school season is among the most significant shopping events for consumers and retailers alike, second only to the winter holiday season.”

Thirty-eight percent of consumers are limiting spending on certain items in order to cover the cost of back-to-school items, a July survey conducted by the NRF and Prosper Insights & Analytics showed.

This year's back-to-school spending is expected to surpass 2019's numbers by $11 billion and match 2021's $37 billion record, the NRF estimates said. The average school-items budget for families with K-12 children is $864—$15 more than last year's report and $168 more than in 2019.

A record $71 billion was spent on back-to-college essentials last year, the highest amount ever recorded by the NRF. It is estimated that nearly $74 billion will be spent in this category for the coming school year.

Back-to-school shopping prices have been impacted by inflation in all categories. A majority (68%) of respondents to the NRF's survey reported paying more for clothing, accessories and school supplies in recent months.

The survey was the most comprehensive annual back-to-class study performed to date, with feedback from 7,830 consumers. It was conducted June 30-July 7 and has a margin of error of +/-1.1 percentage points.

A total of 14 states will not charge sales taxes on clothing, school supplies and even technology items this summer as part of their seasonal "tax holidays," a recent Today report said. The state of Georgia has not given its residents a sales tax holiday.

Shoppers at Walmart, a hotspot for affordable school shopping, reported in July that rising gas and food prices have prompted them to buy fewer discretionary items, including clothing; a recent AP News report said. Consequently, the retailer has lowered its profit outlook for the remainder of the year.