Back-to-School Budgeting

It’s that time of year, again–back to school season. Depending on your perspective, it’s either not coming fast enough (I don’t know how much longer I can hear “can I have a snack” every 7 minutes of every single day) or you’re burying your feet in the sand and blissfully–if not intentionally–unaware that Back-to-School shopping has indeed already begun. Back-to-school shopping is a major, annual shopping holiday for retailers. Retailers prepare to market and sell to parents, students, and teachers between the months of July and September, every single year. The truth for American families though is that most of them (56%) find Back-to-School shopping “financially stressful”, according to a NerdWallet survey. Let’s explore strategies to alleviate the financial strain of back-to-school shopping and proactively prepare for this recurring annual expense.

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Shop Your Stash

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Start by taking stock of supplies you already have on hand. Lots of school supplies have a lifespan of longer than one year; think of scissors, headphones, and folders. Even consider the composition books that were only partially used last year; check with the school or teacher, but chances are your child will only need the second half of that composition book this year anyway. Delaying the replacement of these items is not only good for your initial school supply investment, it ensures last year’s investment isn’t wasted, teaches kids the value of conserving resources, and is better for our planet; reduce, reuse, recycle, for the win!

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Thrifty Supplies

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Talking about reduce and reuse–shopping at thrift stores, consignment shops, or resale sites is a frugal option for sourcing the supplies and clothing you need to replenish or replace. Shopping at thrift stores and consignment shops are a great way to find high-quality, pre-loved items at a fraction of the original cost and directly reduces our environmental impact by decreasing manufacturing demand and keeping useful items out of landfills. Thrift stores are also often locally owned which puts your dollars right back into your local economy. 

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Don’t forget about your local Buy Nothing groups or community curb alerts.

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Lean in to your Community

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Data suggests that nearly half of Americans would struggle to come up with the cash for a $1,000 emergency and around 60% of households live paycheck to paycheck. That means that your neighbors are more likely to understand your financial position even if they appear like they have it all financially figured out. Rather than stressing over the school supply shopping silently, lean into your community. Facilitate group buys for items that may be cheaper in bulk, like pens and paper. Then, host a potluck supply swap where kids can swap clothes and adults can separate bulk purchases. Not only is this a frugal way to procure school supplies, it will foster a true sense of community and fun!

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Additionally, search for local backpack or school supply drives. These are often hosted by schools, public libraries or community centers, and religious organizations. Leaning into your community isn’t advice meant only for those who need support, but also if you’re in a position to offer support. Reach out to neighbors, schools, and local drives to see what is most needed and how you can support teachers and those in need. 

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Shop Savvy

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Many retailers have planned to market to back-to-school shoppers from June through September. That means they will have sales and specials happening throughout the season that you can take advantage of. Spread out your shopping across these months to lessen the overall burden in any one month. However, also take advantage of any state "sales tax holidays," which could save you up to 7% depending on your location. Compare prices for in-store vs online purchases and choose where you shop for different items intentionally. You probably won’t find the best deals on everything at one big box store–shop around. Consider asking teachers if there are classroom items on the supply list that can be delayed and purchased later in the year, like tissues and paper towels, as replenishment. 

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Don’t Forget a Plan, o‍r Your Kids

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For families with kids in K–12—and often those sending students off to college—back-to-school shopping is a recurring, predictable event. One way to prepare is with a back-to-school sinking fund: set aside 1/12th of your estimated annual cost each month for a year. Over the course of a year, that builds up enough to cover the full expense without disrupting your budget in any one month.

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But what if you didn’t start a year ago? Don’t worry—there are still steps you can take today to reduce the financial strain.

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First, before heading to the store or adding to your online cart, determine how much you can truly afford to spend. According to the same NerdWallet survey, 13% of respondents said they expect to go into debt for school supplies, 26% said they plan to use buy now, pay later (BNPL) services, and 46% of respondents said that they would “go into debt to pay for back-to-school items that would help their child fit in at school.” If you’re considering using credit or BNPL options, calculate how much you can realistically repay each month—then make sure your total spending stays within that limit. A clear repayment plan can help you avoid lingering debt long after the school year begins.

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Next, bring in your kids. Tell your kids the spending limit you have determined and help them understand that this is the limit because your family also has other financial priorities that are still important. Then, create a plan with your kids to help them make intentional decisions to stay within their budget while they are in the store. I recommend two strategies: the Step-down Principle and a Balanced Shopping Chart. The Step-down Principle involves swapping a high-priced item for a similar, cheaper alternative. For the Balanced Shopping Chart, create a list of school supplies in the first column. Then, add three columns: Premium, Mid-Range, and Value. Define each price tier (e.g., Premium over $25, Value under $5 or thrifted). If you opt for Premium shoes, you might need to choose Value options for other supplies to balance your spending. This is a great tool to help kids (and adults!) visually see the concept of opportunity cost and spending priorities. Including your kids in this process gives them experience practicing real-life money skills and helps them foster a sense of ownership that can extend the life of their new belongings and supplies. 

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Lastly, before you start shopping, offer your kids an incentive that if they stay under their budget whatever they save (or a portion of it) can be spent on a special treat like an ice cream after the shopping trip or video game credits. You might be surprised at how thrifty your kids can be when there’s a fun reward on the line.

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Protect Your Budget and Your Sanity

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Back-to-school shoppers plan to spend an average of $741 on essentials like clothing, electronics, and books to get their kids classroom-ready, according to NerdWallet. It’s no surprise that these rising costs are putting pressure on families and their budgets. But with a little creativity, community support, and thoughtful planning, you can navigate the season without draining your wallet—or your energy. You’ve got this!

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Resources:

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https://www.nerdwallet.com/article/shopping/2025-back-to-school-shopping-report