Inflation hits back-to-school shoppers

The number of Americans concerned about the impact of inflation on school supply purchases has declined in recent years, but about a third of shoppers still worry about how the start of the school year could affect their finances.

Thirty-two percent of Americans say the cost of back-to-school products has already influenced their purchasing decisions or will do so at some point, according to a new report from the consumer financial services company Bank interestThis represents a decline of almost 10% from 2022, when inflation peaked.

49 percent of Americans plan to do some form of back-to-school shopping. As expected, younger generations are more likely to prepare for the new school year, either for themselves or their families. 67 percent of Generation Z and 64 percent of Millennials plan to purchase back-to-school products.

“With inflation down, Americans are finding it easier to pay for things like back-to-school shopping,” Ted Rossman, senior industry analyst at Bankrate, said in a statement.

“Shoppers aren't clutching their wallets nearly as tightly this year. However, it's important not to get complacent. Credit card interest rates and balances remain near record highs and all the price increases of the past few years have taken their cumulative toll.”

Despite falling inflation, 31% of Americans say they plan to take on debt to finance school-year purchases, compared to 29% in 2022. This debt comes in the form of both transferring credit card balances and using buy now, pay later services like Klarna.

Aside from getting into debt, many people who buy back-to-school supplies are resorting to other strategies to cope with inflation. About one in five Americans plan to buy cheaper brands or fewer new items, while about 30% say they will take more advantage of coupons and sales this year. The number of people using the latter strategy has declined since 2022, when nearly half of back-to-school shoppers planned to resort to couponing.

Experts continue to advise shoppers to be cautious about spending money and look for alternative ways to purchase school supplies as the economy remains on shaky ground.

“Use technology to your advantage this back-to-school shopping season,” Rossman said in a statement. “For example, my wife is a member of a local Buy Nothing group on Facebook and we get lots of free clothes for our school-age daughters. If you need to buy something, try to get discounts.