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Survey: Back-to-school shopping for 2024 likely to lead to debt

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With inflation having eased somewhat in recent months, nearly a third of U.S. consumers expect to incur debt during the back-to-school shopping season.

That's according to a report released Monday by consumer finance website BankRate. 24% of parents plan to rack up credit card debt for the back-to-school shopping season, while another 13% of parents intend to use buy now, pay later services such as Affirm, Afterpay and Klarna.

By comparison, in 2022, when inflation hit a 40-year high, 29% of parents said they planned to go into debt to buy school supplies for their children.

“With inflation down, Americans are willing to pay for things like back-to-school shopping,” Bankrate analyst Ted Rossman said in a statement. “Shoppers aren't clutching their wallets nearly as tightly this year.”

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As the Labor Department announced last week, consumer prices rose a modest 2.9 percent in the 12 months through July.

The annual inflation rate had not fallen below 3% since March 2021. After a brief increase in the spring, inflation fell slightly this summer.

A slim majority of parents, 52 percent of respondents, expect to pay more for school supplies this year than last year, according to financial website WalletHub. Consumers are feeling continued inflationary pressures this year, although not as much as last year.

Bankrate found in its report that 32% of parents said inflation has changed their back-to-school shopping habits, while 28% of parents said they are looking for deals and coupons more intensively than before. 22% of parents said they have to set aside a special budget for back-to-school shopping, while 21% said they are buying cheaper brands.

The National Retail Federation estimates that total back-to-school spending will reach $38.8 billion this year, compared to $41.5 billion last year.

New Jersey state officials eliminated the sales tax exemption on back-to-school supplies this year, a move the state estimates will save $35 million.

According to a USA Today analysis, a total of 17 states are offering a similar sales tax exemption for back-to-school products this year.

How to save with special offers on back-to-school supplies

Retailers from Walmart to Target and Kohl's are offering back-to-school deals on kids' clothing.

Target is offering special deals on 20 classroom supplies for $20 and backpacks for $5.

Amazon offers school supplies such as glue, staplers and erasers starting at just 25 cents.

Walmart offers materials like markers for less than a dollar. Staples offers school supplies like journals, crayons, folders, and colored pencils for less than a dollar.

Dollar Tree and Dollar General are offering numerous back-to-school deals on classroom supplies.

Students and parents can now get discounts on PC laptops, Chromebooks with Google operating systems and the Apple MacBook.

Bankrate's Rossman said you can also find all kinds of clothing and school supplies in your local buy/sell Facebook groups.

Stock up

According to financial services website NerdWallet, some school supplies from last year may still be useful.

“Look through your closets and last year's backpack to see if there's anything left from last year—and while you're at it, check to see if the backpack can be used for another year,” NerdWallet explains in a June post.

According to the National Retail Federation, 24% of parents said they were able to get by with last year's purchases and school supplies.

Distribute your purchases

To save money, you don't necessarily have to buy all your school supplies in one day or at one specific location.

Ask your child's teacher what can be purchased later in the year, said Bankrate's Rossman.

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