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With inflation easing somewhat over recent months, nearly a third of U.S consumers expect to put themselves into debt during the back-to-school shopping season.
That’s according to a report released Monday by BankRate, a consumer finance website. Broken down, 24% of parents plan to rack up credit card debt for the back-to-school shopping season, while another 13% of parents plan to use buy now, pay later services such as Affirm, Afterpay and Klarna.
For comparison, in 2022 when inflation was at a 40-year-high, 29% of parents said they planned to go into debt getting school supplies for their kids.
“As inflation has come down, Americans have become more comfortable paying 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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Consumer prices rose a modest 2.9% in the 12 months through July, the Labor Department reported last week.
The annual inflation rate hadn’t dipped below 3% since March 2021. Inflation has gently declined this summer, following a brief spike in spring.
A slight majority of parents, or 52% of those surveyed, expect to pay more for back-to-school shopping this year than last year, according to personal finance website WalletHub. Consumers are feeling the persistent pressure of inflation this year, though not as badly as last year.
Bankrate, in its report, found that 32% of parents said inflation changed how they do back-to-school shopping, while 28% of parents said they searched harder than in the past for deals and coupons. Twenty-two percent of parents said they had to budget specifically for back-to-school shopping, while 21% said they bought cheaper brands.
The National Retail Federation estimates that total back-to-school spending this year will hit $38.8 billion, compared to last year’s $41.5 billion.
New Jersey officials ended the sales tax holiday on back-to-school shopping this year, a move they estimated would save the state $35 million.
A total of 17 states are offering a similar sales tax holiday this year on back-to-school products, according to a USA Today analysis.
Ways to save on back-to-school supplies with sales
Retailers from Walmart to Target and Kohl’s have back-to-school deals on children’s clothing.
Target is offering deals on 20 classroom essentials, priced $20, as well as $5 backpacks.
Amazon is offering such school supplies as glue, binders and erasers starting at 25 cents.
Walmart is offering supplies such as markers for less than a dollar. Staples is offering school supplies including journals, crayons, folders and colored pencils for less than a dollar.
Dollar Tree and Dollar General are offering myriad back-to-school deals on supplies for the classroom.
Students and parents can meanwhile find discounts on PC laptops, Google-powered Chromebooks and Apple’s MacBook.
Rossman of Bankrate said you can also find all manner of clothing and back-to-school supplies on your local buy/sell Facebook groups.
Stock up on leftovers
According to financial services website NerdWallet, some school supplies from last year could still be useful.
“Check closets and last year’s backpack for leftovers from last year — and while you’re at it, see if that backpack is good for another year of use,” NerdWallet states in a June post.
According to the National Retail Federation, 24% of parents said they were able to make due with last year’s purchases and school supplies.
Spread out your purchases
To save money, you don’t necessarily need to buy all your school supplies in one day or at a particular location.
Ask your child’s teacher what can be purchased later in the year, said Rossman of Bankrate.