Parents Underestimate 2024 Back-to-School Spending by $370+

Families across the country are gearing up for the annual back-to-school shopping season. According to the National Retail Federation (NRF), Americans will spend $38.8 billion on back-to-school shopping in 2024. It’s one of the busiest shopping times of the year for retailers and consumers alike as parents and children prepare for the new school year with a keen eye on their budgets.

CardRates.com surveyed 1,000 American parents of school-age children (K-12) to understand how much they plan to spend on 2024 back-to-school shopping and how that spending will financially impact them.

Traditionally, mothers have taken the lead in back-to-school shopping, and this year is no different. However, although 54% of mothers are still primarily responsible for this task, fathers are still involved, with 12% doing this year’s shopping. More than 3 in 10 parents will share the shopping equally. 

How soon is too soon to begin shopping? About 3 in 10 have already started back-to-school shopping; 30% plan to begin at the end of July, 27% in the first two weeks of August, and 10% will go at the end of August or early September. 

Budgeting is a critical aspect of back-to-school shopping. Most families, 61%, have a budget for their purchases. The average amount parents have budgeted is $521, but their actual spending this year will be closer to $900, with parents underestimating their back-to-school spending by $373. The NRF predicts households will spend about $875 per household in 2024.

The majority of families (61%) plan to pay for back-to-school purchases through debit cards, 54% will use credit cards, and 39% will pay with cash. The top credit cards parents will use are Visa (48%) and Mastercard (21%).

One reason parents may be tightening their budgets this year is due to the rising costs of many back-to-school items. Nearly 2 in 5 believe it will be challenging to afford needed school items in 2024, and 1 in 6 parents will have debt from back-to-school purchases this year. More than a quarter have gone into debt years prior due to expensive back-to-school shopping.

One way parents may alleviate some of these costs is through community events, such as backpack drives. 1 in 6 will use a community event in 2024 to help with back-to-school supplies, and 24% have used a community event for previous school years. 

Most parents (42%) have noticed an increase in spending compared to recent years, and 83% are concerned about rising prices. Parents are also worried about the availability of items (42%) and the quality of products (35%).

Even with the stress and hassle, more than half (53%) of parents enjoy back-to-school shopping, as do their children (69%). 

What will parents be spending nearly $900 on this year? The top item is school supplies (96%), followed by clothing and accessories (90%), shoes (80%) and electronics (17%). Most parents (74%) will be doing their shopping online, followed by department stores (62%), clothing stores (44%), discount stores (35%), and drug stores (33%). 

Parents are primarily influenced to buy an item by its price (88%), its quality (75%), and through sales or discounts (65%). With the school year on the horizon, 44% plan their back-to-school shopping around retailer events and sales, such as Labor Day sales.

Nearly half (45%) also use rewards or loyalty programs, such as store-specific loyalty programs (79%), credit card reward programs (51%), online retail rewards programs (43%), or cash back apps (38%).

“Every parent who is sending their child to school should analyze not just how much they want to spend on supplies, but to be realistic about the costs. Inflation has definitely caused prices to rise this year,” said CardRates Finance Expert Erica Sandberg.

“Preparation is key. Shop early, scour sales, and be extremely discerning about what really is necessary,” Sandberg continued. “And of course, use the correct payment tools. Cash and debit cards are for smaller items but if you will be buying more expensive things, especially electronics, a credit card is more appropriate. It comes with embedded consumer protection, and can make returns and refunds far easier.”

The 2024 back-to-school shopping season shows a mix of familiar habits and new trends as families gear up for the new school year. While moms are still leading the charge, dads and shared responsibilities are becoming more common. Starting early, sticking to budgets, and smartly using various payment methods and loyalty programs are helping parents manage rising costs. 

In July 2024, we surveyed 1,002 American parents of children in grades K through 12 as of Fall 2024 for their feedback on back-to-school shopping. The average number of children per household was 2. The age range of respondents was 19 to 75, with an average age of 43. Respondents identified as 50% female and 50% male.

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