Sep 5, 2025
For many families, the end of summer should bring excitement for a fresh school year. Instead, it’s bringing a new round of financial stress.
Rising tariffs, higher costs of essentials and social pressure to keep up with trends have combined to make 2025's back-to-school season one of the most expensive in years. Parents are not just stretching budgets, they’re facing tough decisions about debt, self-image and saying no to their kids.
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A NerdWallet survey found that parents of K-12 and college students plan to spend an average of $741 this year on school-related expenses, nearly $200 more than in 2024 [1]. Another survey by Zip showed an average budget of $466, though many parents admitted they expect to overspend [2].
So what’s driving the jump? A mix of tariffs impacting common goods such as clothing and computers, lingering inflation and the societal expectation that kids need brand-name items to “fit in.”
Joe Heck, U.S. CEO of Zip, weighed in: “Back to school can be a stressful time for parents and students alike. It’s not just students feeling the pressure of returning to the classroom. Parents also face the challenge of balancing their desire to provide for their children and meeting societal expectations with today’s financial realities.”
How parents are paying for back-to-school
With costs climbing, the way parents pay for supplies matters as much as the price tags themselves. Credit cards are the top choice, with 63% of families planning to swipe for back-to-school purchases [1] . Debit cards come in second (60%), while nearly a quarter of parents will use buy now, pay later (BNPL) services.
These strategies may ease short-term strain but carry risks. It turns out that 71% of parents using BNPL admitted they couldn’t have finished shopping without it [2]. While convenient, these payment methods can blur the line between affordability and accumulating debt. And once balances roll over, interest or late fees can quickly turn school supplies into long-term financial burdens.
This means that budgeting based on existing cash, not future borrowing, is crucial. Sticking to a strict budget, even if it means saying no to trendy sneakers or extra accessories, can protect families from spiraling into credit card debt.
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Finding ways to save
The good news? Parents are resourceful. More than half plan to shop during sales (52%), a third will use coupons (34%) and some will reuse leftover supplies from last year [1]. Others are trimming spending by buying fewer clothes or nonessential extras.
Community-driven solutions are also becoming more common. In fact, 25% of families say they’ll turn to free options this year, like school supply drives or swaps. Many schools, churches and nonprofits run backpack giveaways or swap events, or accept donations from neighbors who want to help.
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These initiatives not only ease financial stress but also reinforce the idea that families don’t have to tackle rising costs alone.
Around 19% of parents expect older children to chip in with their own money toward school costs this year, which can build financial awareness.
Another way parents are saving is by setting early expectations with their kids. Conversations about what’s realistic — whether that means choosing generic notebooks and sneakers over branded ones or skipping certain extracurricular activities — help children understand financial trade-offs.
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[1]. Nerdwallet. "2025 back-to-school shopping report"
[2]. Businesswire. "Parents navigate rising back-to-school costs as 2025 spending reaches $466 average"
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With a writing and editing career spanning over 13 years, Emma creates and refines content across a broad spectrum of industries, including personal finance, lifestyle, travel, health & wellness, real estate, beauty & fitness and B2B/SaaS/tech. Her versatility comes through contributions to high-profile clients like Moneywise, Healthline, Narcity and Bob Vila, producing content that informs and engages, along with helping book authors tell their stories.
