Deloitte: Spending Stays Put - Parents Hold Firm on Back-to-School Budgets

New York, July 10, 2025

Key takeaways

• Back-to-school spending for K-12 students will likely remain steady, estimated to reach a collective $30.9 billion, or approximately $570 per student, based on those surveyed.
• Back-to-school shoppers surveyed plan to increase their spending on clothing and accessories (+6%), while spending on technology and school supplies is expected to decline by 8% and 3%, respectively.
• Mass merchants (83%) and online retailers (68%) are the top retail destinations as surveyed consumers continue to value-seek. 
• Despite budget concerns, 57% of surveyed parents say they can be enticed to splurge on a first day of school outfit.
• Nearly all parents (9 in 10) surveyed plan to enroll their children in extracurricular activities, spending an average of $532 per child on fees and equipment, down $50 from 2024.
• Younger parents are reshaping some expectations of back-to-school shopping. 75% of Gen Z parents and 46% of Millennial parents are planning to use social media in their shopping journey. Social media users typically spend1.8x compared to others.

Why this matters
Amid concerns about the economy and their financial situations, value appears important to K-12 parents this school year. According to the “2025 Deloitte Back-to-School Survey,” K-12 parents plan to focus on just the essentials, trade down on brands and retailers, and spread out expenses over a more extended period of time, creating an opportunity for merchants to place a premium on value. Eight in 10 (83%) surveyed parents say their households are in a similar or worse financial situation than last year, and more than half (54%) expect the economy to weaken in the next six months – the lowest levels in the past five years.

Parents are taking a cautious approach to fulfill back-to-school needs
Based on the intentions of those surveyed, back-to-school spending is expected to remain flat at $30.9 billion this year. Parents expect to spend $570 per student in grades K-12, down just $16 year-over-year. Despite higher prices in nearly all categories, this year’s spending is expected to be 7% below 2021.

• More than half (52%) of surveyed parents say they are anxious about the potential for higher prices on back-to-school items. The same percentage plans to cut back on other expenses, such as dining out and entertainment, to make room in their budgets for back-to-school items.
• Respondents expect to increase their spending on clothing and accessories, up 6% to $13.4 billion. Spending on all other categories is expected to decline: technology (-8%); school supplies (-3%); and other home and health products, including personal hygiene items and educational furniture (-12%).
• Lower-income parents plan to spend 10% more year-over-year, while middle- and higher-income parents plan to spend 7% and 9% less, respectively.

• Despite keeping an eye on their budget, 62% of surveyed parents say their children often influence them to spend more, and 57% say they can be enticed to splurge on a first day of school outfit.
• While extracurricular activities remain a priority, surveyed parents plan to cut costs. Nine in 10 plan to enroll their children in extracurriculars, spending an average of $532 per child on fees and equipment, down $50 year-over-year. Respondents say that extracurriculars are important for a child’s mental health (87%) and developing skills that artificial intelligence (AI) can’t compete with (83%).
• Deciding what to make for school lunch is a pain point for 45% of parents surveyed. 42% of respondents say their children bring lunch from home on most school days; they note that a monthly average of $164 is reasonable to spend on daily school lunch.

—  Natalie Martini, vice chair and U.S. Retail & Consumer Products sector leader, Deloitte

Savvy shoppers make the grade
Parents are looking to ensure their children have what they need to be ready for the school year, and plan to use value-seeking skills to get it. This means making cost-conscious choices, deal-driven purchases, and sacrificing convenience.

• 61% of planned back-to-school spending is expected to occur by the end of July, down from 66% in 2024, with 49% of parents planning to spread out their purchases over time.
• Nearly half (46%) plan to shop during mid-July promotional events, the same as in 2024.
• Mass merchant retailers continue to lead the way, with more people planning to shop there, increasing by six percentage points year-over-year. They’re followed by online and off-price retailers, dollar stores, and warehouse membership clubs.
• Parents plan to shop at five retail formats on average. According to survey respondents, the main reason for spending the most at a retailer is value for the money (54%).
• K-12 parents surveyed showcase value-seeking behavior in a variety of ways:

• Those looking for deals may sacrifice loyalty: 75% say they will shift brands if the preferred brand is too expensive (versus 67% in 2024), 65% say they will shop at more affordable retailers (versus 62% in 2024), and 50% will shop for private labels over name brands (flat year-over-year).
• The average spend of those who shop primarily online is expected to be $601, $100 more than that of those who plan to shop mostly in-store.

Younger parents rewire some shopping patterns
As younger generations navigate ways to value-seek, they turn to social media to find the best deals and compare prices.

• Among those surveyed, 75% of Gen Z parents and 46% of Millennials parents plan to use social media for their back-to-school shopping; they are likely to spend 1.8x more compared to others who don’t use social media.

• 32% of parents say influencer content is more trustworthy than brand content and that number climbs to 59% for Gen Z.
• One-third (33%) of parents surveyed plan to use GenAI for back-to-school shopping, yet only 22% say they trust it. Meanwhile, Gen Z is overwhelmingly embracing AI in the shopping journey (67%), twice the rate of millennials (34%) and Gen X (29%).
• Half (48%) of surveyed parents plan to buy American made products as much as possible, and this sentiment is expected to be higher among Gen Z shoppers (62%).

—  Brian McCarthy, principal, Retail Strategy, Deloitte Consulting LLP

Deloitte’s back-to-school survey was conducted online using an independent research panel between May 21 and May 30, 2025, and surveyed 1,203 parents with at least one child attending school in grades K-12 this fall.

Connect with us on LinkedIn @NatalieMartini and @BrianCMcCarthy.