Key takeaways: 

• Parents of school-aged children plan to spend an average of $875 on back-to-school items – for parents of kids in college the total rises to $1,365
• Total school supply spending is anticipated to reach $39 billion for the 2024-25 academic year
• Manufacturing costs of key back-to-school items have increased an average of 24% in the past 5 years

Each year, the first day of school means households are stocking up on backpack essentials, from books to tech and apparel to crayons. Companies are preparing too: Almost half of Crayola’s annual sales come between July 4^th and Labor day, with its flagship factory churning out 13 million crayons a day ready for the back-to-school season.¹

While inflation has broadly slowed this back to school season – falling below 3% for the first time since 2021 – consumers are still feeling sticker shock from rising prices (and growing school supply lists) in recent years.

Back-to-school budgets 

Families plan to spend an average of $875 ahead of the 2024 school year, and parents with college-aged kids anticipate spending $1,365 on average.² Altogether, this year’s school supply spending, including for college students, is expected to reach $38.8 billion.

While 65% of consumers started shopping early this year to spread out their spending, those who wait for a single shopping spree may feel the greatest sticker shock.¹ With the average salary in the U.S. just over $65,000, ticking off the supply list could forfeit 20% of one adult’s monthly take home pay.^* 

1 in 5 parents say they’ll use buy now, pay later (BNPL) services to cover back-to-school expenses.³ Empower Personal Dashboard^TM data indicates the numbers of BNPL users increased 7% from June to July, at the height of the back-to-school shopping season – most parents (72%) start shopping between 3 and 8 weeks before school starts.²

The receipts 

Empower analysis of the Producer Price Index (PPI) – a measure of inflation – reveals the cost to produce products across 5 key school supply categories increased by 24% in the past 5 years, on average.⁴

While the PPI is not a measure of consumer spending, producers can pass added expenses onto buyers^** in the form of smaller products or higher prices – and Americans are taking note. Empower research shows 75% of people feel the higher prices go, the less they’re getting in return.

How have prices changed since 2019? 

Trending top of the class 

As families continue to navigate the purchasing power of a dollar, many are balancing budget-friendly school supplies with trending items that may be more pricey.

At least 6 in 10 parents say their children are influenced by social media (60%) and friends (67%) on what to buy for back-to-school.⁵

This year, one third of 18 – 24-year-olds are turning to the likes of Instagram and TikTok for college shopping inspiration.² Empower research shows Gen Zers spend over 3 hours a day “dreamscrolling” – looking online at items they’d like to purchase.

But it’s not just Gen Z building their back-to-class wish-lists from social media: 65% of kids aged 8-10 are spending up to 4 hours scrolling the apps.⁶

Some 85% of parents said they could be influenced to splurge on a “must-have” item or brand for the school year.⁷

According to this year’s trend watchers, some of the luxury go-tos include:⁸

🎧 Apple Airpod Max headphones ($549)

👜 Longchamp tote bag ($155)

👟 Adidas Gazelle sneakers ($120)

💧 Owala FreeSip water bottle ($37.99)

💄Summer Friday’s lip balm ($24)