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With back-to-school season in full swing, families across the country are continuing to feel the sting of high prices.
In May and June, before the latest round of the Trump administration’s tariffs, the U.S. Chamber of Commerce estimated that tariffs on back-to-school items had risen to 18% (up from 5% a year earlier). A new report from the Bureau of Labor Statistics shows that prices of educational books and supplies increased 9.4% from May 2024 to May 2025.
As costs pile up, over half of parents are planning to cut back on necessities to pay for school-related shopping, and 44% are planning to take on debt, according to a Credit Karma consumer survey. American families expect to spend an average of $570 per student on back-to-school shopping this year, according to a Deloitte survey released in July, and price pressures are pushing consumers to look for savings wherever possible.
Seventeen states have or had sales tax holidays in summer 2025. Each of those states has different policies on which items are included in the tax holiday, and the holidays are spread out, so it’s important to pay close attention to when your state’s holiday is, if it has one.
These purchases don’t have to be in-store either — Amazon and other online retailers won’t charge taxes on eligible deliveries to states with these holidays on the books.
Libraries are a great way to save money not only on physical books, but also e-books, audiobooks and movies. Some public libraries also offer printing services, discounts for local attractions and cost-free tutoring services that can be used year-round.
Deloitte found that over 2 in 3 shoppers will be looking to online retailers to do at least part of their back-to-school shopping.
Shopping online can be a convenient and efficient way to directly compare prices between retailers and makes buying items in bulk (which can take your dollar further) easier. But consumers who do most of their back-to-school shopping online actually spent $100 more than families who relied on in-person shopping, Deloitte reported.
Finding great local deals in person, may mean going beyond traditional retailers.
Tina Marie Barnes, the manager of one of the Chatham PTA Thrift Shops in central North Carolina, said the stores — which raise money for local schools — started stocking up on “any back to school, items, backpacks, lunch boxes, pencils, crayons, notebooks, notebook paper, anything that a child could use” in January. The shops see hundreds of people a day, from families to college students, looking for find deals on clothes and school supplies.
A growing number of Americans live in states with “right to repair” laws that make it easier for consumers and independent businesses to repair electronics without having to go through manufacturers.
These laws are relatively new – New York, the first state to enact one of these laws for consumer electronics, only did so in 2023, and Texas’s governor signed a right to repair law in June. An advocacy organization that supports these laws estimates that they might save families upwards of $300 a year.
529 plans have traditionally allowed families to save money for college, but recent changes might allow families to increase savings before their kids graduate high school.
Included in the One Big Beautiful Bill Act is a change to 529 plans that allow parents to withdraw money from the accounts to pay for expenses related to K-12 schooling, including books, standardized test prep and other “instructional materials.”
While contributions cannot be deducted from federal income taxes, most states allow residents to deduct contributions to these plans from their state income taxes. But importantly, “the earnings are not subject to federal or state tax when they’re used for qualified education expenses,” says Alexander Maged, an employee benefits lawyer at Ivins, Phillips & Barker. Withdrawals for qualified educational expenses are not subject to federal income taxes.
When withdrawing money from these 529 plans, it’s important to maintain good records for purchases, balance current spending with future savings goals, and consult with an IRS representative if you’re unsure about what expenses qualify.
Impulse buying can quickly add up costs, especially when kids want the newest sneakers or an expensive first-day-of-school outfit. Setting a firm budget for back-to-school costs and giving kids a role in the discussion can help save money in the short term and teach kids an invaluable life lesson.
“Families that include kids in back-to-school budgeting often find the process less stressful as children are incentivized to work within limits instead of pushing against them,” Julia Perez, a wealth manager at Crux Wealth Advisors, told CNN in an email.
Kids are often tempted by immediate gratification, she said, so explaining what’s worth saving for can help “develop critical longer-term perspectives that can re-direct impulses and shape behavior.”
“Over time those habits compound. By the time they’re managing rent, student loans, or saving for a first home, saving isn’t an afterthought… it’s second nature.”
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