Back-to-school shopping expected to reach almost $900 per household in 2025

It’s that time again — store shelves are packed with crayons and tablets for back-to-school shoppers.

This year, American families are preparing for one of their largest annual expenses: school supplies. Surprisingly, this seasonal cost now rivals—and in some cases exceeds—essential household expenses such as monthly grocery bills or utility costs.¹ What was once considered a relatively minor budget line item has ballooned dramatically, with school supply increasing by 24% between 2020 and 2023—largely driven by rising raw material costs and supply chain disruptions.²

In 2025, families are also navigating the lingering effects of inflation and the renewed impact of tariffs on imported goods—especially electronics and apparel (see below). Prices for school-related items remain high, making this back-to-school season another costly one for households across the country.

Not just a shopping season, but a mirror of the American economy

For most families, it represents a significant financial commitment. Total spending in 2024 was estimated at $38.8 billion, up 48% from 2019 levels, with families spending an average of $875.³

What's driving these numbers?

• Electronics remain a major cost as digital learning has become deeply embedded in education. Even a basic tablet or student Chromebook often exceeds $300.⁴ The Consumer Price Index (CPI) for computers, peripherals, and smart home assistants has been rising since the start of 2025, with a 4.13% increase between January and June 2025.⁵
• Apparel and footwear prices are on the rise, partly due to lingering inflation and newly imposed import tariffs.⁶ The CPI for apparel has seen a modest but consistent uptick, especially for children's clothing and footwear.⁷ Much of this can be attributed to rising input costs (such as labor and cotton), as well as tariff-related pressures.⁸

So, what does the price tag look like in 2025?

Empower estimates that the average back-to-school spending per household in 2025 will be $886—an increase of 1.3% year-over-year—assuming current inflation trends and partial tariff pass-through (figure 1).⁹

Figure 1: Back-to-school costs set to rise in 2025, pushing household spend closer to $900

Source: Empower analysis based on data from the National Retail Federation (NRF), "Majority of Back-to-Class Shoppers Have Already Begun Purchasing School Items" and Bureau of Labor Statistics, "Consumer Price Index - May 2025”.

Shoppers get savvy

As a result of rising costs, Americans are increasingly turning to online shopping for back-to-school purchases.¹⁰ The days of last-minute August hauls are fading, with the majority likely to complete their shopping by the end of July—prompted by early discounting events like Amazon Prime Day.¹¹

According to a recent annual survey by the National Retail Foundation (NRF), Americans are increasingly adopting budget-conscious shopping habits—starting earlier, seeking out sales and coupons, comparing prices both online and in print, and opting for store-brand or generic products to stretch their back-to-school budgets.¹²

2025: Beyond the basics

American families are likely to prioritize essentials this season—though not always in expected ways.

• Many will likely make some trade-offs. For example, cutting back on dining out just to get the right pair of sneakers or tech tool that boosts their child’s confidence or performance.¹³
• Back-to-school shoppers are likely to use platforms like Instagram and TikTok to discover products or score discounts.¹⁴

Generative AI technology, such as ChatGPT, is emerging as a tool to streamline the shopping experience—from price comparisons to real-time reviews. This technology will likely help shoppers make smarter and faster purchasing decisions.¹⁵