Wealthier Americans are cutting back-to-school spending by 20%
Higher-income U.S. parents plan to reduce their back-to-school spending, while less-wealthy families are trading down to cheaper products – the latest evidence of heightened consumer caution in a period of rising prices.
Parents with annual earnings of more than $100,000 expect to spend less on school-related shopping this year, according to a Deloitte survey of families in late May. A majority cite tighter wallets, with those making more than $200,000 a year saying they plan to spend 20% less than in 2025.
On the other end of the spectrum, families earning less than $100,000 a year expect to spend more, mostly due to higher prices.
The data shows growing apprehension about the economic outlook. Caution among higher-income households is of particular concern for retailers: Many companies have said that cohort has helped to make up for the erosion in spending by lower earners.
It’s also a warning for retailers such as Walmart and Target , which rely on back-to-school season to bolster their results during the summer months and are stepping up discounts to attract shoppers.
On Wednesday, Kohl’s touted thousands of products under $25 for back-to-school shoppers, a day after Dollar General said it would offer more than 70 items in that category for a dollar or less. Earlier this week, Walmart and Sam’s Club announced lower prices on thousands of items.
About 70% of parents surveyed said they plan to target such promotional summer events, with clothing and classroom supplies atop their lists.
Back-to-school spending is expected to slip to $557 per child, from $570 in 2025, according to Deloitte, which surveyed more than 1,200 parents in late May. That’s roughly 6% less than 2025 when adjusted for inflation.
Spending on tech products – especially laptops and smartphones – is expected to take the largest hit with a 16% drop, as dollars shift to clothing and accessories.
Parents are cutting costs by switching brands, buying in bulk, using cash-back websites and seeking out retailers with lower prices, Deloitte’s research shows.
“Value-seeking represents a durable shift in mindset rather than a short-term response to pricing pressure as consumers look to get more out of every dollar,” the authors wrote.