Back-too-School Spending Sees Parents Embracing Installment Plans and Tax holidays for 2025 School Year
As the 2025 school year approaches, parents are adopting new strategies to manage back-to-school expenses, with a important portion planning to utilize store-offered installment plans and capitalize on state tax holidays. This shift reflects a growing trend in how families approach the annual back-to-school shopping season,aiming to ease financial burdens and maximize savings.
Installment Plans gain Traction
Retailers are increasingly offering their own installment payment options, allowing children to receive their desired items immediately while parents can spread the cost over time, frequently enough aligning payments with report card periods. This provides immediate gratification for students and a more manageable payment schedule for guardians.
State Tax Holidays as a key Shopping Driver
State sales tax holidays have emerged as a significant factor in back-to-school shopping. A substantial 84% of parents report strategically timing their major purchases around these tax-free periods.These holidays can offer savings of up to 8% on eligible items, effectively reducing the overall cost of school supplies and apparel.
Rise of Secondhand and Side Hustles
the popularity of secondhand and resold school items is on the rise, with nearly half of parents indicating they purchase at least some pre-owned gear.Platforms like Poshmark and Facebook Marketplace are facilitating this trend.Concurrently, a majority of parents (72%) are taking on additional work or cutting back on discretionary spending to fund the upcoming academic year, an increase from 56% in 2024.
Regional spending Disparities Highlighted
Spending patterns for back-to-school shopping vary significantly by state. In 2025, New York is identified as the most expensive state, with an average expenditure of $1,123 per child. Florida and California follow closely behind. In contrast, states like Louisiana, Mississippi, and West Virginia offer more budget-friendly options, with average spending as low as $321 per child.
The annual back-to-school shopping period presents a common challenge for parents, who navigate supply lists, tax savings opportunities, and the sheer volume of items needed. These evolving consumer behaviors underscore a collective effort to manage the financial demands of education.
