The provided text discusses the financial strain on American families during back-to-school shopping, attributing it to a combination of factors including inflation adn potential new tariffs.
Here’s a breakdown of the key points:
Tariffs and Rising Costs: Donald Trump’s new tariffs are cited as a reason for increased costs of back-to-school essentials like book bags,clothes,and supplies. While apparel prices have seen a slight decrease, this is offset by rising prices in other categories. Concerns exist that prices could rise further after August 1st when higher tariffs are set to hit several countries.
Consumer Behavior: Families are responding by shopping earlier, seeking discounts, and opting for alternative brands to manage costs.
Savings Strategies: Parents are employing various strategies,including comparison shopping (73%),buying from discount stores (69%),using “buy now,pay later” services (44%),and choosing hand-me-downs (41%).
sacrifices and Anxiety: Over half of parents (54%) are sacrificing necessities like groceries to afford school supplies. Many are also using back-to-school sales to buy holiday gifts simultaneously. Back-to-school shopping is a significant source of anxiety for over half of parents, especially those with multiple children.
Impact on Extracurriculars and Work: High living costs are forcing parents to take on debt and forgo after-school activities, with 45% unable to afford extracurricular programs. Some are even considering cutting work hours or leaving their jobs. Expert Opinions:
Alex beene (University of Tennessee at Martin) expresses concern about rising credit card debt, linking it to inflationary pressures and stagnant wage growth. He notes that the increased reliance on debt for back-to-school shopping indicates financial fragility among consumers.
Kevin Thompson (9i capital Group) highlights the difficulty of affording basic necessities like groceries, stating that while some disinflation is occurring, prices are not decreasing.
drew Powers (Powers Financial Group) points out that inflation has made back-to-school shopping more expensive, with even items like calculators now considered necessary technology. he also mentions a “spending problem” where parents succumb to fad purchases to avoid their children being left out.
Future Outlook: Consumers are preparing for potential price hikes if the paused tariffs fully take effect. Experts advise parents to prioritize necessities over fad purchases and buy gradually as their budget allows. Retail analysts expect further increases in school supply costs if tariffs proceed, exacerbating the financial strain on families.
