Back-to-School Spending Declines by 10% on Inflation Impact; How Does it Affect Parents? 

Back-to-school season is just around the corner, and families in the United States are bracing themselves for the impact of rising inflation on their back-to-school spending.

With limited disposable income, parents are likely to face challenges as they shop for essential back-to-school spending items such as clothing, shoes, and electronics. (Photo: Promociones)

Back-to-School Spending Declines by 10% on Inflation Impact

According to a recent study and forecast by  Deloitte, this year back-to-school spending is expected to decrease by 10% compared to last year, having an average expenditure of $597 per student.

This decline in back-to-school spending is particularly noteworthy as Deloitte’s forecast has not predicted a decrease in back-to-school spending since 2014.

The report points out several factors that are influencing back-to-school spending patterns.

According to a published article in market realist, a significant 51% of parents planning to spend less this year cited reduced disposable income as the primary reason for their decision. This figure marks a substantial increase from 45% in 2022, indicating the growing financial strain on families.

On the other hand, 75% of parents expecting to spend more this year attributed their decision to increased prices, highlighting the impact of inflation on consumer purchasing power.

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How the Decline of Back-to-School Spending Affects Parents

According to Investopedia, in the survey conducted by Deloitte, over 50% of parents expressed their belief that the economy will experience a decline in the upcoming six months.

Additionally, three out of every ten parents stated that their financial situation at home has deteriorated this year when compared to the previous year.

These figures indicate that parents are becoming more strategic in their spending choices. They are prioritizing important items like school supplies while deferring non-essential purchases like new clothing until necessary. However, amidst the overall decline in back-to-school spending, there is a silver lining for retailers.

The report indicates that many parents are willing to splurge on specific items to treat their children, presenting an opportunity for retailers to capitalize on this trend.

Retailers can focus on promoting and marketing items that appeal to parents looking to provide their children with a memorable back-to-school experience.

By understanding the changing dynamics of consumer behavior, retailers can tailor their offerings to meet the needs and desires of parents, ensuring a successful start to the school year for children.

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