Back to InsightsAI Workforce Readiness in Financial Services v1
In our 19th annual Back-to-School Survey, families are approaching the season with the same disciplined caution that has defined the post-pandemic years. Expected spending per child holds flat at $557, with an estimated BTS market of $30.4 billion. 1 Inflation reached 4.2% in May, 2 and consumer sentiment remains weak: Fifty-seven percent expect the economy to worsen in the next six months, the highest level reported in the survey since 2020. Parents are, however, taking it in their stride, as value-seeking has become their default mode.
Most back-to-school shoppers use at least one cost-saving tactic, while one-third employ four or more. Notably, these hyper-value seekers (adopting four or more cost-saving behaviors) spend 14% more on average, offering opportunities for retailers to earn incremental dollars.
While budgets are flat, a shift is evident in what parents are purchasing. They plan to spend 22% more on clothing and accessories this year as they replace worn items and allow selective splurges; tech spending is expected to decrease 16% as device upgrades get deferred. Spending on school supplies is expected to be flat as parents look to stick to what’s on the list.
Digital tools are reshaping the back-to-school shopping landscape in ways retailers may not be able to afford to overlook. Planned spend is consistently higher among parents across all income groups who use a broader set of digital tools in their shopping journey.
Non-tech users (20%) plan to spend $381, while those planning to use search engines (30%) plan to spend $494 on average. As respondents add additional tech tools, their spend goes up: Those using search and social media (21%) spend an average of $539, and those who use search, social media, and generative AI (29%) have the highest planned spend at $737.
“The implication is clear: The more digitally engaged the shopper, the greater the spending potential.”
For retailers, an opportunity lies in going beyond just discounting to meet disciplined shoppers with sharper relevance. Parents are still spending, but they are making clearer trade-offs: prioritizing replacement items, using digital tools to plan, and timing purchases around value moments. Retailers that can make those decisions easier, more personalized, and more rewarding have room to capture growth even in a constrained season.