Back-to-School Spending Holds Steady Despite Economic Anxiety
Event summary
- Parents plan to spend $557 per K-12 student, down $13 YoY but 6% less when adjusted for inflation.
- Economic uncertainty is high, with 57% of surveyed parents expecting the economy to worsen in the next six months.
- Spending shifts from technology (-16%) to clothing and accessories (+22%).
- 31% of parents are hyper value-seekers, adopting four or more cost-saving behaviors.
- Half of parents worry about their child's reliance on AI, but only 33% say their school has AI guidelines.
The big picture
Deloitte's survey highlights a cautious approach to back-to-school spending amid economic uncertainty. While overall spending remains steady, inflation-adjusted figures show a decline, reflecting broader consumer trends of value-seeking and budget restraint. The shift in spending priorities from technology to clothing, coupled with growing concerns about AI use in education, signals potential opportunities for retailers and ed-tech providers.
What we're watching
- Economic Sensitivity
- Whether lower-income and middle-income parents' increased spending due to higher prices can offset reductions from upper-middle-income and higher-income parents.
- Retail Strategy
- How retailers will adapt to the shift in spending from technology to clothing and accessories, particularly given that clothing is the top category people would cut if budgets get too tight.
- AI Opportunities
- The pace at which ed-tech and retailers capitalize on parental concerns about AI, with 13% of parents planning to pay for AI tutoring or camps.