KPMG Survey: Families reprioritize spending plans as back-to-school cost expectations creep higher

• Back-to-school shoppers expect to spend more in 2025 across all education levels, with the average spend per student expected to increase 10%.
  
• 39% of shoppers report their financial situation is slightly or significantly better than last year, while 34% say it’s worse, and 27% say it’s unchanged year-over-year.
  
• Despite more shoppers feeling better than worse this year, more than half (57%) reported that they still worry about being able to afford food or basic household goods – a 7% increase from last year’s survey. . 

“Families are spreading out purchases to manage rising costs, capture better deals, and reduce pressure on monthly budgets.” said Duleep Rodrigo, KPMG U.S. Consumer & Retail Leader. “It’s a deliberate, strategic shift in how they shop and when.”

• 37% of shoppers expect to spend more per child on back-to-school shopping than last year. Of those expecting to spend more, 74% say it is because they expect things will be more expensive.
  
• 52% plan to buy less overall due to tariffs and 46% plan to look more for discounts or promotions. Only 12% plan no spending changes due to tariffs.
  
• 58% say apparel prices have increased over the past six months. In response, 40% plan to buy fewer items, and 36% plan to shop at more affordable retailers.
  
• In 2025, shoppers expect to spend the most on school supplies (19%), apparel (16%), and footwear (12%), together accounting for 47% of total spend.
  
• When asked which factors were the most important when purchasing back-to-school clothing, respondents cited price and discount (70%), durability/quality (64%), and availability of sizes and styles (44%) as the three most important factors. 
  
• When asked how they managed the costs of back-to-school tech purchases, 26% of shoppers say they are by purchasing early and waiting for deals.

“While an elongated back-to-school season gives retailers more opportunities to engage shoppers, it also heightens pressure to plan earlier, spend more on sustained engagement, and tailor promotions with greater precision across a longer timeline,” continued Rodrigo.

• Among shoppers buying teen beauty products, 52% plan to spend more than last year, with 51% citing increased interest from their teen as the reason for increased spend.
  
• Top self-care products: hair care (79%), body care (71%), and skin care (67%).
  
• Purchase decisions are most influenced by friends and peers (66%), followed by social media (63%).
  

“While families prioritize school essentials, teens have carved out significant spending power in the beauty category – turning haircare and other routine accessories into must-haves for the school year making beauty and wellness a growth driver in an otherwise budget-conscious shopping season,” said Julia Wilson.

• 42% of back-to-school shoppers indicated that their children participated in outdoor sports, and nearly one third (28%) indicated their child participates in indoor sports, with the top activities respectively being soccer (50%) and basketball (57%).
  
• When asked how they would adjust their spending to ensure their child could continue to participate in sports, respondents cited cutting down on dining out and non-essential food items (47%), reducing spending on personal leisure and entertainment (46%), and delaying or minimizing travel and vacation plans (31%). 

“What’s considered ‘essential’ can sometimes be in the eye of the consumer – and that’s where the real competition lies,” continued Wilson. “For many families, sports aren’t optional. They’re seen as investments in a child’s development.”