By Brandpoint
CENTRE COUNTY — With pencils sharpened and backpacks zipped, American families head back to school facing rising prices. New Empower research finds that 50% of Americans say back-to-school shopping is more expensive this year due to inflation and 31% report feeling stressed about these expenses.
STRESS HITS HARDEST FOR YOUNGER GENERATIONS
Nearly one in three Americans (31%) report feeling stressed about back-to-school expenses this year, according to new research from Empower. That number climbs sharply among Millennials and Gen Z, where nearly half (43%) say the season comes with financial anxiety.
Nearly four in 10 (39%) cite tariffs as a factor making supplies more expensive.
SWIPING SMART: HOW FAMILIES ARE PAYING FOR BACK-TO-SCHOOL
More than a third of respondents report they’re spending more this year than last year (35%). Americans say they are spending $188 on back-to-school supplies this season, with younger generations spending the bulk:
- Millennials: $394
- Gen Z: $276
- Gen X: $178
- Boomers: $34
To fund these costs, families are turning to a mix of payment strategies:
- 37% use debit cards or checking accounts
- 23% rely on credit cards
- 15% dip into personal savings
- 7% turn to friends or family
- 5% opt for buy now, pay later (BNPL) options
One in five Millennials say they use BNPL to pay for back-to-school costs (19%).
EARLY SHOPPERS
Many are getting a head start: 34% of Americans shop for back-to-school items earlier than they used to in order to spread out costs over time (42% Gen Z, 45% Millennials). Nearly one in five shop in July (16%), with 22% continuing into August.
A third of Americans (34%) have set aside specific savings for back-to-school expenses, a habit more common among younger generations (46% Gen Z; 48% Millennials).
CUTTING BACK TO GEAR UP
To make room in their budgets, Americans — especially younger ones — are trimming elsewhere:
- 42% of Millennials are cutting back in other areas to afford school expenses
- 51% of Americans say even small purchases now feel like big decisions
WHAT’S IN THE BAG?
Back-to-school spending isn’t just about notebooks and pencils anymore. Here’s where the dollars are going:
- School supplies (notebooks, backpacks, etc.): 42%
- Clothing and shoes: 41%
- Technology: 20%
- Transportation (bus passes, gas): 17%
- Extracurriculars (sports, clubs): 13%
- Childcare/afterschool programs: 7%
DEALS, DISCOUNTS AND DIGITAL HELP
In a world where every dollar counts, 74% of shoppers say price and discounts top their decision-making list, followed by quality (56%), brand (30%) and loyalty rewards (26%). More than four in 10 (43%) Americans say they wait for a sale or discount before purchasing — especially Gen Z (54%) and Millennials (52%).
TECH-SAVVY SHOPPERS ARE EVEN TURNING TO ARTIFICIAL INTELLIGENCE
- 30% of Millennials have used AI to track down the best deals
- 27% have used AI to build their school shopping lists
Visit The Currency to read Empower’s full research report, “The Backpack Economy.”
METHODOLOGY
Empower’s “Backpack Economy” study is based on online survey responses from 2,201 Americans ages 18+ fielded by a third-party panel provider from June 29 through June 31, 2025. The survey is weighted to be nationally representative of U.S. adults.
