Record $41.5B in Back-to-School Shopping Forecasted for 2023, With 30% of Parents Using Credit Cards
Americans are expected to spend a record-shattering $41.5 billion on back-to-shopping in 2023, according to the National Retail Federation -- and a new survey from The Motley Fool Ascent shows that over 30% of parents surveyed will use credit cards for all or some of that shopping.
Parents in 2023 will spend roughly $895 on back-to-school shopping. Clothes and electronics make up the largest expenses.
For many parents, that's a significant amount of spending to go on a credit card and is likely the most they have ever spent on a single year of back-to-school shopping.
For a full report on the back-to-school budget parents are expecting to work with, read on.
Key findings
- 30% of parents surveyed by The Motley Fool Ascent will rely on credit cards for back-to-school shopping and another 18% will use a combination of credit cards, debit cards, and cash.
- Parents surveyed by The Motley Fool Ascent will spend an average of $895 on back-to-school shopping, with clothing and electronics being the most expensive categories.
- Back-to-school shopping will total a record $41.5 billion in 2023, according to data from the National Retail Federation.
30% of parents will rely on credit cards for back-to-school shopping
With back-to-school spending expected to be at record levels in 2023, 30% of parents surveyed by The Motley Fool Ascent will shop with a credit card and another 18% will use a combination of spending options including a credit card.
Thirty-five percent of parents surveyed will rely on their debit cards while 16% say they'll use cash.
Just 1% expect to do all their shopping with buy now, pay later products.
How do you intend to pay for your back-to-school shopping?
| Credit card | Debit card | Cash | Buy now, pay later | A combination of those options |
|---|---|---|---|---|
| 30% | 35% | 16% | 1% | 18% |
Used responsibly, credit cards can net good rewards for back-to-school shopping, especially if purchases are made with a store card that matches where you expect to do most of your shopping.
47% of parents will do back-to-school shopping based on lists schools provide retailers
It's becoming more common for retailers to allow schools and teachers to post their back-to-school supply lists online, providing a streamlined shopping experience for parents. It's no surprise then that 47% of parents surveyed by The Motley Fool Ascent will use that feature for back-to-school shopping.
Forty-two percent won't shop off a list and just 19% will make back-to-school purchases directly from their kid's school.
Participants were asked, "Will you make any back to school purchases directly from schools or from lists of mandatory supplies they have provided to retailers?"
| I will make some back-to-school purchases directly from my child's school | I will make some back-to-school purchases from lists of mandatory supplies my child's school has supplied to retailers | I will not make back-to-school purchases directly from a school or list of mandatory supplies a school has provided a retailer. |
|---|---|---|
| 19% | 47% | 42% |
Some retailers hosting back-to-school lists allow parents to search by ZIP code, school, grade, and teacher, and then add all items on the list to a shopping cart, creating a simplified back-to-school shopping experience.
The average back-to-school shopping budget
Parents surveyed by The Motley Fool Ascent will spend an average of $895 on back-to-school shopping. Here's how that spending is broken down by category:
| Amount spent | Percent of back-to-school spending | |
|---|---|---|
| Clothing, excluding shoes | $202 | 23% |
| Electronics | $161 | 18% |
| Shoes | $118 | 13% |
| Childcare before or after school | $112 | 13% |
| School lunches | $111 | 12% |
| Mandatory school supplies | $77 | 9% |
| Transportation to and from school | $70 | 8% |
| Backpack or bookbag | $45 | 5% |
| Total spend | $895 |
Parents expect to spend an average of $202 on clothing and $161 on electronics when doing back-to-school shopping, making those the most expensive categories for back-to-school shopping.
Backpacks/bookbags and transportation are the two least expensive parts of the back-to-school budget of parents surveyed by The Motley Fool Ascent.
The National Retail Federation also collects data on back-to-school shopping. Here's how The Motley Fool Ascent's back-to-school budget survey data compares to the National Retail Federation.
| The Motley Fool Ascent | NRF | |
|---|---|---|
| Clothing, excluding shoes | $202 | $257 |
| Electronics | $161 | $326 |
| Shoes | $118 | $167 |
| Child care before or after school | $112 | – |
| School lunches | $111 | – |
| Mandatory school supplies | $77 | $140 |
| Transportation to and from school | $70 | – |
| Backpack or bookbag | $45 | – |
| Total spend | $895 | $890 |
Parents surveyed by the National Retail Federation expect to spend roughly double on electronics compared to parents surveyed by The Motley Fool Ascent.
They also expect to spend more on clothing, although the National Retail Federation includes accessories in that category while The Motley Fool Ascent broke out book bags and backpacks and did not include accessories alongside clothes.
The National Retail Federation also reports higher spending on mandatory school supplies and shoes, and did not survey on child care, school lunches, and transportation.
Despite those differences, both back-to-school budgets came out to just under $900. Discrepancies in the composition of those budgets could be a result of the huge variety in back-to-school shopping requirements from schools and teachers across the country.
On the other hand, Deloitte projects back-to-school spending per household to decline 10% year over year, from $661 in 2022 to $597 due to inflation leading parents to spend less on clothing and technology -- the two big-ticket spending categories. That's due to the monthly rate of inflation being lower than in 2022.
How back-to-school spending has changed over time
Back-to-school shopping spending is expected to be record breaking in every retail category in 2023, according to the National Retail Federation.
Here's how back-to-school spending has changed over time:
These are highlights from the National Retail Federation's dataset on back-to-school spending:
- Total back-to-school spending has more than tripled since 2007, growing from $18.4 billion to $41.5 billion.
- Spending by household has almost doubled over the same period, from $563 in 2007 to $890 in 2023.
- Back-to-school spending has grown most in electronics.
- Total spending on electronics more than tripled from $4.2 billion in 2007 to $15.2 billion in 2023 while per household spending more than doubled from $129 to $326 over the same period.
- It wasn't until 2020 that back-to school spending on electronics per household and overall overtook spending on clothing.
What's behind the jump in spending on back-to-school electronics, like phones and laptops?
Spending in that category has grown an average of 6% per year since 2007, based on National Retail Foundation data. Meanwhile, spending on clothes and school supplies has grown at 1% per year on average and spending on shoes grew an average of 3% per year.
Kids in school are digital natives, with smartphones, tablets, laptops, and other technology being an integral part of their upbringing. As that technology has become more ubiquitous in and outside of the classroom, parents have spent more on it for their kids going back to school.
More parents are looking for back-to-school shopping savings due to the economy
With inflation recently cutting into parents' paychecks and making back-to-school supplies more expensive, a larger percentage than previously recorded are looking for ways to save on back-to-school shopping.
Forty-five percent of parents surveyed by the National Retail Federation plan to do more comparative shopping online, another 45% say they will shop for sales more often, and 39% say they plan to buy more store brand or generic items. All of those are record highs.
How will the state of the U.S. economy impact your back-to-class purchases?
| Year | Doing more comparative shopping online | Shopping for sales more often | Buying more store brand/generic products |
|---|---|---|---|
| 2019 | 28% | 30% | 24% |
| 2020 | 35% | 38% | 24% |
| 2021 | 30% | 36% | 27% |
| 2022 | 43% | 42% | 35% |
| 2023 | 45% | 45% | 39% |
A higher percentage of parents plan to set aside prioritizing items labeled as sustainable in search of savings, according to Deloitte's back-to-school survey.
Another sign that parents are seeking to save is the fact that 80% of parents are opting to shop at mass merchants that can offer good deals, per Deloitte.
Parents are also opting to do back-to-school shopping earlier, a finding from both Deloitte and National Retail Federation, perhaps due to fears of a weakening economy or persistent inflation.
How to save on back-to-school shopping
With parents planning to spend record amounts on back-to-school shopping, many are looking for savings. Here are some tips:
- Factor back-to-school shopping into your budget and try to project spending into future years, so expenses don't take you off guard.
- Find the best credit card for back-to-school shopping to maximize rewards and cash back.
- If shopping through a retailer that has received a school supply list or at a store you frequent, see if there's a rewards program that offers discounts or other rewards.
Sources
- Deloitte (2023). "2023 Deloitte back-to-school survey."
- National Retail Federation (2023). "Back-to-Class Data Center."
Methodology
The Motley Fool Ascent distributed a survey via Pollfish on July 17, 2023 to 2,000 American adults with one or more children. Survey results were post-stratified to generate a nationally representative sample for gender and age. Among respondents, 51.55% have one child, 27.5% have two children, 12.2% have three children, and 8.75% have three or more children. Pollfish employs organic random device engagement sampling.
Our Research Expert
Jack Caporal is the Research Director for The Motley Fool and The Motley Fool Ascent.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.