Back-to-school season is always a busy time, but in 2025, it comes with a bigger-than-normal price tag. Between inflation, tariffs, and general economic uncertainty, everything from pencils to laptops may cost more this year. According to Business Insider1, inflation is projected to rise to around 5% by mid-2025. For many families, that means tighter budgets and tougher choices.
But here’s the good news. You might be able to outsmart inflation. With some extra planning and a smart spending strategy, you could send your kids back to school fully equipped. Even better, you might do this without sending your finances into a spiral.
Let’s walk through some potentially inflation-busting tips to help you stretch your back-to-school budget a little bit further this year.
Everything May Cost More in 2025
Some level of inflation is almost always expected, although the rate may rise and fall over time. This year, inflation is driven by a mix of supply chain disruptions, labor shortages, and rising tariffs. While the overall inflation rate hovers around 5%, some school-related items have seen even sharper increases, such as:
● Stationery and school supplies: Up 7.6% year-over-year
● Backpacks and bags: Up 6.4%
● Children’s apparel: Up 5.1%
● Electronics (including laptops and calculators): Up 8.2%
● Lunchbox food staples (like juice boxes, fruit snacks, and sandwich fixings): Up 9.3%
The National Retail Federation estimates that families may spend an average of $586 per student on back-to-school shopping in 20252. That’s a significant increase from previous years. And for families with multiple kids, the total spent around back-to-school time may easily climb into the thousands.
1. Start With a Plan and an Inventory
Before you buy anything, do a deep dive into your home’s hidden school supply stash. Check drawers, closets, last year’s backpacks, and craft bins for leftover notebooks, unused folders, or gently used clothing. You might be surprised at what you may cross off your list this way.
Next, involve your kids in making a “Needs vs. Wants” list. This could help you prioritize purchases like required school supplies and new shoes over trendy accessories or duplicate items you don't need.
Tip: Use a simple spreadsheet or budgeting app to keep track of what you already have, what you still need, and how much you hope and plan to spend in each category.
2. Build a Realistic Budget—Then Stick to It
Budgeting is always a good idea. But during times of inflation, it’s essential. Set an overall spending limit, then break it down into categories like clothing and shoes, school supplies, lunch and snack items, and extracurricular fees.
If your kids are old enough, include them in the budget discussions. It’s a great way to teach them financial literacy and set their expectations about budgeting early. Let them help make decisions on trade-offs—for example, choosing between name-brand shoes or a new lunchbox. This may help give them a sense of ownership over their choices and thereby possibly make them feel less deprived.
3. Shop Smart - Time It and Use the Tools
Timing is everything. Many retailers hold sales closer to the first day of school, and some offer lowest-advertised price matching. Additionally, many states host tax-free weekends. These let you avoid paying sales tax on certain school-related purchases. Depending on where you live, this might save you up to 8% or more.
Some other tools and tricks to manage savings include using price comparison apps like Honey or Rakuten. These apps let you hunt for the cheapest price for an item among multiple retailers.
Also, be sure to check for student and educator discounts. You might be able to join store loyalty programs for exclusive discounts and early alerts on sales.
Finally, if you have more than one child, you could buy in bulk for supplies like pens, paper, and snacks. Warehouse stores often offer these items at a much cheaper price than when you buy in smaller amounts.
Tip: Thrift stores, consignment shops, and buy-nothing groups on Facebook may be opportunities to find gently used clothes, backpacks, and even calculators.
4. Use Payment Strategies That Work for You
Insurance is designed to provide coverage for some of life's biggest disasters—fire, floods, car crashes, disability, and death. But when you're on a tight budget, paying even a few extra dollars a month for an insurance policy you may or may not use might seem like a huge ask.
However, it could be penny-wise and pound-foolish to forgo insurance coverage. Here are three types of insurance that are critical to have, even on a shoestring budget.
Disability and Life Insurance
These types of insurance are designed to provide cash—either a lump sum or monthly payment—if you're too disabled to work or unexpectedly pass away. This might be a lifeline for your loved ones, who may be wondering how to pay the bills without your regular paycheck.
Most life insurance and disability policies are relatively inexpensive, especially if you're young and healthy. Paying a few dollars a month might be a great investment when you consider what life insurance is designed to avoid—having your loved ones scrambling to cover funeral expenses when they should instead be grieving your loss. Similarly, disability insurance might help you pay your bills, buy groceries, or avoid downsizing your home or pulling your children out of activities if you unexpectedly find yourself without a regular source of income.
Health Insurance
Health insurance is important for several reasons. First, it may provide you with financial support to help cover the high costs of medical care. Even something as straightforward as a broken limb might cost tens of thousands of dollars—without insurance, these expenses could be major burdens.
Health insurance may also increase your access to healthcare services. With insurance, you're more likely to seek preventive care, which might help you catch health issues early and prevent them from becoming more serious and costly to treat later on.
Even if you're healthy and rarely visit the doctor, health insurance protects against catastrophic events, such as serious accidents or illnesses, that could result in significant medical expenses.
Homeowners or Renters Insurance
These insurance policies could cover your personal belongings in theft, fire, vandalism, or other potential disasters. Even if your belongings aren't rare or expensive, their replacement cost may be substantial, especially when you're forced to replace multiple belongings simultaneously. Renters or homeowners insurance might help you replace and rebuild without incurring any extra debt.
These policies may also provide liability insurance to protect you against lawsuits if someone is injured on your property, such as from slips and falls or pet attacks.
Renters insurance, in particular, could be quite affordable, even for those on a tight budget. Even a bare-bones policy could provide some coverage for unexpected natural disasters, theft, and vandalism.
Important Disclosures:
The insurance content in this material is for general information and not intended to provide specific advice or recommendations for any individual.
This article was prepared by WriterAccess.
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