Families are not holding back on back-to-school spending this year, despite growing economic pressure, according to a new PwC consumer survey.
Nearly three-quarters of back-to-school shoppers expect to spend the same amount or more this year than they did in 2024, according to PwC’s survey of nearly 2,000 parents. In fact, more than 1 in 3 parents anticipate spending more than they did last year.
“A lot of it is necessities. It’s people knowing that they’re going to have to get this specific book, or these specific supplies for school or they require technology for their kids,” said Kelly Pedersen, PwC’s U.S. retail leader.
The results indicate a value-oriented consumer, Pedersen said, but at the same time, back-to-school spending is insulated because “this is just necessary spend every year.”
The results come as consumers grapple with an uncertain economic environment due to global trade dynamics. While consumer confidence for May was stronger than expected, spending for the month pulled back sharply.
The temporary pauses on some of President Donald Trump’s tariffs have been viewed as a positive indicator for consumers, although the long-term path forward for tariffs remains unclear, especially as some retailers have said they will raise prices.
Among the back-to-school shopping destinations, Walmart and Target said they plan to hike some prices, while Best Buy is among the retailers that said it has already raised some prices.
“A lot of the average consumers in the U.S. sort of feel this cloud hanging above of, when are the tariffs going to hit, and what are those going to do to prices,” Pedersen said.
He said value will be important moving forward, as he has seen consumers shifting toward more discount retailers over the past couple of months.
Indeed, buying items only on discount and reusing items from previous years are among the top ways consumers plan on saving during back-to-school season, according to the survey.
For those who are cutting back on back-to-school spending, technology and clothing are the top two categories where they’re planning to pull back, according to PwC, while essentials like books and school supplies are more insulated.
On back-to-school technology, 25% of parents plan to spend more than $500, while 42% expect to pay under $50.
While the amount of back-to-school spending has stayed relatively constant overall, parents are changing the ways they shop.
Artificial intelligence in particular is impacting how parents handle the back-to-school season. One in 5 shoppers plan to use AI tools to find online deals, according to the survey.
When it comes to physical retail, Gen Z is leading the way. Gen Z parents surveyed were more likely than millennials or Gen X parents to shop exclusively in store, suggesting the younger generation could be contributing to brick-and-mortar resilience, PwC said.
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