Survey: Rising costs boosting planned back-to-school spending
A majority of back-to-school and back-to-college shoppers are planning to spend the same amount or more than last year, even in the face of newly-implemented tariffs on imported goods.
Half (53%) of shoppers plan to spend the “same” as last year, while nearly four-in-10 (39%) plan to increase their spending, according to a recent survey from Bread Financial. Those spending more are driven by need, specifically citing rising prices (52%) and advancing students becoming more expensive (49%).
More than eight-in-10 (86%) shoppers say that inflation is impacting their planned spending. This is in line with last year’s figure of 88%, showing that high prices have remained consistent. Half (54%) of those surveyed said they are “extremely” or “moderately” concerned that tariffs could drive prices up further.
Three-quarters (75%) of back-to-school and back-to-college shoppers plan to seek sales and shop around this year. Forty-two percent say they are looking for additional discounts and offers, 38% say they will purchase similar items at a lower cost, and 36% plan to purchase more from discount retailers.
Debit cards are the most popular planned payment method for back-to-school purchases at 60%, down slightly from the actual percentage (64%) who used debit cards last year. Cash is the next most popular payment method at 46%, followed by bank-branded debit cards (34%) and retail credit cards (30%). Those planning to use pay-over-time platforms increased compared to those who used the services last year (26% vs. 20%).
[READ MORE: Survey: Ads key for shoppers' back-to-school purchasing decisions]
“While consumers at-large have shown resiliency in their 2025 spending overall, the back-to-school/college season is landing just as tariff talks are heating up again, creating an aura of spending uncertainty,” said Bread Financial. “Retailers seeking to build momentum headed into the holiday season should stir up spending excitement with personalized, enticing deals and offers for back-to-class, saving the most compelling discounts for their best customers.”
Bread Financial’s back-to-school/college Look Ahead survey was fielded on July 25.
