(NEW YORK) — Parents faced steeper prices for back-to-school shopping this year, with costs rising 7.3% amid tariffs, according to a new Century Foundation report.
The price hikes affected everything from basic supplies to electronics, with some items seeing dramatic increases. Index cards jumped 42%, while three-ring binders cost nearly 13% more than last year, ABC News business correspondent Alexis Christoforous reported.
“Parents are facing price increases across a number of categories when it comes to school supplies,” Dr. Sarah Dickerson, a research economist at UNC Chapel Hill Kenan-Flagler Business School, told ABC11. “If we look at pencils, for instance, we know the wooden pencils are imported from Brazil. We are anticipating price hikes there.”
According to Capital One Shopping research, Americans spent $125.4 billion on back-to-school and college shopping in 2024, with the average household budgeting $874.68 for school supplies. For one K-12 student, parents spent an average of $586 on supplies.
However, experts say there are ways to manage these rising costs. Christoforous recommended buying in bulk during sales to save money throughout the year, especially for basic supplies like pencils and pens.
She also suggested choosing generic brands over name brands, noting that some generic pencils cost as little as a dollar compared to $5 for well-known brands.
For parents looking to stretch their budgets further, Christoforous highlighted the benefits of thrift shopping for school supplies, where shoppers can often find unexpected deals.
When it comes to expensive electronics, she advised looking for refurbished laptops and tablets that come with warranties from major retailers. Additionally, she urged parents to take advantage of tax-free shopping periods, which many states offer during the back-to-school season.
As of 2025, 18 states offered tax-free shopping periods, according to the Federation of Tax Administrators. Some states, like Florida, extended these savings throughout August, while others limited them to specific weekends.
“A lot of the big retailers sell refurbished electronics with warranties,” Christoforous said, noting that electronics were particularly affected by tariffs due to overseas manufacturing and imported components.
For budget-conscious parents, Christoforous also suggested meal planning as a cost-saving measure.
“When you make dinner, make extra,” she advised. “That way you have leftovers and you’re not scrambling every day, going ‘What’s going to be for lunch?'”
Despite these challenges, Capital One Shopping research showed that household back-to-school budgets decreased by $15.39 or 1.73% compared to the previous year, suggesting that many families found ways to adapt to the higher prices.
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