Ways to Reduce Expenses During the Back-to-School Period for Families
The back-to-school season is currently in progress across the country, and families are grappling with rising costs associated with educational books, supplies, and electronics.
According to the Bureau of Labor Statistics, prices of these essential items increased by 9.4% from May 2024 to May 2025. This surge has prompted many families to seek ways to save money and make their budgets stretch further.
One solution that has gained traction is the enactment of consumer electronics right-to-repair laws. New York was the first state to enact such a law in 2023, followed by Texas in June. These laws allow consumers to repair their own electronics, potentially saving families upwards of $300 a year.
In addition, several states, including Texas, Florida, and New York, have planned or already conducted back-to-school sales tax holiday events. These events provide a temporary exemption from sales tax on certain items, helping families save on their back-to-school shopping.
However, tariffs on back-to-school items rose to 18% in May and June 2025, according to the U.S. Chamber of Commerce. This increase has further strained family budgets.
One way to combat these rising costs is by setting savings goals and involving children in the budgeting process. Explaining what's worth saving for can help develop critical longer-term perspectives in children, while also teaching them an invaluable life lesson about budgeting and saving.
Another strategy is to shop locally. Non-traditional retailers like thrift shops can offer great deals on school supplies. Additionally, libraries offer free or discounted access to physical books, e-books, audiobooks, and movies, providing an affordable alternative to purchasing new educational materials.
For families looking to save for future educational expenses, 529 plans can be a useful tool. Contributions to these plans are not deductible from federal income taxes, but most states allow residents to deduct contributions from their state income taxes. Withdrawals for qualified educational expenses from 529 plans are not subject to federal or state tax.
The One Big Beautiful Bill Act allows families to withdraw money from 529 plans to pay for expenses related to K-12 schooling, in addition to college expenses. It's important to maintain good records for purchases, balance current spending with future savings goals, and consult with an IRS representative if unsure about what expenses qualify when withdrawing money from 529 plans.
Unfortunately, over half of parents are planning to cut back on necessities to pay for school-related shopping, and 44% are planning to take on debt for these expenses, according to a Credit Karma consumer survey.
However, there is a growing number of Americans living in states with "right to repair" laws for consumer electronics, offering a potential solution to the rising costs of educational items.
In summary, the back-to-school season can be a challenging time for families, but there are strategies to navigate the costs and save money. From involving children in budgeting, shopping locally, utilising libraries, and considering 529 plans, families can make their back-to-school budgets go further and teach their children valuable life lessons.
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