By CultureBanx Team
- Back-to-school spending is expected to remain around $31.3B for K-12 students
- Parents plan to spend an average of $586 per child as tech gear continues to take over
Getting your kids ready to take on a new school year won’t be cheap as shoppers plan to spend more on back-to-school gear this year. Despite an unpredictable back-to-school environment, overall spending is expected to increase to $31.3 billion for K-12 students, according to a Deloitte Survey. Parents plan to spend an average of $586 per child, as tech gear takes over back-to-school spending.
Why This Matters: Consumers are also using generative AI more this year in their shopping experience, although the numbers are still in their infancy. The survey found that 18% of respondents planned to use generative AI for their back-to-school shopping with 76% of those saying they preferred it for product reviews. Also, low- and middle-income families will spend less on back-to-school supplies for their kids this year than in 2023, down 4% and 9%, respectively, according to Deloitte.
Remote learning had catalyzed sales growth in electronics. Total spending on electronics hit a record-setting $15.2 billion in 2022, with purchases of laptops, tablets and calculators toping the category for the K-12 segment. Last year, back-to-school spending was $529 per household, which was flat compared to 2019.
For the college segment, spending on big-ticket items such as electronics and furnishings, along with necessities like food are expected to represent more than half of the increase in total back-to-college spending this year. College students and their families are expected to spend about $12.2 billion on back-to-college dorm or apartment furnishings, according to Statista.
Situational Awareness: The slightly increased back-to-school budget seems to mirror the economic situation consumers have. Deloitte’s survey found that nearly 70% of parents plan to spend the same or less than last year. Families with students in kindergarten through 12th grade will spend 10% less on back-to-school items this season, according to Deloitte.
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