With Family Budgets Already Squeezed, Back-to-School Costs Hit Harder
As August approaches, many families are bracing for a familiar financial strain—back-to-school expenses. Gloria Ponce, a mother of six from San Gabriel, California, is one of many who find themselves shelling out hundreds of dollars each summer to prepare her four school-aged children for the new school year. These costs cover new supplies, clothing, and shoes, and typically range from $300 to $500 per child. With high inflation rates driving up the cost of basic goods, this expense has become a significant burden.
Ponce is not alone in feeling the pinch. According to a recent Deloitte survey, Los Angeles parents are expected to spend nearly $200 more this year on back-to-school items compared to last year, with an average expenditure of $921 per child. This is nearly double the national average of $586. The survey highlights that over half of Angelenos attribute this increase to a general rise in prices.
The impact of inflation is evident across the board. One mother shared her frustration online about spending an additional $30 on the same backpack and lunchbox she bought the previous year. For many families, these rising costs are not easily absorbed, especially for those living on tighter budgets. Rebecca Lohrey, Deloitte’s Los Angeles-based audit and assurance partner, noted that inflation is a significant concern for consumers nationwide. “Los Angeles parents expect things to cost more, similar to how everybody in the country is feeling,” she said.
The Deloitte survey found that parents are adjusting their spending habits in response to these higher costs. Low- and middle-income families are cutting back on other expenses to manage their back-to-school budgets. However, in Los Angeles, parents are spending more in every category, including clothing, accessories, tech products, and school supplies. Spending on tech products, for example, saw a notable increase, with Los Angeles parents spending an average of $648 in 2024 compared to $527 in 2023. Nationally, the average spent on tech was $431 in 2024, down from $499 the previous year.
Several factors are contributing to this rise in expenditures. Lohrey identified three main drivers: the increasing cost of goods, additional spending on extracurricular activities, and a willingness to invest in popular brands. In Los Angeles, 90% of parents enroll their children in extracurricular activities, with an average expenditure of $700 on fees and equipment. The amount spent on extracurriculars varies significantly by income level; families earning less than $50,000 annually spend an average of $387, while those earning over $100,000 spend $902.
Parental spending on children’s preferences also plays a crucial role. The survey revealed that 72% of Los Angeles parents let their children’s preferences influence their spending decisions. A Studio City parent, Lisa, shared that her children’s desire for new clothes, shoes, and popular items like Stanley water bottles has a substantial impact on her budget. For instance, her daughter’s request for a pair of $100 Adidas Samba sneakers reflects the trend of prioritizing clothes and accessories over actual school supplies. In tight budget situations, 37% of Los Angeles parents said they would first cut back on supplies such as notebooks and pencils, while 26% would reduce spending on clothing.
This growing trend of prioritizing children’s desires over essential school supplies underscores the pressures faced by families as they navigate back-to-school shopping amid rising costs. The financial strain of these expenses is a reality for many, shaping how families allocate their budgets and manage their resources during this annual period of increased spending.
