High back-to-school prices are causing stress for many families. The U.S. Chamber of Commerce estimates that tariffs on educational items have risen to 18%, while prices for books and supplies increased 9.4% from May 2024 to May 2025. To cope, over half of parents plan to cut back on necessities or take on debt.
However, there are ways to save money without sacrificing essential purchases. Seventeen states offer sales tax holidays on summer days, excluding online retailers. Online shopping can be convenient, but it often comes with a price tag – families who shop online spent $100 more than those who shopped in-person.
For those looking for alternative options, local thrift shops like the Chatham PTA Thrift Shops in North Carolina are becoming increasingly popular. These shops offer affordable clothing and school supplies, with hundreds of people visiting daily to find deals.
Consumers can also save money by repairing electronics instead of replacing them, thanks to “right to repair” laws that make it easier to fix devices without manufacturer approval. This could result in savings of up to $300 per year.
Additionally, families can take advantage of tax laws like 529 plans, which allow parents to withdraw funds for qualified education expenses. While contributions may not be deductible from federal income taxes, many states allow deductions and “earnings are not subject to federal or state tax when used for qualified education expenses.”
Finally, involving kids in budgeting discussions can help teach them the value of saving money and reduce impulse purchases. By setting a firm budget and explaining why certain items are worth saving for, families can develop healthy financial habits that last a lifetime.
Note: The article has been simplified and condensed to retain essential information while removing unnecessary details and phrases.
Source: https://edition.cnn.com/2025/08/23/business/back-to-school-savings-tips