Every August, millions of American families walk into Target or Walmart and emerge $400–$1,000 lighter without quite understanding how it happened. Back-to-school shopping has become one of the biggest retail seasons of the year — second only to the winter holidays — and retailers are exceptionally good at turning a list of school supplies into a full cart.
The average American family with school-age children spent $890 on back-to-school shopping in 2025, according to the National Retail Federation. Families with high schoolers spent closer to $1,200. But families who plan ahead consistently spend 30–40% less — without their kids feeling deprived.
What back to school actually costs in 2026
Source: National Retail Federation 2025 Back-to-School Survey. Ranges reflect regional cost differences and family spending choices.
How to build your back-to-school budget
The families who spend the least on back-to-school shopping have one thing in common: they set a number before they go to the store. Not a vague intention to "spend less" — an actual dollar amount per child, written down.
Decide your total number and divide it per child before anyone sets foot in a store. Write it down. A reasonable starting point: 50% of last year's actual spending if you felt you overspent, or last year's number if it felt right.
Most schools publish supply lists in July. Don't shop without it. You'll buy things you don't need and miss things you do. Many items on generic lists are already at home.
Pull everything out. What still fits? What's worn out? What's missing? Shop for gaps, not replacements. Kids grow, but they also don't grow as fast as August shopping sprees assume.
Split your budget into buckets: clothing, supplies, gear, activities. Once a bucket is empty, it's empty. This prevents the "but we're already here" effect that inflates spending at the store.
Every unplanned item is a budget leak. If your child finds something not on the list that they want, use it as a birthday or holiday wish list item — not an immediate purchase.
School supplies — what to buy and what to skip
The school supply list is not a shopping list — it's a starting point. Before buying anything, check what you already have at home from last year. Pencils, rulers, scissors, folders, and binders are perennial items that rarely need replacing every year.
- Pencils and pens (cheap, always needed)
- Composition notebooks (grade-specific)
- Specific calculators required by teacher
- Art supplies if they're used up
- Folders if last year's are destroyed
- Scissors, rulers, erasers
- Binders and dividers
- Colored pencils and markers
- Glue sticks (often barely used)
- Index cards and sticky notes
- Fancy organizational systems kids won't use
- Branded character supplies (2× cost, same function)
- Extra supplies "just in case"
- Items not on the school's list
- Supplies for electives not yet confirmed
For commodity supplies — pencils, folders, composition notebooks, glue sticks — Dollar Tree, Amazon Basics, and Walmart store brands are functionally identical to name brands at 20–50% of the cost. A 12-pack of Ticonderoga pencils costs $4. A 12-pack of comparable quality pencils from Amazon Basics costs $2. The pencil doesn't know it's not a brand name.
Clothing strategy for growing kids
Clothing is where most families overspend — and where the biggest savings opportunities exist. The key insight: kids don't need a full wardrobe refresh every August. They need enough for the first few weeks of school. The rest can wait for sales.
Purchase 5–7 school outfits in August — enough for two weeks without repeating. Wait for October and November sales (Columbus Day, Veterans Day) to fill in the rest at 40–60% off. Kids grow, and what fits in August might not fit in January anyway.
Kids need one pair of quality everyday shoes, not three pairs of fashion sneakers. Buy the best quality you can afford in one pair — feet grow fast, and good shoes worn daily outlast multiple pairs of cheap ones.
Children's clothing at thrift stores is frequently near-new — kids grow out of things before wearing them out. ThredUp, Poshmark Kids, and local consignment shops offer name brands at 70–80% off. A $40 hoodie from ThredUp is the same hoodie as the $40 one from the mall.
For anything you buy in August that isn't immediately needed, buy one size up. Kids grow toward clothing — especially in younger grades. A size 8 bought in August for a child who wears size 7 fits perfectly by December.
Technology — when it's worth it
Technology is the fastest-growing back-to-school expense — and the hardest to evaluate because the "need" is often real but the specific item is negotiable.
How to save year-round so August isn't a shock
The families who feel the least financial stress at back-to-school time are the ones who never stopped saving for it. A dedicated back-to-school sinking fund — saving $50–$75/month starting in September — means $600–$900 is ready by August without any single painful withdrawal.
$900 ready in August — no credit card, no stress, no single painful withdrawal.
Keep this sinking fund in a high-yield savings account earning 4%+ so it grows while you save. At $75/month for 11 months plus 4.5% APY, you'd have approximately $920 in August — enough for most families' back-to-school budgets.
Build a budget that includes back-to-school automatically
Our free family budget calculator helps you find the $50–$75/month for a back-to-school sinking fund — without cutting anything that matters.
Try the family budget calculator →Frequently asked questions
For supplies, late July through mid-August is peak deal season — retailers run their deepest supply discounts during this window. For clothing, August is actually not the best time — fall sales in October and November (Columbus Day, Veterans Day) offer 40–60% off. Buy essentials in August and fill in the wardrobe later at sale prices.
Set a per-child budget before shopping and stick to it. Give older kids more ownership — a 13-year-old given $200 and told to make it work learns more than one who gets whatever they point at. For supplies, buy in bulk where possible — two kids needing pencils is cheaper to solve as a household than individually. Hand-me-downs between siblings for clothing reduce the per-child cost significantly.
Yes — if you pay it off in full each month. A cash back credit card on back-to-school spending earns 2–6% back depending on the card and where you shop. A family spending $800 earns $16–$48 in cash back. Never carry a balance for back-to-school purchases — the interest cost wipes out any rewards within 30 days. See our best cash back cards guide for the top options.
Be direct and age-appropriate. For younger kids: "We have $150 for your school things. Let's see what we can find." For tweens and teens: give them the budget and let them make trade-offs. A 12-year-old who chooses the $80 sneakers over the $150 ones to stay in budget learns more than any financial lesson you could teach. Autonomy within a defined budget is one of the best financial education tools available.