As the back-to-school (BTS) shopping season peaks, Amazon, Walmart and Target are slashing prices on school supplies. In apparel and footwear, Old Navy and Gap are pushing 30 to 50 percent off on basics, denim and children’s wear, while Nike and Adidas are touting promotions of 25 to 40 percent off on footwear, athletic apparel and backpacks.

Retail analysts expect the BTS season to generate close to $31 billion this year.

But retailers and brands face a more cautious consumer who is getting fatigued by higher prices driven by inflation. There’s also a negative impact on one’s mental health connected to the BTS season. New research from Beyond Finance, the debt consolidation service provider, found that parents across the U.S. are caught in what it calls the “Back-to-School Parent Trap,” which is “the emotional tension between protecting their family’s financial future and making sure their children don’t feel left out.”

Eye on the wallet

In Deloitte’s recent BTS survey, researchers at the firm said families are approaching the season “with the same disciplined caution that has defined the post-pandemic years.” Deloitte said it expects spending per child to come in flat year over year at $557. The firm’s consumer poll found that 57 percent of respondents “expect the economy to worsen in the next six months, the highest level reported in the survey since 2020.”

But that doesn’t mean some parents are not willing to spend.

“Parents are, however, taking it in their stride, as value-seeking has become their default mode,” the report’s authors said. “Most back-to-school shoppers use at least one cost-saving tactic, while one-third employ four or more. Notably, these hyper-value seekers (adopting four or more cost-saving behaviors) spend 14 percent more on average, offering opportunities for retailers to earn incremental dollars.”

Still, other consumer polls are finding that most households plan to spend less.

NerdWallet’s BTS consumer poll found that shoppers expect to spend $611 on average on BTS expenses such as clothing, supplies and books. This is $130 less than last year’s average and close to the $610 spent in 2023.

“With other costs, like gas, going up this year, it’s no surprise parents are planning to curb their back-to-school spending,” said Sara Rathner, a NerdWallet credit cards expert. “But a lot of expenses feel out of their control. This can make it tough to stick to a budget.”

Stressing out

In the Beyond Finance report, which was based on a survey of 2,000 U.S. parents, researchers found that 70 percent “feel pressure to buy the same clothes, technology and school supplies as other families, while 61 percent admit they’ve purchased something simply so their child wouldn’t feel left out.”

The report revealed 54 percent of those polled said they worry their child will be judged for reusing clothing or school supplies, while 42 percent of those who’ve made pressure-driven purchases said they later regretted the purchases made.

“The emotional toll is also growing,” the report noted. “Seven in 10 parents (70 percent) say back-to-school shopping is the most financially stressful time of the year, while 58 percent say it’s even more stressful than the holidays.”

Dr. Erika Rasure, chief financial wellness advisor at Beyond Finance, said parents aren’t just buying school supplies. “They’re trying to give their children confidence, belonging, and the best possible start to the school year.”

“When parents feel caught between protecting their child’s emotional well-being and protecting their family’s financial future, it’s easy to make decisions that provide short-term relief but create long-term financial stress,” Rasure explained. “The good news is that children don’t need the newest brand or the most expensive gadget to feel supported. They need to know they’re loved, prepared and valued.”

The report’s authors said the findings underscore how back-to-school shopping has become more than a seasonal expense. “Nearly four in 10 parents (39 percent) expect to take on debt to cover back-to-school expenses this year, and  38 percent said they’ve fallen into back-to-school debt in years past,” the report noted.

The survey also showed many households are finding ways to cut corners. Twenty-seven percent of respondents are using coupons and discounts while 25 percent said they’re borrowing from friends or family. Twenty-three percent of those polled are using buy now, pay later options while 22 percent said they are making purchases from thrift and secondhand stores. Twelve percent said they were pawning possessions to get money for BTS items.

And due to the higher costs of BTS items, 23 percent of those polled said they are giving up saving for the future. Twenty percent said they are not going to pay down debt as a result of higher BTS costs.

The report’s authors also said the survey found that financial pressure doesn’t stop at the checkout line. “It often becomes deeply personal,” the report stated. “Parents admitted that they feel guilty if they’re not able to buy their child everything they want (74 percent). And most (69 percent) said they’d feel like a failure as a parent if they’re not able to buy their kid everything they need for school.”

Rasure said the healthiest financial decisions come from focusing on what a family truly needs and not keeping up with everyone else. “Children remember how supported they felt far more than the logo on a backpack,” Rasure said.