Back-to-School Budget 2025: How to Save Money This Year
- Most families face a lot of expenses when it's time for kids to go back to school.
- Get an early start on shopping so you have more options to track prices.
- Don't buy everything new, and don’t be shy about asking for hand-me-downs.
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The months leading up to the start of a new school year can be exciting and stressful at the same time. For you and your children, it could mean adjusting to a whole new schedule. But also, there's a cost to getting kids ready to go back to school.
If you're worried your back-to-school budget might drive you into debt, you're not alone. In 2024, Deloitte estimated the cost of back to school spending at $586 per student. You might need a larger back-to-school budget if your children play sports or if you need to purchase a new laptop or another expensive learning tool.
With smart budgeting, you can finish your back-to-school shopping list without racking up a huge credit card balance in the process. Here's how to save money on back-to-school shopping this year.
Related: How to get credit card debt relief
1. Get an Early Start
Depending on where you live, school might start up in early August or more than a month later. But if you want to minimize back-to-school spending, your best bet is to give yourself an early start. That could mean getting the ball rolling now.
Starting early gives you more time to compare prices at different retailers and seek out sales on more expensive items. In fact, once you establish your back-to-school budget, identify the two or three most expensive items on your list. Then, shop around to find out which retailers carry those items. Add them to several online shopping carts.
If you monitor those carts for a few weeks, you may find that some prices drop. From there, you can scoop up key items at a discount. You could also install a coupon browser extension that alerts you when there’s a cheaper price available for an item you’re looking at online.
2. Don't Assume You Need to Buy Everything New
There are certain back-to-school items you probably have to buy new (it’s hard to get away with having used notebooks and pencils). But there’s no rule stating that your children’s clothing, backpacks, or electronics can’t be previously used. Buying secondhand could be a huge source of savings.
It especially pays to buy used items when you don’t expect your child to need them for very long. Say you have a high-schooler taking an advanced math class for one semester that requires a fancy calculator. You can probably get away with a used one. Or, if your child is trying lacrosse for the first time and you’re not sure they’ll stick with it beyond one season, why splurge on all new gear?
3. Tap Your Social Network for Hand-Me-Downs
Chances are, you know at least a few people in town whose children are older than yours. If you want to save money on back to school shopping, don’t be shy about reaching out and asking if anyone has hand-me-downs to share, whether it’s clothing, a baseball mitt, or an old laptop they’ve recently upgraded.
Another option? Get involved with your school’s parent-teacher association and coordinate a district-wide swap. You can also post a message about sharing gently used items on your town’s social media page, if it has one, or your neighborhood Buy Nothing page. You may find plenty of parents who are willing to participate so they can help each other out and spend less themselves.
4. Shop on Tax Holidays
If there’s one thing that might throw your back-to-school budget off, it’s taxes. It’s easy enough to forget about taxes, but when you factor them in on clothes, gadgets, and gear, they can really add up.
Some states that normally charge sales tax on back to school items specifically create tax-free weeks to give parents a break. It pays to find out if your state has a program like this in place and do more shopping while it’s happening. If you normally have to pay 8% in taxes, you could save nearly $50 on $400 worth of supplies.
5. Take Advantage of Educator Discounts
If you're an educator or school employee, you may be eligible for discounts from certain retailers at certain times. Make a list of the stores you normally turn to for back-to-school shopping and check their websites for promotions. Also, reach out to fellow educators, as they might alert you to stores running specials you didn’t know about.
If you’re buying back-to-school supplies for your classroom, keep detailed records and hang on to your receipts. In 2025, you can deduct up to $300 in unreimbursed educator expenses on your taxes.
Get Creative to Avoid Debt
In 2024, 31% of parents said back-to-school shopping was likely to force them into debt. If you’re already trying to get rid of your debt, the last thing you need is more. And if you follow these money-saving tips, you may find that you’re able to come up with a back-to-school budget that doesn’t break the bank.
Looking for debt relief in Buffalo, NY or across the country? The first step is the most important one—learn more.
Debt relief by the numbers
We looked at a sample of data from Freedom Debt Relief of people seeking credit card debt relief during February 2026. This data reveals the diversity of individuals seeking help and provides insights into some of their key characteristics.
Debt relief seekers: A quick look at credit cards and FICO scores
Credit card usage varies significantly across different age groups, reflecting diverse financial needs and habits.
In February 2026, the average FICO score for people seeking debt relief programs was 592.
Here's a snapshot by age group among debt relief seekers:
| Age group | Average FICO 9 credit score | Average Credit Utilization |
|---|---|---|
| 18-25 | 575 | 82% |
| 26-35 | 582 | 79% |
| 35-50 | 588 | 77% |
| 51-65 | 589 | 75% |
| Over 65 | 603 | 70% |
| All | 592 | 74% |
Use this data to evaluate your own credit habits, set financial goals, and ensure a balanced approach to managing credit throughout your life.
Personal loan balances – average debt by selected states
Personal loans are one type of installment loans. Generally you borrow at a fixed rate with a fixed monthly payment.
In February 2026, 44% of the debt relief seekers had a personal loan. The average personal loan was $10,718, and the average monthly payment was $362.
Here's a quick look at the top five states by average personal loan balance.
| State | % with personal loan | Avg personal loan balance | Average personal loan original amount | Avg personal loan monthly payment |
|---|---|---|---|---|
| Massachusetts | 42% | $14,653 | $21,431 | $474 |
| Connecticut | 44% | $13,546 | $21,163 | $475 |
| New York | 37% | $13,499 | $20,464 | $447 |
| New Hampshire | 49% | $13,206 | $18,625 | $410 |
| Minnesota | 44% | $12,944 | $18,836 | $470 |
Personal loans are an important financial tool. You can use them for debt consolidation. You can also use them to make large purchases, do home improvements, or for other purposes.
Manage Your Finances Better
Understanding your debt situation is crucial. It could be high credit use, many tradelines, or a low FICO score. The right debt relief can help you manage your money. Begin your journey to financial stability by taking the first step.
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Author Information
Written by
Maurie Backman
Maurie Backman is a personal finance writer with over 10 years of experience. Her coverage areas include retirement, investing, real estate, and credit and debt management.
Reviewed by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
How much should I spend on back-to-school items?
You should try to keep your back-to-school budget to an amount that you can afford. That could mean setting priorities and being willing to buy certain items secondhand.
What’s the best way to pay for back-to-school items?
Your best bet is to pay for back-to-school items using cash, a debit card, or a credit card whose balance you pay in full when it becomes due. If you can avoid it, it’s best not to pay off back-to-school purchases over time since you risk losing money to interest charges.
What should I do if I can’t afford all of my back-to-school purchases?
If you can’t afford everything on your list, set priorities and ask for hand-me-downs. Also, explore whether it’s possible for your kids to share certain items. Try not to put yourself in debt for back-to-school purchases if you can help it.
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