Great Lakes Wire

The results of a recent national survey report that one-third of American consumers have had to reallocate certain areas of their budget in order to afford rising. back-to-school shopping prices.

To give parents a bit of relief from these high prices, some states have implemented seasonal tax holidays this summer, temporarily removing the sales tax on many essential items. Michigan is not one of the states with a sales tax holiday.

An annual survey provided by the National Retail Federation (NRF) and Prosper Insights & Analytics in July, reports that 38% of consumers are cutting back in certain spending areas in order to cover the cost of back-to-school items.

“Families consider back-to-school and college items as an essential category, and they are taking whatever steps they can, including cutting back on discretionary spending, shopping sales and buying store or off-brand items, in order to purchase what they need for the upcoming school year,” NRF President and CEO Matthew Shay said. “The back-to-school season is among the most significant shopping events for consumers and retailers alike, second only to the winter holiday season.”

NRF reports that total back-to-school spending is expected to match 2021's record-high of $37 billion and exceed 2019's spending by $11 billion. Families with children in grades K-12 plan to spend an average of $864 on school items-- $15 more than last year's reports and $168 more than that of 2019.

Last year's total spending on back-to-college essentials reached a record of $71 billion, the highest in the NRF's survey history. However, total spending in this age category is expected to reach nearly $74 billion this year.

Inflation has impacted prices in all categories of back-to-school shopping. NRF's survey results show a majority (68%) of respondents said they have noticed higher prices among a few top categories, including clothing, accessories and school supplies.

Although Michigan is not one of them, a total of 14 other states have implemented seasonal "tax holidays" this summer, during which there is no state sales tax on certain items such as clothing, school supplies and even technology items like laptops, according to Today.

Walmart, a hot spot for affordable school shopping, noted in July that higher prices on gasoline and food have been forcing shoppers to make fewer discretionary item purchases, and clothing in particular. As a result, the retailer lowered its profit outlook for the rest of the year, according to Today.

The survey received feedback from 7,830 consumers, making it the most comprehensive back-to-class annual survey. It was conducted June 30 to July 7 and has a margin of error of +/-1.1 percentage points.