Consumers expected to push back-to-school spending to an all-time high in 2017.
While the holidays dominate as the biggest consumer spending seasons of the year – American’s spent $658.31 billion in 2016 – the back-to-school spending season is gaining traction in its own right and is expected to hit an all-time high in 2017.
The National Retail Federation’s annual Back-to-School survey2estimates that total spending – for items such as notebooks, backpacks, electronics and clothing – for school and college is projected to reach $83.6 billion in 2017. That’s a more than 10% increase from 2016. At the household level, families with kids in elementary through high school can plan to spend an average $688 during the 2017 back-to-school frenzy.
Don’t let back-to-school expenses put you in a panic. These shopping tips3 can help ease the financial burden.
- Check deals week to week, as big stores offer different promotions weekly
- Shop at home to unearth last year’s scissors and rulers and barely used colored pencils and glue
- Buy backpacks later in the fall when they go on sale
- Understand what your state’s tax-free weekend includes and what’s exempt
- Purchase gift cards to stores like Macy’s, Dicks and others at a discounted price on websites such as raise.com
- Take advantage of specific store offers, such as rebates and coupons
- Don’t buy all clothes and outerwear now (when’s the last time a child wore a coat to school in August?)
With the money you save, consider investing it for college. Our college funding calculator can give you an idea of what college will cost when your kids are ready to go. Then, talk with a financial advisor at Waddell & Reed about education funding options and a plan for your family.
Learn more about saving for higher education.
Contact a Waddell & Reed advisor today to find out how to incorporate education savings into your financial plan.Find an Advisor
For young adults with college debt, deciding whether to pay off student loans early or contribute to a 401(k) can be tough. It's a financial tug-of-war between digging out from debt today and saving for the future.Read More
1 National Retail Federation, Jan. 13, 2017, https://nrf.com/news/holiday-retail-sales-increased-4-percent-2016
2National Retail Federation, July 13, 2017, https://nrf.com/media/press-releases/back-school-and-back-college-spending-reach-836-billion
3The Kansas City Star, Aug. 1, 2017, http://www.kansascity.com/living/article164653957.html
This information is provided for informational and educational purposes only. Waddell & Reed believes the information has been obtained from sources considered to be reliable, but does not guarantee the accuracy of the information provided. This information is not meant to be a complete summary or statement of all available data necessary for making financial or investment decisions and does not constitute a recommendation.
Please note that the information provided may include references to concepts that have legal, accounting and tax implications. It is not to be construed as legal, accounting or tax advice, and is provided as general information to you to assist in understanding the issues discussed. Neither Waddell & Reed, Inc., nor its Financial Advisors give tax, legal, or accounting advice.
This information is not meant as financial or investment advice pertaining to your personal situation. The selection of appropriate investment, insurance or planning options and/or strategies should be made on an individual basis after consultation with appropriate legal, tax and financial advisors. Nothing contained herein is intended as a solicitation or an offer to buy or sell any product or service mentioned and they may not be suitable for all investors.
Securities offered through Waddell & Reed, Inc., Member FINRA/SIPC, are not insured by FDIC, NCUA or any other government agency, are not deposits or obligations of the financial institution, are not guaranteed by the financial institution, and are subject to risks, including the possible loss of principal. Insurance products are offered through insurance companies with which Waddell & Reed has sales arrangements. Guarantees provided by insurance products are subject to the claims-paying-ability of the issuing insurance company.