Budgeting back-to-school: Economist weighs in on best ways to save

HUNTSVILLE, Ala. (WHNT) — Back-to-school shoppers are expected to spend more than $800 to send their students back to the classroom, and many families are likely feeling the strain on their wallets, according to the National Retail Federation.

Ben Meadows, an associate professor of economics at the University of Alabama Birmingham, said parents with young children who have not spent the last few years back-to-shopping are most likely to be surprised by the prices they see at the store.

“They’re going to have a little bit of sticker shock looking at school supplies for the first time, as a parent in general, but also in the fact that basically all the inflationary pressures that have come post-2020 and 2021 are now going to be baked into those school supplies,” Meadows said.

Meadows said your best money-saving practice may be shopping at several stores and avoiding impulse purchases.

“Compare prices,” Meadows said. “Make sure you know that the price you’re paying is the best price that’s out there, so that means comparing between multiple vendors. Be careful on the quality points that you’re looking at.”

The price check method is going to be particularly effective for big ticket items, like electronics, clothing and shoes.

“Many retailers are going to use a tactic that economists call price discrimination,” Meadows said. “That sounds scary, but it’s actually a good thing. Price discrimination is things like coupons and buy one, get one free. It is targeted to budget-conscious consumers.”

Even with budgeting, some families may not be able to afford the cost of school supplies. A Huntsville-based nonprofit said it sees the need for supplies in the classroom.

“When you look at an item like your box of crayons, this can really add up,” said Free 2 Teach CEO Alison Kling. “These supplies are expensive for families, and we know that. Our goal is to alleviate the pressure from our families and our students by empowering teachers to meet those needs.”

Free 2 Teach collects school supplies, allowing teachers in Madison County to pick up what they need for their classrooms for free.

“You know that teachers stand in the gap, especially when families struggle to afford supplies in the classroom,” Kling said. “We want to empower teachers to meet the needs of kids without spending out-of-pocket as much as possible.”

Free 2 Teach relies on support from the community, welcoming donations of new and gently used school supplies. The organization has helped more than a thousand teachers over the past two weeks.