Back-to-School Spending Has a Hidden Second Bill: What Families Should Know

Back-to-school spending is stretching household budgets thinner this year, and the sticker shock does not stop when the first bell rings. Higher prices on basics, brand-name items promoted on social media and a second wave of after-the-fact fees are reshaping how families shop, save and plan.

Thomas McMillan, director of the Center for Retailing Innovation at Mays Business School at Texas A&M University, says families are prioritizing necessities, hunting for promotions and making tougher choices about what children actually need versus what they want.

Why back-to-school spending keeps climbing

McMillan points to inflation and higher product costs as the main forces pushing up the price of basics, according to a Texas A&M interview. He also says tariffs from recent years have become baked into the cost of some products, and that higher oil prices can ripple through the ingredients and materials used to make many everyday items.

Families are feeling the rise in back-to-school spending. One retail industry survey found that 78% of back-to-school shoppers expect higher prices this season.

“The basics are going to cost a little bit more, and that’s squeezing the total budget of the family,” McMillan said.

He also draws a distinction that has become central to how parents approach the aisle. There is the “school list,” which covers required supplies, and the “wish list,” which covers the specific brand or version a child has seen on TikTok or Instagram. A child may need a backpack. A child may want a particular name-brand backpack pushed by an influencer. The gap between the two is where budgets crack.

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How families are cutting back-to-school costs

Parents are adjusting. A JLL back-to-school 2026 shopping report found roughly two-thirds of parents plan to look for sales and coupons this year. More than 43% plan to buy fewer products and focus only on necessities. About 28% plan to reuse existing supplies instead of replacing them, and another 21% plan to buy cheaper or more basic versions of what they need.

McMillan says the shift in back-to-school spending toward promotions and downsized purchases is a direct response to families trying to make the most of a squeezed budget.

How AI can help with back-to-school spending

McMillan says families can also lean on AI tools to compare prices, research products and build a realistic back-to-school budget. Parents can line up different versions of the same item to see which features actually matter for their child, and which are just marketing polish.

He offers a concrete example. A family weighing three laptop models can ask an AI tool to compare them side by side before deciding which one fits best. Shoppers can also ask for less expensive alternatives that deliver similar benefits, which helps separate the must-have from the marketed-to-you.

What hidden back-to-school costs come after school starts

The bigger surprise for many families is what McMillan calls the “hidden second bill.” Once classes begin, extracurricular activities, meal programs, fundraisers and other school fees start hitting household budgets. Teachers may also send home more specific supply requests after seeing what students actually need in the classroom.

McMillan says those later expenses can push back-to-school spending well into the fall. Families with multiple children often plan ahead for the second bill because they have lived through it before.

When back-to-school shopping actually ends

The back-to-school spending season is also getting longer. McMillan says some families now start shopping in June, ride through the big July sales and then hit a second wave of purchases after classes begin and teachers add to the list. For parents, that means back-to-school spending is not a one-weekend expense anymore. It is a rolling expense that lasts most of the summer and bleeds into the school year.