Deloitte’s 19th annual back-to-school survey reveals that parents are reducing technology spending by 16% this year as inflation and economic uncertainty drive a shift toward budget-conscious shopping habits.

Key Points

• Average back-to-school spending per child has dropped to $557, with tech expenditures falling to $417 compared to $498 last year.
• Clothing budgets increased by 22% to $323, reflecting rising costs for essential apparel despite overall economic pessimism among 57% of parents.
• Approximately 73% of consumers intend to keep existing devices longer, delaying upgrades unless new technology offers clear, significant value.
• Shoppers utilizing generative AI tools for research and budgeting spend an average of $737 per child, significantly more than those relying solely on traditional search methods.
• Major retailers including Amazon, Walmart, and Target are increasingly leveraging AI-driven loyalty programs and targeted campaigns to capture the attention of "hyper-value seekers."

Why it Matters

The shift toward extended device lifecycles and AI-assisted bargain hunting signals a fundamental change in consumer behavior that retailers must address to maintain revenue. Businesses that integrate generative AI into their shopping platforms are better positioned to capture higher spending from digitally engaged parents navigating a constrained economic environment.