Two boys and a girl put their hands up in class in the 1950’s. (Photo by FPG/Getty Images)
By now, it’s a safe bet to assume that most of us have at least heard the murmurs and whispers about the expected impact that inflation will have on back-to-school (BTS heretofore) shopping and spending. Thus far, much has been written about how consumers have felt the pinch and plan to handle it financially. Whether they’re waiting for tax free days, skipping vacations, or eyeing the sales more closely, offsetting inflation is a primary concern this year. The nation’s educators who make up a huge segment of this target demographic also have to grapple with the same higher prices and possible stockouts as they set out to outfit their classrooms for the new school year.
The inflation factor is one that probably feels unusual to most people under 45. For as long as this generation can remember, relatively low inflation has been an expected and understood norm. When inflation remains at a lower and more easily predictable rate, consumers like the under 45 set directly benefit from its advantages, which include having a more robust picture about how much they have to spend and where they will spend it.
This past year, a nearly four-decades long time period of low, stable inflation concluded. In its wake, consumers (and educators) are scrambling. A handful of weeks ago, Deloitte and the National Retail Federation (NRF) released their numbers forecasts for BTS 2022. Both entities reported that the expected spend prices are higher this year compared to the past handful of years.
Vintage illustration of a large red delicious apple sitting on a teacher’s desk at school, with a … [+]
Inflation dominated the top-of-mind concerns list for most consumers this year, as they scrambled to offset it. According to the insurance company Nationwide, consumers reported plans to cut back their budgets by doing things like driving their vehicles less and skipping vacations.
According to the NRF, although inflation was a top concern, consumers were still prepared to spend. Average expected household spend hit $864 this year, up slightly from $849 last year, but significantly higher than $697 in 2019, which represents the last BTS season where shopping was “normal” because of COVID-19. Deloitte forecast parents planned to spend an average of $661 to fund needed materials and supplies for the 2022-2023 school year, up from $612 in 2021.
So what of the nation’s educators this year? How will they deck out their classrooms and provide the needed supplies? It’s no secret that each year, many of them have to shell out money, some of which comes out of pocket, to get their classrooms properly set up and supplied. Ellen Luca, who works for a school district in northern New Jersey, says that every year, she and her colleagues, which includes professionals and teachers, receive a line item that her principal budgets for them. But, “there are things you will always need,” she says. “Things the teachers have to pay for out of pocket.” Educators at Luca’s school receive an allotted amount of money for supplies that varies each year based on class size and district initiatives.
Allotments aside, teachers often still find themselves reaching into their own pockets to bridge supply gaps and inflation isn’t helping them any. A recent report by Savings.com revealed that on average, teachers will spend $560 out of pocket for supplies this year, up from $511 last year. However, nearly one in four teachers said they’d spend over $750 of their own money. Savings.com also noted that elementary teachers received about $11 per student from cool budgets but they spend an extra $33 per student out of pocket, and one in four teachers said their school didn’t allocate funds this year for classroom items.
“While teachers certainly are spending money on items some may consider non-essential, such as decor and prizes, they’re dedicating most money to non-consumable items,” reports Savings.com. “This includes books, curriculum, and software—items most people would deem necessities for learning.”
One remedy to ease the cash crunch has come from higher up. In response to the rising costs, the IRS has implemented an increase that lets teachers deduct up to $300 of out-of-pocket classroom expenses. This is up from a $250 deduction that has been allowed since the incentive was first started in 2002, according to NPR. The IRS also said that the increment could rise by $50 per year based on inflation adjustments.
“Potentially more money [to deduct] would be huge,” says Luca, who, like her colleagues, takes pains to save up her receipts each year for the deductions.
Other ways to help consumers beat the inflation included directing parents to Amazon Wishlists and lawmakers are even getting into the game by providing opportunities for consumers and teachers alike to save money. States like New Jersey have responded to the consumer crisis by designating a specific handful of days as tax-free. This move allows consumers to save on the regularly applicable taxes for back-to-school items during that time period.
Bridging the financial gap and dodging inflation will not be easy this year, and the future looks uncertain as to when the pain will subside, but many educators are determined to keep the magic alive. For Luca, the 2022-2023 school year still represents a season of hope and opportunity. “Overall, last year was a hard year for teachers,” she says. “I’m optimistic that this year will be a better one.”
And, if she finds herself in a bind for supplies, there’s always the teacher’s best friend and fallback courteously of a little creative repurposing. “Teachers, in general, are creative. We reuse, save, and repurpose things,” she says. “For instance, we take empty, clean yogurt cups and reuse them for building or painting projects.”
Source: https://www.forbes.com/sites/gracelwilliams/2022/08/31/how-educators-plan-to-manage-outsmart-inflation-this-back-to-school-season/