Stories

Back-to-school shopping has long been one of the biggest retail moments of the year, but according to new research from PayPal, it's beginning to rival the busy holiday shopping season. A new PayPal commissioned survey conducted by Morning Consult of more than 3,000 U.S. parents found that 57% say back-to-school shopping is now just as stressful as holiday shopping, while more than half (53%) say it's even more stressful than it was last year.

This year nearly half of parents (48%) expect to spend more than they did last year, while only 13% expect to spend less. And the spending won’t stop once classes begin, one in four parents anticipate making six or more additional school-related purchases even after the school year starts.

As prices continue to rise and shopping stretches beyond the first day of school, families are looking for smarter ways to shop, pay and save throughout the season.

Shopping Beyond the School Supply List

Today's back-to-school budget extends well beyond notebooks and backpacks. Clothing and shoes remain the largest spending category, with nearly six in ten parents expecting to spend between $100 and $500, while nearly one in five expect to spend more than $500 on apparel alone.

Parents are also looking to simplify the experience itself. Nearly two-thirds (64%) say they would prefer one app where they can find deals, shop and pay, while 68% believe doing so would make back-to-school shopping less stressful. The new PayPal app, available on iOS and Android, makes shopping, paying for purchases, and managing money easy because it streamlines everything in one centralized place.

Parents are also fitting shopping into everyday life moments instead of dedicated shopping trips. While two-thirds still shop in-store, many are purchasing from their phones while watching TV (34%), relaxing in bed (35%), during lunch breaks (19%) or even while commuting (11%). The result is a shopping season that unfolds over weeks, not days.

Flexibility and Simplicity Matter More Than Ever

As families juggle larger and more frequent purchases, flexibility in how they pay is becoming a deciding factor in where they shop.

More than half of parents (57%) say they're more likely to shop with retailers that offer flexible payment options, while 56% say Buy Now, Pay Later (BNPL) helps them better manage back-to-school costs. Among parents considering BNPL this season, nearly half (49%) say they want to split larger purchases into smaller, more manageable payments.

For shoppers looking for additional flexibility, PayPal Pay in 4 allows eligible shoppers to spread purchases into four interest-free payments on qualifying purchases, helping families better manage larger seasonal expenses. BNPL, when used responsibly, could be used as a cash flow management and budgeting tool that allows a shopper a fixed repayment amount and schedule.

Younger parents are also approaching back-to-school shopping differently.

Thirty percent of Gen Z parents say they've purchased a back-to-school item after discovering it on social media, significantly higher than parents overall. They're also more likely to intentionally save rewards for the season. More than half (53%) say flexible payment availability influences which retailer they choose, and nearly two-thirds (63%) say Buy Now, Pay Later helps make back-to-school costs easier to manage.

These behaviors point to a broader shift in consumer expectations: shoppers increasingly want to discover, save, shop and pay seamlessly, whether they're browsing social media, shopping online or checking out in-store.

Parents Favor Rewarding Ways to Pay

While payment flexibility is increasingly important, debit cards remain the payment method parents reach for most often across nearly every back-to-school purchase category. Parents say debit is their preferred payment method for school supplies (39%), textbooks (34%), electronics (31%), clothing and shoes (36%), sporting equipment (32%) and dorm furnishings (27%).

With the PayPal Debit Mastercard® parents can shop smarter and earn rewards. Each month, parents can earn 5% back on up to $1,000 of eligible purchases in a selected monthly category*, on top of retailer loyalty or discounts in the PayPal app. This is a great way to maximize savings on all the back-to-school essentials so that parents are maximizing every dollar spent.

Credit cards are also a top preference for parents when shopping for items on their back-to-school lists, especially because of the rewards they can earn. Parents say credit is a close second for school supplies (22%), textbooks (24%), electronics (28%), clothing and shoes (26%), sporting equipment (24%) and dorm furnishings (23%). Plus, parents also like paying with credit for the rewards. Over one third (35%) of parents say they have been intentionally saving rewards to use for back-to-school purchases. With the PayPal Cashback Mastercard® parents can earn 3% on PayPal purchases and 1.5% on all other purchases, in addition to retailer loyalty programs or discounts offered in the PayPal app.

Helping Families Navigate a Busy Season

As back-to-school shopping continues to grow into one of the year's biggest spending moments, families are looking for tools that help them manage both their budgets and their time.

Whether using the PayPal app to shop across merchants, paying with the PayPal Debit Mastercard®, or spreading eligible purchases over time with PayPal Pay in 4, PayPal offers consumers flexible ways to navigate one of the busiest shopping seasons of the year.

_{Survey Methodology: This survey was commissioned by PayPal and conducted online by Morning Consult between June 26–28, 2026, among 3,003 U.S. parents with children under age 18. Results have a margin of error of +/- 2 percentage points.}

_{The PayPal Debit Mastercard® is issued by The Bancorp Bank, N.A. (“The Bancorp”) pursuant to a license by Mastercard International Incorporated and may be used everywhere Mastercard is accepted. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. The Bancorp is issuer of the Card only and not responsible for the associated accounts or other products, services, or offers from PayPal.}

_{Opinions, advice, services, or other information or content expressed or contributed here by customers, users, or others, are those of the respective author(s) or contributor(s) and do not necessarily state or reflect those of The Bancorp Bank, N.A. (“Bank”).  Bank is not responsible for the accuracy of any content provided by author(s) or contributor(s).}

_{PayPal is a financial technology company, not a bank. The Card is linked to your PayPal Balance Account. See PayPal Balance Terms and Conditions.}

_{*5% back earned as points on up to $1,000 of selected category spend per month. Earned as points redeemable for multiple options. Terms apply.}