Families Head Back to School on a Budget

Aug. 19, 2008— -- Along historic Route 66 in Kingman, Ariz., communities strapped by high food and gas prices are struggling to get their kids ready to go back to school.

"We're definitely having to get just the bare minimum this year," said Tanya Barca, a mother of two. "I'm trying to make my money stretch this year."

Barca's back-to-school budget has dropped this year from $250 per child to just $100, causing her to search for bargain buys.

In the next aisle, Wendy Powell, a mother of three, said tough times have left her with only $20 per child for her back-to-school supplies.

"They are using last year's clothes absolutely, but they're also using last year's crayons and different things that I have left over," Wendy said. "They don't get the extra folders they want or the pretty pencils or whatever they want."

It's the same story nationwide, where 71 percent of consumers say they plan to spend less on back-to-school shopping this year, according to a survey conducted by the Deloitte LLP consulting firm. The survey concluded that 79 percent said that they will buy back-to-school items on sale, relying on coupons and discount stores for the best prices.

"You can really see that people are looking at the value," said Jeff Tipton, manager of the Kingman Wal-Mart. "They're looking very price-conscious."

Even just the back-to-school necessities add up quickly: a new backpack is around $20, a new lunch pail is around $10 and, by the time you add in all the new folders, pens, pencils and other supplies, you've spent nearly $50 for one child -- and that's before buying a single piece of clothing.

"I'm buying them less and they're not getting to pick out much this year," Barca said.

For her teenage son, that means no new shoes.

"The shoes on me are getting tighter and the shoe prices are going up, so she can't afford the shoes," her son said.

To help, the Kingman Unified School District is passing out donated backpacks – 3,600 so far.

"Backpacks are really important to us when we're in an economic crisis," said superintendent Roger Jacks. "We want to try and help out our parents as much as we can."