Back-to-school shopping is shaping up as another financial strain for Australian families, with new data showing the average household will spend $767 on uniforms, shoes, electronics and other school essentials this year.
Research from Compare the Market suggests the pressure will be felt well beyond January, with 58 per cent of Australians surveyed expecting to rely on some form of debt to cover the cost. Credit cards remain the most common option, used by 38 per cent of respondents, followed by buy now, pay later services at 17 per cent and personal loans at 3 per cent.
The figures line up with the comparison group’s 2025 Household Budget Barometer, which found credit card debt has grown by 9 per cent over the past year, making it the most common form of household borrowing.
Spending varies sharply by state. Families in New South Wales face the highest average outlay at $845, followed by Queensland at $700. Victorian households are expected to spend less than the national average, at $635.
Compare the Market’s Chris Ford said the timing of school expenses was compounding stress for many households already stretched by other bills.
Back-to-school spending is uneven across the country, with families in NSW facing the heaviest costs, averaging $845 per child. Queensland households are close behind at $700, while Victorian families are spending well below the national figure at $635, highlighting how location is shaping the financial load carried by parents ahead of the school year
“Parents don’t get much of a break over summer because when the holiday spending is finally done the school supply list drops,” Mr Ford said.
“This year the average spend is more than $700 and that’s a lot for families who many already be struggling under the weight of energy bills, insurances and mortgages.
“And according to our survey, only a third of parents will pay for supplies out of pocket, with the rest all dipping into credit cards or adding to other debts to survive.”
The long-term cost of that borrowing can be steep. Putting the average $767 school bill on a credit card charging 18 per cent interest would take almost five years to repay if only minimum payments were made. Over that time, the total cost would rise to about $1,150 once interest is included.
Mr Ford said families should try to avoid adding to debt where possible and look for ways to reduce upfront costs.
“Look out for different incentives to ease the burden,” he said. “In Queensland, for example there’s the back-to-school boost that’s an annual contribution of $100 for every primary school student.
“Most schools will sell good-quality second-hand uniforms, or you could try organising a free swap with friends who’ve out-grown their old gear.
“Remember the stationary list is a guide, not a rule book. Crunch the numbers, compare prices and scratch anything off the list that you already have in the bag. Your kids will give you an A+ for saving.”
Research source: Compare the Market, Back to School 2026.
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