Back-to-school shopping on a budget: The surprising place families are finding deals
Back-to-school shopping is in full swing—but this year, parents are getting creative to keep costs down. With fears that tariffs could raise prices on essentials, many families are heading to an unexpected place to score bargains: pawn shops.
According to a survey from the National Retail Federation, families plan to spend about 2% less this back-to-school season compared to last year. Pawn shop owners say they’re seeing more customers than ever, hunting for deals on everything from laptops to sneakers.
Why pawn shops are getting popular
“With the way the economy is right now, people realize that they can go to a pawn shop anywhere in the United States, and they can save tremendous amounts of money,” said Les Gold, owner of American Jewelry and Loan in Detroit.
Pawn shops are proving to be a one-stop shop for back-to-school gear—sneakers for gym class, laptops for homework, musical instruments for band, and even mini-fridges for college dorm rooms. And here’s the kicker: prices are often up to 50% cheaper than major retailers, according to EZPawn, which operates 500 stores nationwide.
“People are struggling more, and that’s why more people are looking for better deals,” Gold explained. “They don’t have the money, and they still want their children to have a laptop.”
Tariffs making retail more expensive
Part of the problem is that tariffs have driven up prices on common school items. The U.S. imports most clothing and shoes from countries like China, Vietnam, and Cambodia—all hit with tariffs as high as 30%.
The result? Prices are creeping up. According to July’s Consumer Price Index, shoe prices jumped 1.4% in just one month, and apparel went up 0.1%.
Pawn shops aren’t affected by tariffs because 98% of their merchandise is pre-owned. That makes them an attractive alternative for families trying to stretch every dollar. “Tariffs are not a factor here at our company simply because our customers are the ones that supply us with the merchandise,” said Renita Parker, a regional director who manages 88 EZPawn stores in Houston.
Trading gold for school supplies
It’s not just shopping — people are also selling valuables to pay for school expenses.
Nick Fulton, managing partner at USA Pawn in Mississippi, said families have been pawning or selling gold jewellery to cover costs. “We’ve seen a big jump, probably in the last three weeks. I feel that they’re selling their jewellery and gold to buy school supplies,” Fulton explained.
Broken gold chains, single earrings, and other forgotten pieces are being exchanged for quick cash. With gold prices soaring—up 27% since January and now trading at about $3,400 an ounce—customers are often shocked at how much their old jewellery is worth. “It’s shocking when we tell people the price that we’re offering,” Fulton said.
Pawn shops as an economic warning sign
The surge in pawn shop traffic is more than just a shopping trend — it may be a sign of financial stress. Experts say pawn shops often get busier when the economy is tough on ordinary Americans.
“You can’t imagine what’s going on in the economy right now unless you live in the pawn shop,” said Gold. “Pawn shops help these people survive by either loaning them money on their merchandise or selling them merchandise for less than if they went anywhere else.”
Many pawn shop customers don’t have access to traditional credit or bank loans, according to the National Pawnbrokers Association. Even those who do may already be carrying significant debt. Credit card debt among U.S. households held steady at $1.2 trillion in the second quarter, according to the New York Federal Reserve.
“In reality, the economy isn’t as good for my clientele,” Gold said. “They’re struggling. We’re not talking about the people that are getting a paycheck once a week and surviving. A lot of the people we deal with don’t get a paycheck every week. They’re surviving day-to-day.”
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The bottom line for parents
Whether you need sneakers, a laptop, or even a trombone for your child’s band class, pawn shops are becoming an unlikely hero for parents trying to stay on budget this year. With prices at major retailers rising, these stores are offering real savings—no tariffs, no inflated costs, and no shame in buying pre-owned.
So if your wallet feels lighter than usual, maybe it’s time to skip the mall and see what treasures your local pawn shop has to offer. After all, who says back-to-school shopping can’t come with a little adventure — and a lot of savings?
