38% of Canadian Households Will Rely on Buy Now, Pay Later to Cover Back-to-School Costs

Back-to-school shopping is increasingly becoming a budgeting challenge rather than a seasonal errand. A new survey of 1,068 Canadian consumers by Omnisend found that 44% of parents expect it to be more financially stressful than last year, with many relying on installment payments, credit, or savings to cover the cost. 

Overall, 39% expect to spend more than $500 on back-to-school shopping this year, including 15% who anticipate spending over $1,000. Parents are most worried about affording:

• Apparel such as shoes (44%), clothing and uniforms (44%), and backpacks (31%)
• Electronics like laptops and calculators (36%)
• Basic school supplies such as notebooks and pens (34%)

To manage those costs, 38% of households plan to use Buy Now, Pay Later (BNPL) for back-to-school purchases, up from 24% last year. Nearly 18% expect BNPL to cover more than half of their back-to-school spending.

“Buy Now, Pay Later used to be associated with discretionary spending. Now it’s increasingly becoming a budgeting tool for predictable, everyday expenses. Back-to-school shopping isn’t a surprise purchase, so the fact that so many parents still rely on BNPL suggests household budgets have less room to absorb even expected annual costs,” says Marty Bauer, Ecommerce Expert at Omnisend.

Parents are cutting back elsewhere to afford back-to-school shopping

The pressure isn’t just about covering essentials. 52% of parents worry their child could feel left out because of what they can or can’t afford. Because of this, 30% plan to buy items their child wants – and they’re ready to make sacrifices elsewhere:

• 36% plan to cut back on family activities and entertainment
• 27% plan to use credit
• 18% plan to use savings that were meant for something else
• 17% might delay paying bills

“When it comes to back-to-school shopping, emotional pressure often matters just as much as the price tag. This isn’t just about buying what’s on the school list – there are expectations around clothing, shoes, backpacks, and technology, so it’s only natural that many parents worry that falling short could leave their child feeling excluded,” says Bauer.