Will Parents Finally Get a Break on Back-to-School Spending This Year?
The average family with school-age children will spend $630 on clothing and school supplies before their kids return to the classroom.
That’s down slightly from the $669 spent last year, but represents a 42 percent increase over the past decade, according to the National Retail Federation.
Despite the lower per-family spending, fewer consumers say the economy has influenced their spending plans, and a smaller percentage are looking for sales or buying generic products to save.
Among those surveyed, 93 percent said they’d buy clothing for their kids, laying out an average $218 on new threads and $117 on new shoes. Spending on school supplies will average $98.
Families said they planned to spend an average of $197 on electronics, down from $212 spent in that category last year.
Related: 10 Sure Ways to Save on Back-to-School Shopping
A quarter of those surveyed said that they’d start back-to-school shopping just a week or two before school started, while one in five start shopping two months before school begins.
Discount stores represented the most popular destinations for online shopping (62 percent), followed by department stores (56 percent), and clothing stores (54 percent).
Parents are letting their kids take the lead on some purchases, with 86 percent of shoppers saying that their kids will influence at least a quarter of purchases. Teens will spend $33 of their own money an average, and pre-teens will pay $18 out of pocket.
Total spending on back-to-school shopping will amount to $25 billion for K-12, with another $43 billion spent on back-to-college shopping.
Increasing Number of Americans Delay Medical Care Due to Cost: Gallup
From Gallup: “A record 25% of Americans say they or a family member put off treatment for a serious medical condition in the past year because of the cost, up from 19% a year ago and the highest in Gallup's trend. Another 8% said they or a family member put off treatment for a less serious condition, bringing the total percentage of households delaying care due to costs to 33%, tying the high from 2014.”
Number of the Day: $213 Million
That’s how much the private debt collection program at the IRS collected in the 2019 fiscal year. In the black for the second year in a row, the program cleared nearly $148 million after commissions and administrative costs.
The controversial program, which empowers private firms to go after delinquent taxpayers, began in 2004 and ran for five years before the IRS ended it following a review. It was restarted in 2015 and ran at a loss for the next two years.
Senate Finance Chairman Chuck Grassley (R-IA), who played a central role in establishing the program, said Monday that the net proceeds are currently being used to hire 200 special compliance personnel at the IRS.
US Deficit Up 12% to $342 Billion for First Two Months of Fiscal 2020: CBO
The federal budget deficit for October and November was $342 billion, up $36 billion or 12% from the same period last year, the Congressional Budget Office estimated on Monday. Revenues were up 3% while outlays rose by 6%, CBO said.
Hospitals Sue to Protect Secret Prices
As expected, groups representing hospitals sued the Trump administration Wednesday to stop a new regulation would require them to make public the prices for services they negotiate with insurers. Claiming the rule “is unlawful, several times over,” the industry groups, which include the American Hospital Association, say the rule violates their First Amendment rights, among other issues.
"The burden of compliance with the rule is enormous, and way out of line with any projected benefits associated with the rule," the suit says. In response, a spokesperson for the Department of Health and Human Services said that hospitals “should be ashamed that they aren’t willing to provide American patients the cost of a service before they purchase it.”
See the lawsuit here, or read more at The New York Times.
A Decline in Medicaid and CHIP Enrollment
Between December 2017 and July 2019, enrollment in Medicaid and the Children's Health Insurance Program (CHIP) fell by 1.9 million, or 2.6%. The Kaiser Family Foundation provided an analysis of that drop Monday, saying that while some of it was likely caused by enrollees finding jobs that offer private insurance, a significant portion is related to enrollees losing health insurance of any kind. “Experiences in some states suggest that some eligible people may be losing coverage due to barriers maintaining coverage associated with renewal processes and periodic eligibility checks,” Kaiser said.
