For Tania and Ángel, immigrants from Mexico and parents of three school-age children living in Philadelphia, their small handicrafts business is the family’s primary source of income. The couple covers expenses and builds their household economy through what Tania describes as “hard work and determination.”

Now, rising prices, the theft of the family car, and their children’s return to school have disrupted their financial plans.

“My car was stolen a few months ago, and it hasn’t recovered,” Tania says. So far, she has been unable to replace it, even though the vehicle was essential to her work, allowing her to transport products to festivals and fairs.

“Now I rent a vehicle whenever I have to go somewhere to sell,” she explains. This is no easy task for a family already living on a tight budget, with young children to feed, clothe, and equip with school supplies that have once again increased in price.

Congreso de Latinos Unidos and the Asociación Puertorriqueños en Marcha (APM) echo reports indicating that Latino families are facing an unprecedented financial challenge for the 2026-2027 school year due to a 7.7% increase in the cost of a typical list of basic school supplies. Overall back-to-school preparation costs have also risen by nearly 11% in the Philadelphia region, according to analyses by Groundwork Collaborative and The Century Foundation. As a result, more than half of households are cutting other essential expenses or taking on debt to prepare their children for school.

“Even if you’re earning more money on paper, with the way prices are rising, you end up with less at the end of the month,” Nicole Bachaud, an economist at ZipRecruiter, told Business Insider.

Rising food, fuel, and everyday living expenses have led nearly 45% of parents to say they plan to use credit to cover back-to-school costs. According to a Deloitte survey, almost half have reduced spending in other areas of the household.

As of June, this year Pennsylvania families had spent approximately $3,900 more over the previous 15 months, according to data from the Joint Economic Committee (JEC) and other statistics. The largest increases have been concentrated in housing, food, and energy costs, including gasoline and electricity.

Managing the family budget

According to the Pew Research Center, the Hispanic community has lower average incomes than many other ethnic groups. With a median household income of $70,950 in 2024, Hispanic households have adjusted their spending by prioritizing housing, food, gasoline, and basic utilities. This has led to difficult choices, such as postponing homeownership, limiting access to private education, or relying on family members for childcare.

The challenge is not only how much costs have increased, but that prices continue to rise. Reviewing recurring expenses such as auto insurance, comparing grocery prices, reducing restaurant spending, and monitoring fuel costs can provide significant savings.

The City of Philadelphia offers local and community-based programs that provide financial education, free or low-cost financial counseling in Spanish, and in some cases direct assistance.

Organizations offering financial education and direct support include Ceiba and Esperanza, as well as programs provided by the City of Philadelphia Office of Immigrant Affairs.

Neighboring communities also offer support through organizations such as ACHIEVEability in West Philadelphia and assistance programs like those provided by Casa del Carmen, which offer food assistance, guidance, and other resources.

Back-to-school events

Wednesday, August 19:
ACHIEVEability will distribute 1,000 backpacks filled with school supplies from 4:00 p.m. to 6:00 p.m. at 5901 Market St.

Friday, August 21:
Mansion Youth Coalition Inc. will host a school-supplies giveaway featuring the North Philly Allstars Majorette Team from 10:00 a.m. to 1:00 p.m. at James G. Blaine Elementary School, 3001 W. Berks St.

That same day, the Cecil B. Moore Library will host a back-to-school event featuring family activities, music, snacks, and the distribution of backpacks and school supplies to the first 100 attendees at noon. The event will take place at 2320 Cecil B. Moore Ave.

Sunday, August 23:
The Greater Philadelphia YMCA and Barbers Who Care will offer free haircuts, school supplies, and basic health screenings from 10:00 a.m. to 3:00 p.m. at the West Philadelphia YMCA, 5120 Chestnut St.

From 12:00 p.m. to 3:00 p.m., Canaan Baptist Church, located at 5430 Pulaski Ave., will host the Back-to-School Cuts and Curls event, featuring free haircuts, basic braiding services, and school-supplies distribution.

Also on August 23, from 12:00 p.m. to 4:00 p.m., a cultural school-supplies giveaway organized by Los Rumberos Jeep Club and co-sponsored by Councilmember Quetcy Lozada and State Representative Danilo Burgos will take place at Fairhill Square Park, at the intersection of 4th Street and Lehigh Avenue.

Saturday, September 5:
Elegance Xtreme and other community organizations will host a large family fun day and school-supplies distribution from 12:00 p.m. to 8:00 p.m. at Carroll Park, between 58th and 59th Streets and Girard Avenue and Thompson Street.

Families interested in receiving free school supplies are encouraged to arrive early, as some events have limited quantities and supplies are distributed on a first-come, first-served basis.

Where to donate school supplies

The Young Chances Foundation in Grays Ferry accepts backpacks, notebooks, pencils, pens, crayons, glue, and other school materials through August 30.

Meanwhile, Cradles to Crayons Philadelphia continues to collect school-supply donations at multiple drop-off locations throughout the region.

In addition, the It Takes A Village Foundation is gathering materials for its Classroom Support Box program, which provides educational resources and classroom supplies to teachers. For more information, contact info@itavf.org or call 215-512-6465.