Struggling Americans Turn to Pawn Shops for Affordable Back-to-School Essentials Amid Tariff Fears and Economic Uncertainty

Amid growing concerns over tariffs escalating prices, families across America are turning to an unexpected source for back-to-school shopping – pawn shops. According to a survey by the National Retail Federation, households plan to spend approximately 2% less this academic season compared to last year. This shift in shopping habits is evident among pawn shop owners who report an increase in customers seeking essential school items.

Les Gold, owner of American Jewelry and Loan in New York City, attributes this trend to the current economic climate: “People realize that they can go to a pawn shop anywhere in the United States and save substantial amounts of money.” Pawn shops serve as one-stop destinations for various back-to-school necessities such as footwear, laptops, musical instruments, and mini-refrigerators for college dorms – all available at significantly lower prices than major retailers.

In a bid to stretch their budgets further, families are prioritizing affordability: “People are struggling more, and that’s why more people are looking for better deals,” explains Gold. As tariffs drive up the costs of certain back-to-school items, such as clothes and shoes imported primarily from China, Vietnam, and Cambodia – all countries subject to tariffs of upwards of 30% – pawn shops emerge as a viable alternative.

EZPawn, a national chain of over 500 pawn shops, has recorded a 4% increase in merchandise sales during the last quarter, with noticeable growth in categories like shoes, boots, electronics, and laptops – key back-to-school items. Renita Parker, a regional director overseeing 88 stores for EZPawn in Houston, highlights that their competitive pricing attracts customers: “We’re getting more customers coming because they know we have reasonable prices and because they don’t really have to worry about the stress of paying retail when it’s unaffordable to them.”

Additionally, 98% of merchandise sold in pawn shops is pre-owned, making them tariff-free. This aspect further adds to their appeal during these economically challenging times: “Tariffs are not a factor here at our company simply because our customers are the ones that supply us with the merchandise,” says Parker.

Beyond just shopping, families are also pawning gold in large quantities to secure extra funds for school supplies. Nick Fulton, managing partner at USA Pawn with six locations in central Mississippi, has noticed a surge in gold sales over the past few weeks: “Families are selling their jewelry and gold to buy school supplies.”

The spike in gold prices since President Donald Trump took office has encouraged Americans to liquidate their gold assets. With prices up about 27% since January, trading at $3,400 an ounce, it’s not surprising that families are opting to capitalize on high gold prices to meet their financial needs.

However, the booming business at pawn shops could serve as an economic indicator of hardship: “You can’t imagine what’s going on in the economy right now unless you live in a pawn shop,” Gold notes. The average pawn shop customer often lacks access to traditional lines of credit or loans, and those who do may be burdened by debt. According to the National Pawnbrokers Association, credit card debt for all American households held steady at $1.2 trillion in the second quarter of this year.

Gold concludes, “We’re not talking about the people that are getting a paycheck once a week and they’re surviving. A lot of the people that we deal with don’t get a paycheck every week. They’re surviving day-to-day.”