Parents set to fork out $1b

to be bought again, followed by water bottles (78 per cent), pencil cases/stationery (65 per cent), lunch boxes (62 per cent), uniforms (63 per cent), hats (58 per cent) and school bags (44 per cent).

Mozo consumer advocate Tom Godfrey told News Corp family finances were often stressed after the Christmas retail frenzy and families must look for ways to save.

“It’s a great time to teach your kids about budgeting and the price premiums brands charge for similar products,” he said. “Why not show your kids how to bank a saving by avoiding big name brands and opting for a little DIY creative on basic books, bags and notebooks.

“Getting your kids to customise their own products will not only save you money, it’s fun.”

With big ticket items like school shoes, Mr Godfrey said parents should shop around.

“It always pays to check prices online before heading instore,” he said. “And remember, with kids growing so fast, splashing out on a pricey pair might not end up being the best value.”