SEATTLE -- What's big for kids is huge for retailers.

This is the back to school shopping season, and it's a make or break time for stores.

That's why you'll see ads for school supplies for a penny. Or better yet, for free.

Stores are slashing prices to get you in the door.

It worked on Vijya Ammankallu. And just like Staples hoped, after she picks up her 10 free folders, she fills out more of her list.

But she won't buy everything here.

"At this time with the economy, I feel like I need to shop around a little bit," says Ammankallu. "Looking at the paper and looking around makes sense because everything adds up a lot."

The National Retail Federation says it will add up to $20 billion.

"Back to school" is one of the most important seasons in the retail world.

"I would put it on par for Christmas for us," describes Staples manager Nick Reynolds. "We see a higher volume of customer traffic typically around this time of year and a lot more fresh faces. Both of them are huge seasons for us."

But our KOMO 4 morning show financial reporter Carter Evans says so far, parents aren't opening up their wallets.

"I think Wal-Mart's recent sales report would indicate that," he says. "Sales were up 3% but analysts were expecting more. And they're saying it indicates those stimulus checks have already been spent."

So shoppers have to look around.

Joseph LeClair read off his list.

"Rulers, calculators, colored pencils, compass, the whole works."

When asked how hard is it to find all that and keep it on a budget, LeClair replied, "Oh, it's hard. I'm going from place to place."

And that marks a change in back to school strategies.

"One stop shopping" used to be key. Now it's price.

When it comes to back to school clothing, you'll save money by waiting for sales.

Consumer Reports recommends waiting until the Labor Day sales in September or even the Columbus Day sales in October.

You can also save on supplies by clipping coupons.

Consumer Reports recommends this site: www.couponcabin.com