The school I teach at does both- you can buy the pre-packaged cardboard suitcase of supplies or use the supply list and buy your own. The pre-packaged is usually done out of convenience for families with lots of kids in different grade levels or who don't want to buy their own- so I'd be bummed!
I hate walmart but their ad had CHEAP supplies- maybe because I'm a teacher (or possibly because I'm a nerd) I LOVE school supply shopping!
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