Consumers Backing Off From Back-To-School Shopping
Average spending drops for third straight year
For Immediate Release: August 7, 2003
ROCKVILLE, Md. — According to the annual Back-to-School Survey conducted by Myvesta.org, a nonprofit financial management organization, Americans plan to spend $960 less this year on back-to-school purchases. These results continue the downward trend seen over the last three years. The average shopper plans to spend $3,184 this year, down 23 percent from $4,144 in 2002, 36.5 percent from $5,033 in 2001 and 41 percent from $5,423 in 2000. Almost 43 percent of those polled plan on spending under $1,000 on their back-to-school purchases in 2003.
"Economic uncertainty, unemployment and worries about terrorism and war are all playing roles in yet another decline in back-to-school shopping," said Steve Rhode, president and co-founder of Myvesta.org. "People don't want to part with their hard-earned cash very easily these days, which isn't the best news for retailers hoping for big back-to-school numbers."
The Myvesta.org Back-to-School Survey was conducted August 1-3 in a random telephone poll of 1,000 adult Americans. Each respondent was asked about their back-to-school purchases for themselves, family members and others. The average spending in each of seven categories includes:
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Electronics: $327 in 2003, $398 in 2002 (Computers, printers, software, calculators, beepers, cell phones, etc.) |
Dorm Room Supplies: $134 in 2003, $230 in 2002 (Bedding, towels, toiletries, refrigerators, cooking supplies, etc.) |
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Clothing: $514 in 2003, $518 in 2002 (Coats, shoes, uniforms, backpacks, accessories, etc.) |
Desk Supplies: $141 in 2003, $151 in 2002 (Pens, pencils, notebooks, books, reference materials, etc.) |
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Fees: $1,301 in 2003, $1,905 in 2002 (Application fees, tuition, health assessments, deposits, etc.) |
Transportation: $862 in 2003, $1,249 in 2002 (Air, bus and rail travel, car purchase, subway passes, etc.) |
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Sporting Activities: $198 in 2003, $275 in 2002 (Equipment, jerseys, uniforms, coaching fees, etc.) |
Total for Back-to-School: $3,184 in 2003, $4,144 in 2002 (The average of all responses) |
For the second straight year the most significant drop in back-to-school spending was in dorm room supplies. Shoppers plan on spending 42 percent less this year on items for dorm living. Other significant changes in spending include an 18 percent drop in spending on electronics, a 32 percent drop in fees, a 28 percent drop in sporting and extracurricular activities and a 31 percent drop in transportation costs. Other categories remained relatively unchanged.
The survey showed that more than half of American adults (55 percent) will head to the mall for some back-to-school shopping.
"Even though people are planning on spending less this year on their back-to-school purchases, they still need to be careful about how much they are spending," Rhode said. "Back-to-school shopping is the most expensive time of the year for many families, even more expensive than vacation spending and holiday shopping combined. People often don't realize how much they will spend on back-to-school and they fail to plan accordingly."
According to Rhode back-to-school shopping, vacation spending and holiday shopping are part of the "trifecta of debt." In comparison, the average American spent $2,378 on their summer vacation this year and $722 on their holiday purchases in 2002.
If this year's average back-to-school expenses of $3,184 are charged on a credit card and only the minimum monthly payment is made, it will take 38.5 years to pay off and cost an additional $8,483 in interest payments. That calculation uses an 18 percent interest rate and a monthly minimum payment of 2 percent.
"Like any other major expense, good planning can go a long way in stretching your back-to-school dollars further," Rhode said. "A simple act like buying a Sunday newspaper and checking out who has the best deals can save you big bucks. Spreading your shopping out over a few weeks can also lower your back-to-school bills. People often spend more when they are shopping at the last minute and in a rush to get things done."
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MyvestaSM is dedicated to helping people create healthy financial lives. The organization provides a wide range of materials to inspire and inform people so that they can break down their barriers to financial and personal success. For more information visit Myvesta.org online.
