Back-to-School Shoppers Need a Reality Check
Average shopping spree is $5,033
For Immediate Release: August 21, 2001
ROCKVILLE, Md. — Back-to-school shoppers will spend an average of $5,033 getting ready for the new school year, according to a survey by Myvesta, a nonprofit financial services organization. That number is down slightly from last year's average, which stood at $5,423.
"Back-to-school shopping is part of the 'trifecta' of debt," said Steve Rhode, president and co-founder of Myvesta. "Back-to-school, summer vacation and holiday spending are the three, key spending points in the year. Surprisingly, back-to-school is the most expensive." According to Myvesta surveys, average spending for summer vacations in 2000 was $3,155; average spending for the winter holidays in 2000 was $1,220.
"School shopping is more than just pens and paper," Rhode added. "People need to be honest with themselves about the full range of expenses, including computers, clothing, transportation, sporting equipment and more." Sixty percent of Americans plan to buy back-to-school items.
During the August 2001 survey, 1,002 people were asked about back-to-school purchases for themselves, members of their families and others. Their average spending for each of seven categories in 2001 and 2000 included:
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Electronics: $532 in 2001, $591 in 2000 |
Dorm Room Supplies: $449 in 2001, $181 in 2000 |
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Clothing: $516 in 2001, $540 in 2000 |
Desk Supplies: $156 in 2001, $142 in 2000 |
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Fees: $2,466 in 2001, $2,457 in 2000 |
Transportation: $1,142 in 2001, $1,610 in 2000 |
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Sporting Activities: $254 in 2001, $392 in 2000 |
Total for back-to-school: $5,033 in 2001, $5,423 in 2000 |
"Don't let back-to-school expenses sneak up on you," Rhode cautioned. "Too many people go shopping without thinking of the total cost. Using a credit card adds convenience and security to the transaction, but people need to be prepared to pay off the bill in a reasonable amount of time or the debts will skyrocket."
For example, if a shopper charges their $5,033 in school purchases at an interest rate of 17.99 percent and pays only the minimum each month, he or she will end up spending $22,757 for the items. In addition, the debt will take more than 54 years to pay off.
"Get your back-to-school bills paid off as soon as possible," Rhode said. "Don't forget. The expensive, winter holidays are just around the corner."
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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.
