“With a plan in place, parents are empowered to make the right decisions in what can often be a significant shopping season,” said Tom O’Donnell, general manager, Chase Card Services. “And there is no better moment to teach kids about planning and spending wisely than when the money is being spent on them.”
The Chase Slate-U.S. News Consumer Monitor, fielded by Ipsos Public Affairs, surveyed 1,080 adults nationwide about their families’ back-to-school spending plans and general economic outlook this fall.
2010: Bigger Shopping Lists, Tighter Wallets
As school-aged children bring home shopping lists for school supplies and outside-the-classroom expenses, many parents are tightening their belts wherever possible. Of the 38 percent of Americans who have set a budget for back-to-school shopping this year, 41 percent said their budgets are smaller this year as compared to 2009.
In addition, 34 percent of Americans reported that they are only planning to buy their children necessary school supplies, cutting back on wish lists in favor of must-have purchases only. In an effort to try to spend less on back-to-school purchases, Americans are also considering the following tactics: shopping at discount stores (59 percent), reusing school-related supplies (36 percent), and clipping coupons (24 percent).
While some families overall expect to spend more on back-to-school shopping this summer than last year (35 percent), many families expect to spend less on school preparations. The school-related expenses Americans are most likely to focus on when trying to reduce costs this year include clothing, supplies, tuition, and weekend and extracurricular activities.
Parents Scrambling as School Kicks Off
Although most American schools are heading back in session within the next two weeks, the Chase Slate-U.S. News Consumer Monitor found that 55 percent of families haven’t even started their back-to-school shopping. Among those who have started, 60 percent haven’t yet finished crossing items off their lists. Back-to-school shoppers with younger children - in either middle or elementary school - are much more likely to have started than those with older children (65 percent vs. 47 percent). Many factors appear to be contributing to this trend, including:
•“Necessary, but not fun”: While 18 percent of parents “do not enjoy back-to-school shopping,” 50 percent classify it as “just something I have to do.”
•“Money’s tight”: 30 percent of back-to-school shoppers indicated their personal finances are at bottom and not getting any better or worse, while 26 percent said they have not yet bottomed out and will continue to get worse.
•“Can be stressful”: Parents were asked to rate the level of stress that accompanies back-to-school shopping (on a scale of one to 10 from most stressful to least stressful), and 15 percent said very stressful (answering 1-3), while 38 percent said moderately stressful (answering 4-7).
Families’ Economic Pessimism Endures
In addition to highlighting school spending trends, the Chase Slate-U.S. News Consumer Monitor revealed continued pessimism about the economy and personal finances during the back-to-school season. Of Americans surveyed, 45 percent believe that the economy has not yet bottomed out and will still get worse. Regarding financial management, 62 percent of Americans reported that they are completely or mostly in control of their personal finances, while 36 percent believe they are somewhat or not at all in control of their finances.
Among those surveyed, female back-to-school shoppers are more optimistic than men about the economy (41 percent vs. 26 percent). Women are also better prepared and in control (68 percent vs. 55 percent), and are looking to spend less than their male counterparts (29 percent vs. 15 percent).
