by Doug Desjardins
Most forecasts call for an increase in back-to-school spending this summer but analysts also expect consumers to be more budget-conscious than usual as they search for bargains.
Retailers are upbeat about a National Retail Federation (NFR) study released in July that predicts the average family will spend $606 on back-to-school products this year – up 10 percent from 2009 – but that doesn’t mean they’ll be spending freely. A study from Capital One notes that the recession has parents teaching children about the importance of budgeting and spending wisely. 
The study found that 24 percent of parents made their back-to-school shopping list with their children and made it with a set budget in mind. “Back-to-school shopping season is often overlooked as a financial education opportunity, but it’s an optimal time for parents to teach teens about budgets and smart spending in a real-world situation,” said Shelley Solhiem, director of financial education for Capital One.
The same survey found that teens are ready to listen, with 53% saying they want to learn how to manage their money and would prefer to learn from their parents rather than from friends or from a book.
Parents are also using more high-tech methods to hunt for bargains and discounts this year. A survey by research firm Deloitte found that 29 percent of shoppers plan to use mobile phones to check prices and search for discounts, coupons and other sales information. About the same number say they’ll use social networking sites like Facebook to make price comparisons and search for bargains.
“Consumers are increasingly on the phone, online and on-the-go,” said Alison Paul, retail sector leader for Deloitte. “Companies that can engage the consumer through mobile applications, text alerts and video content may win an increased share of shoppers’ back-to-school budgets.”
Though consumer spending has increased this year, most consumers are still wary of living beyond their means or are no longer able to. “Three years ago, people were drawing off a home-equity line of credit to support their lifestyles,” said Steve Ferrara, a partner with consulting firm BDO USA. “Now, many people are in a much more difficult financial condition and stores are being more creative at trying to get shoppers to come in.”
Many retailers are promoting affordable but stylish apparel lines this summer to lure shoppers into stores. Macy’s is pushing its new `Material Girl’ fashion line created by Madonna and her 13-year-old daughter Lourdes. The collection, which puts a modern twist on 1980s fashions, is priced from $12 to $40.
J.C. Penney is opting for its Supergirl by Nastia line designed for 8-to-12 year old girls. The line from Olympic gymnast Nastia Liukin is priced from $20 to $38. And Kmart is offering even deeper discounts on its Dream out Loud collection from Selena Gomez, a full line of girls' fashions priced under $24.
Resources
Capital One’s Annual Back-to-School Shopping Survey Reveals Gaps in Budgeting
Consumers Use Smartphones, Go Online for Extra Spending This Year
COUPON TIME
Going back to school on a budget? Visit our Back to School Coupons page and Student Discount page for savings galore.
