Capital One’s Annual Back-to-School Shopping Survey Finds Current Economic Environment, School Budget Cuts Will Impact Back-to-School Spending This Year.
Survey finds increase in number of parents and teens discussing
back-to-school budgeting, yet many teens still report limited practical
money management experience
MCLEAN, Va., July 31, 2012 /PRNewswire/ — As back-to-school
shopping season kicks into full swing, a new survey from Capital One
Financial Corporation (
: COF) finds that current economic conditions
and school budget cuts are having a significant impact on back-to-school
shopping plans, and that more parents and teens are planning ahead and
talking seriously about back-to-school shopping and budgets.
In Capital One’s 12th annual back-to-school shopping survey, 59
percent of parents say the amount of money they plan to spend on
back-to-school shopping this year is impacted by current economic
concerns, and 42 percent of parents say their spending will be impacted
by school budget cuts.
This is causing parents to plan ahead and think smartly about their
back-to-school shopping plans. The majority of parents report looking
for deals on back to school purchases, with 49 percent planning to do
the majority of their back-to-school shopping at discount retailers and
70 percent of parents reporting that they are shopping throughout the
summer and starting early to score deals. More often than not, this also
means getting their teens involved.
“Parents are feeling the effects of the economy and school
budget cuts. As more parents are being asked to contribute basic
classroom supplies, families are having to plan ahead and re-think their
back-to-school shopping habits,” said Shelley Solheim, Director of
Financial Education at Capital One. “The
A hopeful or comforting prospect in the midst of difficulty.
[From the proverb "Every cloud has a silver lining".
parents are talking more with their kids about shopping expectations,
priorities and needs versus wants. These are sometimes tough
conversations to have-for both parents and teens-but extremely important
as many teens are looking to their parents for information on money
management topics like budgeting and saving.”
Nearly 70 percent of parents and 84 percent of teens say
they’ve discussed needs versus wants for back-to-school items.
About half of parents and teens say they’ve created a
back-to-school shopping budget, while 64 percent of parents and 71
percent of teens say they’ve made a list of back-to-school items
together. These conversations are taking place at a much higher rate
than in 2011. Last year, less than one-third of parents and teens
reported making a shopping list or back-to-school budget.
Both parents and teens identified clothing as their top
back-to-school priority, followed closely by traditional supplies, such
as notebooks, pens and backpacks.
Teens Lack Practical Money Management Experience
The survey results also suggest that parents are missing
opportunities to talk to their teens about money on a regular basis,
beyond back-to-school time -only 33 percent of parents say they talk to
their kids about money more than once a week.
Although teens report high levels of confidence in their money
management skills-76 percent gave themselves an “A” or
“B” grade for their current knowledge of financial
responsibility-teens have limited practical money management experience.
Half (49 percent) of teens haven’t worked with their parents to
develop a budget for saving or spending their money, even though 61
percent report receiving an allowance. Teens also lack an array of other
money management experiences:
* 81 percent of teens report that they don’t have a checking
* Only 33 percent of teens have a summer job
* 9 out of 10 teens say they are not involved in paying household
bills or managing the household budget
* 85 percent of teens don’t use any online tools to help manage
The good news is that teens have an appetite for financial
education, with half (52 percent) of teens saying they want to learn
more about how to manage their money. Teens are particularly interested
in learning more about basic personal finance topics such as budgeting
(80 percent), saving (75 percent), checking accounts (68 percent) and
investing (67 percent).
Teaching Teens Personal Finance Skills
Capital One offers the following tips to help parents take advantage
of the back-to-school shopping season and other opportunities to talk to
their teens about money management skills:
* Make back-to-school shopping a family affair. If you’re part
of the 21 percent who haven’t talked to your kids about
back-to-school shopping at all, sit down together and make a list of
what your teen already has, what they need and how much you can
* Do your homework. Make back-to-school shopping something you do
together and use it as an opportunity to teach your teen how to
comparison shop. You can also encourage your teen to look at prices
online to see how they fit with their budget before you head to the
numbers together – establish a budget. Consider having your
teen contribute money to purchasing school supplies and other
necessities throughout the year. Discuss how much they may contribute
and work it into your budget. Once you set a budget, stick to it.
* Help set goals and steps to achieve them. The next time your teen
gets a windfall-from a gift, allowance or part-time job-ask them if they
have a plan for their money. If not, talk about things they might want
to save for and how they can create their own budget.
* Participate in the day-to-day. Teach your kids how to write
checks, balance a budget and the importance of paying bills on time the
next time you pay monthly bills. This gives teens an idea of how much
utilities and other necessities, like auto insurance, will cost them as
For more free tips and tools to talk with your kids about money,
For parents looking for financial products designed for young
USA offers MONEY, a teen checking account with no
fees and no minimum balance required. It provides a
card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser’s checking account. They can also be used at automated teller machines for withdrawing cash from the user’s checking account.
both teens and their parents receive text alerts each time a transaction
is made. Capital One’s Journey Student Rewards Card helps young
adults build credit responsibly by offering an additional 25 percent
bonus on the cash earned each month for paying their bills on time. It
also offers an interactive online tool that helps them keep track of
their credit history.
Braun Research was engaged to conduct 1,024 interviews with 510
parents of teenagers age 11-17 and 514 teenagers age 11 to 17 across the
officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world’s third largest country in population and the fourth largest country in area.
. Surveys were conducted by telephone from July 6th through
July 9th, 2012. The margin of error for the interview is plus or minus
3.34 percentage points. Interviews were monitored at random. Sampling
for this study was conducted across the United States using a national
probability sample of all exchanges and area codes of households with
someone age 11-17 living there. All interviews were conducted using a
system. Statistical weights
were designed from
United States Census Bureau
) is a part of the United States Department of Commerce.
About Capital One Capital One Financial Corporation
(http://www.capitalone.com/) is a financial holding company whose
subsidiaries, which include Capital One, N.A., Capital One Bank (USA),
N. A., and ING Bank, fsb, had $213.9 billion in deposits and $296.6
billion in total assets outstanding as of June 30, 2012. Headquartered
, Capital One and ING DIRECT offer a broad spectrum
of financial products and services to consumers, small businesses and
commercial clients through a variety of channels. Capital One, N.A. has
approximately 1,000 branch locations primarily in
Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
, New Jersey,
, state in the S central United States. It is bounded by Mississippi, with the Mississippi R.
, Maryland, Virginia and the
District of Columbia
federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States).
Fortune 500 company, Capital One trades on the
New York Stock Exchange
under the symbol “COF” and is included in the S&P 100
SOURCE Capital One