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Back to School Season is Around the Corner, Survey Finds Parents Need to Talk Dollars and Cents
When It Comes to Back to School Spending, Teen Girls Are Ahead of the Financial Curve
Capital One Financial's fifth annual back-to-school shopping survey shows that parents are missing the perfect opportunity to talk to their kids about making the most of their shopping dollars. This year's survey finds that more than 83 percent of high school and middle school students expect their parents to join them on back- to-school shopping trips, but an overwhelming 91 percent say their parents have not taken the time to discuss their back-to-school finances with them. The survey also finds that nearly 60 percent of parents will spend more than $125 per child on back to school costs this year, yet only a quarter of them are taking the time to discuss back to school budgeting.
For the first time, this year's survey found surprising differences in teen girls' and boys' knowledge of money matters. Findings show that girls are more accurate in judging how much their parents will spend on back to school items -- 33 percent of girls responded more than $125 compared to just 25 percent of boys. When it comes to contributing to back to school necessities, more girls (53 percent) reported that they will contribute money to back to school shopping compared to only 48 percent of boys.
"These survey findings prove that parents are missing an opportunity to give their teens one of their first experiences managing money. Developing a budget with their parents and putting the skills to use while shopping allows teens to test their financial judgment skills. It also better prepares them for financial decision-making as an adult," says Diana Don Colby, Director of Financial Education at Capital One.
Does Money Grow on Trees?
When it comes to sharing the cost of back to school shopping, this year's study finds that 50 percent of teens plan to contribute to the bill, with almost 70 percent responding that the money will come from job earnings. Parents plan to pay for back-to-school purchases predominantly with cash (75%), while 30 percent plan to pay using credit.
"More and more young people are earning their own income and wanting to make their own financial decisions. This makes it even more important for them to develop good money management skills early on," adds Don Colby. "By contributing their own funds to back-to-school costs, students have a vested interest in their purchases -- purchases that will range between 'needs' and 'wants.'"
What are they buying?
Traditional school supplies such as notebooks, backpacks, pens and pencils, and clothes top back-to-school shopping lists this fall. Similar to last year, electronic items are not in demand. Less than five percent of parents and only two percent of teens expect to shop for a new computer. In addition, four percent of parents expect to purchase PDAs for their teens.
Financial Education -- What Parents and Teens Can Do To Shop Smart
Capital One offers parents these tips for working with their child to develop good money management skills.
* Make back to school shopping a family affair: It's a great
opportunity for kids to learn valuable hands-on lessons from their
parents.
* Do your homework: Talk to teachers in advance and try to get a list
of the required school supplies needed so you can buy in advance
(maybe even on sale).
* Crunch numbers together -- establish a budget: Determine how much
you're able to spend in advance and stick to the amount.
* Make a list: Prepare your shopping list in advance. Try to
distinguish between "needs" and "wants" on the list and prioritize the
needs first!
* Shop smart: Make sure you shop around for the best price and the best
quality. You want purchases to last.
* Get more tips (if you need them): Capital One offers a number of
resources on budgeting and savings -- and has partnered with national
consumer organization Consumer Action to create a full guide for
parents called Talking to Teens about Money available at money-wise.org .
More on Back-to-School
here.
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