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Features > Dollars and Sense |
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The Economics of School Supplies
Parents Can Use Back-to-School Shopping to Teach Budgeting Skills |
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(ARA) - As summer draws to a close, parents and teens alike will be hitting the stores for back-to-school shopping. From paper and pens to notebooks and backpacks, there's no shortage of items to spend money on.
This annual rite of fall is the perfect opportunity for parents to teach their kids about the fundamentals of budgeting. "With teens making budgeting and purchasing decisions alongside their parents, the act of back-to-school shopping helps build openness with money issues," says Diana Don, Director of Financial Education at Capital One.
According to Capital One's second annual back-to-school supply survey, parents will spend an average of $97 on school supplies this year -- down from $118 last year. Although teens plan to contribute an additional $45 to the overall budget, 44 percent of parents still feel pressure to spend in excess of the family's back-to-school budget.
Luckily for parents, 77 percent of teens in the survey say they just buy the basic things they need for school; however, 16 percent say they want to be trendsetters, having all the newest, coolest items. Most in demand this year are frosted three-ring binders, gel roller pens, "The Osbournes" backpacks, neon "Dr. Grip" pens, jelly pens and sparkle pencils.
"Building the budget together offers an opportunity for parents to encourage their teen to contribute their own money to help fill the gap between the 'I needs' and the 'I wants,'" says Dara Duguay, executive director of the Jump$tart Coalition for Personal Financial Literacy, a nonprofit group dedicated to raising financial literacy among young adults.
Nearly all teenagers in the survey (93 percent) said they learn about money management from their family at home. While more than half the teens surveyed have a savings account, only about one in nine have a checking account. Only a small number of teens indicated that they have ever taken a complete course in economics or money management.
"The average high-school graduate lacks basic skills in personal finance management, from managing a budget to balancing a checkbook," says Duguay. "It is important for parents to encourage their teens to enroll in Personal Finance courses offered at school as well as supplement their teen's curriculum with day-to-day lessons in saving, budgeting and spending, to ensure their financial success."
Courtesy of ARA Content
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