Students and Parents Spend Big on College

Students and their parents are expected to spend a combined average of $956.93 on back-to-college merchandise this year, which surpasses last year’s $880.52, the National Retail Federation reported in its 2007 Consumer Intentions and Actions Survey.

The survey, conducted by BIGresearch in early August 2007, found students and families will spend an estimated $47.3 billion in preparation for college. Student and parent spending on clothing and accessories, laptops, digital cameras and cell phones is expected to increase this year, with electronics in general remaining a big seller.

Spending on clothing and accessories is expected to increase $7.41 billion from last year’s $5.78 billion.

Electronic purchases are expected to reach a total of $12.8 billion, while other essentials such as shoes will reach up to $2.96 billion. School supplies such as notebooks, folder and pencils could get up to $3.14 billion.

According to the study, more than $15 billion will be spent on textbooks, which are one of the more vital expenses for college students. More trendy purchases, such as dorm and apartment furnishings, will reach $5.43 billion, which is an increase from last year’s $3.82 billion. The age group most likely to spend in this category is young adults aged 18 to 24, spending an average of $158.61.

College spending this year will be spread across a number of retail categories. Approximately 41.8 percent of students and their families will shop at department stores, 35.6 percent at office supply stores, 34.3 percent at clothing stores, and 20.9 percent at electronics stores.

One third of consumers plan to shop online for back-to-college supplies, according to the survey findings. Among college-aged students, freshmen are expected to spend the most, with an expected $1,193.60 in total spending. This could be because they have extra money from high school graduation gifts. Sophomores are expected to spend $748.29, which is the least amount of all the age groups.

Housing choices also determine how much college students will spend on living expenses. Students living on-campus are expected to spend the most, with a total of $1,529.45, nearly double what students living at home will spend ($774.86) and more than what students living off-campus will spend ($1,161.98).

For more information, please visit the National Retail Federations’ press room.

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