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Wednesday, August 23, 2006
Back To School: Spending is in style this season
Many students adding electronics to their must-haves
Sure, there are lingering concerns about gas prices and the economy, but Ann Smock of Anacortes had no intention of scaling down back-to-school shopping for her teenage daughter.
"We will spend about the same this year, but Grandma is helping us," Smock said while her daughter and niece were trying on clothes at Romy Boutique in Northgate Mall. "We'll probably spend $200 to $300 per girl."
If that sounds like a lot, think again. The average household this year will spend about $527 on back-to-school items, ranging from jeans to cell phones, according to the Washington, D.C.-based National Retail Federation, a trade association that tracks consumer spending.
Cell phones?
Once a luxury, cell phones are common in schools, and those items along with Mp3 players and calculators are trendy for kids. In fact, additional electronics purchases are expected to push spending this year up nearly 19 percent from a year ago, according to the retail federation. Many retailers consider back-to-school shopping the second-largest "holiday" season next to Christmas.
"There is a difference between day-to-day spending and back-to-school spending," said Scott Krugman, spokesman for the retail federation. "When you are talking about people spending on their kids, it's necessity spending and they may put off other purchases."
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Total back-to-school spending across the country is estimated to hit $17.6 billion, up from $13.4 billion last year, when spending actually declined from the previous year, the retail federation said.
The organization's survey found that consumers in the West were planning to spend about $479 per home, up $70 from last year. The biggest spenders were in the South ($545 per household), while Northeast consumers ($456 per household) were cutting back.
Tammie English of Seattle said she's getting a double dose of spending on electronics as the nursing school student bought a computer jump drive for herself and for her 14-year-old son, Patrick. Spending for her sons, including 9-year-old Nathan, will reach about $500 total, she said.
"We are spending a bit more this year," English said. "But it seems like there are more sales."
Mary Stimac of Seattle said she's willing to spend up to $400 on school clothes and supplies for her 16-year-old daughter, Kathryn Clark, but it's up to the high school junior to buy any electronics.
Stimac also said her family tries to buy school supplies in bulk to save money.
Clark said she saved up and bought an MP3 player in the spring and used it to record interviews for a project on the civil rights movement at The Center School in Seattle.
While many families look for sales, Luna Aguila, manager of Aprie in Northgate Mall, said some shoppers haven't balked at spending $47 for a nice shirt, $119 for a pair of Odyn jeans or $60 for a pair of wedge shoes.
"It should be really good this year, and I don't see that much apprehension," Aguila said. "People don't seem to have a problem with higher-priced items."
But Susan Higgins of Seattle said that even though she has a 9-year-old son and 13-year-old daughter, she doesn't get caught up in the back-to-school frenzy. In fact, she rarely even buys clothes this time of year.
"We don't need things just because people say we do," Higgins said. "We buy what we need, and I buy things big so they last."
To help consumers with back-to-school spending, Columbus, Ohio-based Huntington Bank has devised a "backpack index" to give parents an idea of how much they should set aside for school supplies.
While it's too late to save for this year, a bank spokeswoman said it's not too early to begin thinking about saving money after the first of the year.
Huntington Bank, which includes music rentals, calculators and SAT fees in its calculations, said parents should expect to pay $308 in school costs for an elementary school child, $439 for a middle-school student and $670 for a high-school kid this year.
The bank's figures are higher than the retail federation's because Huntington estimates costs for an entire school year.
"Even if you haven't saved up to this point, figure out what you can spend and stick to that budget," said Jeri Grier-Ball, a bank spokeswoman.
Jessica Otis, a senior at Mount Vernon High School, said she set aside $300 of her money for back-to-school shopping, and she also will use $400 from her parents and grandparents. All of it will go toward clothes.
"I'm a girl. ... I would spend more if I had more," she said with a laugh.
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