MCLEAN, Va., Aug. 15, 2011 /PRNewswire/ --As
back-to-school shopping season kicks into full swing, a new survey
from Capital One Financial Corporation (NYSE: COF) finds that
parents and teenagers mostly agree on which items they need to buy
for the new school year, but they have very different expectations
on how much they'll be spending on back-to-school purchases.
In Capital One's 11th annual back-to-school shopping survey,
both teens and parents surveyed ranked traditional supplies such as
notebooks and pencils, clothes and backpacks/totes as their top
three purchases, but many teens polled underestimated the cost of
those items. Only 41 percent of teens expect their parents will
spend more than $100 on
back-to-school shopping, compared to 68 percent of parents who
expect to spend over $100.
Capital One's survey also found that 43 percent of teens plan to
contribute their own money to back-to-school spending, but only 15
percent of parents surveyed expect their child to help pay for the
bill. These survey results suggest that many parents are missing
opportunities to help their teens learn about important money
management concepts like budgeting.
"This year's survey found that teens and parents are not always
on the same page when it comes to expectations about back-to-school
budgets and spending," said Shelley
Solheim, Director of Financial Education at Capital One.
"The back-to-school shopping season is often overlooked as an
opportunity for parents and teens to talk about financial education
principles and concepts, but it is an ideal time for teens to play
a role in the household budgeting process and learn an important
money management lesson."
Teens May Not be Listening
The survey results suggest that parents' efforts to talk to
their teens about spending and budgeting may need to be reinforced
more than once. Over half (57%) of parents surveyed say that they
have discussed the difference between needs and wants with their
teen, and 28 percent of parents say they have created a
back-to-school budget with their child. Yet only one-quarter (26%)
of teens report that they have discussed the difference between
needs and wants with their parents, and only 15 percent of teens
say they have created a back-to-school budget with their
parents.
Overall, teens report limited practical experience managing
money. Ninety-three percent of teens surveyed say they are not
involved in paying household bills or managing the household
budget, and almost half (46%) of teens do not know how to create a
budget.
The good news is that teens have an appetite for financial
literacy information, with over half (55%) of teens surveyed saying
that they want to learn more about how to manage their money. Teens
are particularly interested in learning about investing (88%),
saving (87%), budgeting (82%), checking accounts (80%) and
financing for big purchases like a car or a home (79%).
Teaching Teens Personal Finance Skills
To help young people and their parents discuss personal
financial planning, Capital One and Junior Achievement have created
a new innovative online financial literacy simulation, JA
Finance Park Virtual, which
gives students a glimpse of what it takes to be successful in the
21st century global marketplace. Through the simulation, available
online at financepark.ja.org, students design personalized avatars
and are assigned a randomly-generated life-scenario, including a
fictional job, age, income, educational background and family.
Based on that scenario, students are then tasked with meeting
real-life needs such as successfully developing a budget,
maintaining a household and pursuing a career.
In addition, Capital One offers the following tips to help
parents take advantage of the back-to-school shopping season to
teach their teens good money management skills:
- Make back-to-school shopping a family affair - It's a
great opportunity for teens to learn valuable hands-on lessons from
their parents.
- Do your homework - Talk to teachers in advance and try
to get a list of required school supplies 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.
- Consider having your child contribute – Capital One's
survey suggests that many teens are prepared to help pay for
back-to-school shopping. Discuss how much they may contribute and
work it into the budget you develop.
- 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 and use coupons when possible. Even if
you don't plan to shop online, encourage your teen to look at
prices online to see how they fit with the budget before you head
to the store.
Survey Methodology
Braun Research was engaged to conduct 1163 interviews in 653
households with 653 parents of teenagers' ages 11 through 17 years
old and 510 teenagers ages 11-17 years old across the United States. Surveys were conducted by
telephone from June 18-30, 2011. The
margin of error for the interviewing is +/- 3.8 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 between the ages of 11-17 living there.
All interviews were conducted using a computer assisted telephone
interviewing system. Statistical weights were designed from United
States Census Bureau statistics.
About Capital One
Capital One Financial Corporation (http://www.capitalone.com/)
is a financial holding company whose subsidiaries, which include
Capital One, N.A. and Capital One Bank (USA), N. A., had $126.1
billion in deposits and $199.8
billion in total assets outstanding as of June 30, 2011. Headquartered in McLean, Virginia, Capital One offers a broad
spectrum of financial products and services to consumers, small
businesses and commercial clients. Capital One, N.A. has
approximately 1,000 branch locations primarily in New York, New
Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia. A Fortune 500 company,
Capital One trades on the New York Stock Exchange under the symbol
"COF" and is included in the S&P 100 index.
SOURCE Capital One