Do the math, consumers are spending less on back-to-school

According to the annual Myvesta Back-to-School Survey conducted by Myvesta.org, a nonprofit financial management organization, Americans plan to spend $960 less this year on back-to-school purchases.

These results continue the downward trend seen over the last three years. The average shopper plans to spend $3,184 this year, down 23 percent from $4,144 in 2002, 36.5 percent from $5,033 in 2001 and 41 percent from $5,423 in 2000. Almost 43 percent of those polled plan on spending under $1,000 on their back-to-school purchases in 2003.

"Economic uncertainty, unemployment and worries about terrorism and war are all playing roles in yet another decline in back-to-school shopping," said Steve Rhode, president and co-founder of Myvesta.org. "People don’t want to part with their hard-earned cash very easily these days, which isn’t the best news for retailers hoping for big back-to-school numbers."

The Myvesta.org Back-to-School Survey was conducted August 1-3 in a random telephone poll of 1,000 adult Americans. Each respondent was asked about their back-to-school purchases for themselves, family members and others.

For the second straight year the most significant drop in back-to-school spending was in dorm room supplies. Shoppers plan on spending 42 percent less this year on items for dorm living. Other significant changes in spending include an 18 percent drop in spending on electronics, a 32 percent drop in fees, a 28 percent drop in sporting and extracurricular activities and a 31 percent drop in transportation costs. Other categories remained relatively unchanged.

The survey showed that more than half of American adults (55 percent) will head to the mall for some back-to-school shopping.

"Even though people are planning on spending less this year on their back-to-school purchases, they still need to be careful about how much they are spending," Rhode said. "Back-to-school shopping is the most expensive time of the year for many families, even more expensive than vacation spending and holiday shopping combined. People often don’t realize how much they will spend on back-to-school and they fail to plan accordingly."

"Like any other major expense, good planning can go a long way in stretching your back-to-school dollars further," Rhode said. "A simple act like buying a Sunday newspaper and checking out who has the best deals can save you big bucks.

Spreading your shopping out over a few weeks can also lower your back-to-school bills. People often spend more when they are shopping at the last minute and in a rush to get things done."