Sunday, July 22, 2007

Back-to-school pricetag: $18.4B

Back to school price merchandise is estimated to rise to 18.4 billion dollars this summer from a 2006 price of 17.6 billion. A large contributor to the price increase lies largely in the new and advanced technologies. New computers, music players, and cell phones are contributing a lot to the increase. Families with student are expected to spend an increase of 6.9% more on school supplies and 13% more on new gadgets year than in 2006 according to the National Retail Federation’s back to school survey.

Not only is electronics expected to rise, but also shoes and clothing sales are expected to increase this year. Also, because of the up-rise in the price of gasoline many families are planning to finish there back to school shopping on the net. This number is up 15.2% from last year. Many families are planning to shop at discount store rather then specialty store or department stores.

Throughout time, electronics have turned from luxuries to necessities for everyone. Parents are also investing a lot of money into learning tools such as laptops, educational software, printers, and books to help support their children’s learning experiences. The one thing that this article does not talk about is the amount of money that it costs to go to school. It seems to me that they price keeps increasing, but is there a point that the price of college has become overwhelming that kids and there parents will not be able to afford it. The next time you are begging your parents for that new iPod or new cell phone take a second and think about if you really need new apple iPhone or the new 80 GB video iPod or if you could settle for something less.


Greg Delemeester said...

[This comment is from Chunzi]

My opinion is the purchase of school supplies and new gadgets depends on the personal choice. The school supplies such as laptops, educational soft wares, painters and books are must costs as the education would not be completed without these things.
The gadgets such as iPhone or iPod are not must purchase for school as these things are for entertainment. May be you can have one or two these fancy little things, but if you want all the new technology gadgets, you’d better save some money for your parents or you can buy them by the money you earn by yourself.

Jenna Zdravecky said...

I can't believe how many things are becoming "necessities" for the generation that is just now in middle school. It is hard for me to believe that just 10 years ago I was in the same shoes of my little sister, but things are now so different--every single on of her friends has a cell phone (even though none of them drive, obviously~they're 11, and they are almost always escorted by their parents because someone needs to take them where they are going). Not to mention the fact that my sister absolutely refuses the "cheap" folders (10 cents, millions of colors), book covers (paper bags from the grocery store--but then again those aren't as common as they used to be), and composition notebooks (which is funny because all of these things suddenly :come back into style: when you're a poor college kid) that I was perfectly okay with as a kid. My sister is going into seventh grade and with the amount of money my mom has spent you think she had been "dorm" shopping instead.

Heather Paige said...

I agree, it's very scary to watch kids a decade younger than us and what they feel is essential to their everyday life. It makes me feel like an old lady saying "oh, kids these days, they don't know what they've got." My boyfriend's sister is going on 14 this month and sounds just like Jenna's sister. Although I mentioned in another comment (on 16-19 year olds studying in the summer instead of working) that high school kids may be becoming better economists, this post makes me think the opposite. 10-15 year olds don't seem to understand the opportunity cost of the things they throw fits to have. That essential iPhone may provide entertainment but this could be at the cost of the family keeping the heat barely on in the winter months.