Debit Card Use For Back-to-School Spending Doubles
MasterCard reports survey results finding that nearly three out of four parents (74 percent) are expected to rely on the convenience and flexibility of payment cards for back-to-school shopping. The annual MasterCard Back to School Spending Index found that 58 percent of parents of U.S. students college age or younger plan to use debit cards for back-to-school purchases, increasing from 26 percent in 2005. [Editor's note: Given MasterCard's smaller share of the US debit card market, such an increase in preferences for debit card-based purchasing would appear to primarily advantage Visa - although "a rising tide does lift all boats."]
As parents leverage payment cards to manage spending, they'll also use this opportunity to discuss financial management with their children. In fact, more than half of parents (53 percent) plan to leverage back-to-school shopping to talk to their children about budgeting and spending wisely.
"Parents have come to rely on the convenience, flexibility and security that payment cards provide when paying for purchases particularly during the busy back-to-school season," said, Patricia Preston, senior vice president, MasterCard Worldwide. "As the survey demonstrates, debit cards have increasingly become the chosen tool to manage family spending while closely tracking expenses."
The MasterCard Back to School Spending Index survey revealed further conclusions about parents' back-to-school spending habits:
Clothing is by far the most popular item on back-to-school shopping lists. Two-thirds (64 percent) claimed that clothing will be their highest expense, followed by books (13 percent) and supplies (9 percent). Understandably, the most sought-after shopping destinations for parents are discount stores, with more than 86 percent planning to purchase back-to-school items from a discounter. Consumers will also head to office supply stores (46 percent), department stores (38 percent), specialty and apparel retailers (20 percent), and drug stores (16 percent).
- Parents of U.S. students college age and younger expect to spend, on average, $424 this year on back-to-school items. Sixteen percent anticipate 2006 back-to-school expenses for books, clothes, and supplies to exceed $500.
- Three out of four (75 percent) parents anticipate spending the same amount (40 percent) or more (35 percent) this year as compared to last.
- Eighty percent of parents said their child or children will accompany them on shopping trips for back-to-school items. Nine percent of parents said they will go alone, while 11 percent of parents said their children will do the shopping alone.
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