A Capital One Financial Corporation survey found that about 59% of parents say the amount of money they plan to spend on back-to-school shopping this year is impacted by current economic concerns while 42% of parents say their spending will be impacted by school budget cuts.
"Parents are feeling the effects of the economy and school budget cuts," said Shelley Solheim, director of financial education at Capital One. "As more parents are being asked to contribute basic classroom supplies, families are having to plan ahead and re-think their back-to-school shopping habits."
While only 33% of parents say they talk to their kids about money more than once a week, a whopping 49% are planning to shop for back-to-school items at discount retailers while 70% of parents report they are shopping throughout the summer and starting early to score deals.
"The silver lining is that parents are talking more with their kids about shopping expectations, priorities and needs versus wants," said Solheim. "These are sometimes tough conversations to have for both parents and teens but extremely important as many teens are looking to their parents for information on money management topics like budgeting and saving."
The good news is that teens have an appetite for financial education with 52% saying they want to learn more about how to manage their money. About 80% of teens are particularly interested in learning more about basic personal finance topics such as budgeting compared to 67% who want to learn about investing.
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