Back to school or back to spending?

07.21.09
By Lewis Green

Back-to-school season generally means a time to break out the credit cards and stock up on basics that kids can use all year long.

But in this uncertain economy - with worries about credit card debt and job security the order of the day - are American consumers really prepared to spend?

According to a new survey by Deloitte, this year fewer people anticipate cutting back on spending for back-to-school items - although financial worries remain front and center.

Some 64 percent of people surveyed said they plan to spend less, down from 71 percent last year. Meanwhile, the proportion of consumers who will cut back by more than $100 has fallen from 48 percent to 43 percent within the same time frame.

Still, it's clear that the effects of the economic downturn are weighing on U.S. families when it comes to attitudes about money and managing debt.

A total of 22 percent of respondents said someone in their household has lost their job, while 17 percent are worried about layoffs.

These fears may be noted in people's choice of back-to-school retailers. Nine out of ten consumers indicated they will be heading to discount shops for their school needs, with 40 percent planning to visit dollar stores.

"Consumers may be casting a glimmer of hope for retailers, but the survey results indicate that value will top their shopping lists this year," commented Stacy Janiak of Deloitte. "Consumers still plan to stretch their dollars, telling us that their shopping remains constrained."

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Fewer people anticipate cutting back on spending for back-to-school items.