College students still plan to spend

09.03.09
By Timothy Jones

With many students heading back to college for the first time since the economy took a turn for the worse, many parents believe their children will cut down on spending and stay out of credit card debt, but a new report finds that the incoming class of 2013 doesn't plan to cut back on spending habits.

A recent study from media and marketing company Alloy, performed by Harris Interactive, finds that this year's group of college students has more than $250 billion in spending power with $56 billion in discretionary spending.

This discretionary spending is up 37 percent over 2005 figures and Dana Markow at Harris Interactive says it marks a level of consumer confidence in the college population.

"This year's survey offers an important view of the impact a challenging economic period has had on this ever-growing college market," she said. "Today's college students are showing more care when it comes to their purchasing decisions; however, they continue to spend their hard earned discretionary dollars and a large number express optimism for a brighter economic future."

But it might not all be spend-first-worry-later for this group of college students. The report also finds that 40 percent of students say they are saving more than they have in the past and one-quarter say they are getting a job for the first time, working more hours at their place of employment or looking for a second position.

Still, an increase in discretionary spending might lead to credit card debt for many college students before they get their first job. According to numbers from Sallie Mae, the average graduating senior had $4,100 in credit card debt in 2008 - up from $2,900 in 2004.

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Students still plan to spend a lot of money despite the warnings of credit card debt