The recession has caused Canadians from all over the country to rethink their spending habits. As touched on by the Synergy Merchant Services blog recently, this is the time of year where students especially, are concerned about their budgets as the new school year quickly approaches.
In about a week, students across Canada will be re-entering the classrooms for yet another year of their educational careers. Of course, this occasion comes with the necessary preparation for classes which includes the purchase of new clothing, books and other supplies. As well, you cannot forget the heavy tuitions that post-secondary education students are required to fork over.
According to the Canadian Press today, a recent study shows that back-to-school spending is not one of those events that should be greatly affected by the recession. The study, which was conducted by Harris/Decima between August 7 to 11, involved 1,000 parents with children aged 17 and under living in their households. Apparently, these parents “are not planning to scrimp on back-to-school spending.”
Scotiabank reports that parents will spend approximately $310 this year to prepare their children for going back to school. The study has determined that this is about the same level of spending as last year although parents can expect to spend an additional $406 on school-related activities throughout the year. Interestingly, the same survey concludes that 71 per cent of parents have not yet budgeted for these costs which may include everything from pizza lunches to field trips.
Aron Gampel, Scotiabanks deputy chief economist was quoted as saying: “Spending by Canadian households on school-related goods and services typically is more stable than other discretionary purchases in both good and not so good times.”
Of the provinces across Canada, Quebec was found to inhabit the parents who plan on spending the most on their children's upcoming school year with an average budget of $399. Meanwhile, parents from Ontario were reported to be spending the least at $266.
Especially of note to Canadian business owners who may be interested in considering a merchant cash advance to help stock up on school supplies: “The study also found that 64 per cent of parents plan to use debit (if not) cash to pay for most of their back-to-school purchases.”