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Frugal lessons for back-to-school teen shoppers

Wednesday, August 19, 2009
(Updated 8:32 am)

RICHMOND HEIGHTS, Mo. — Brittney Thomas, 15, was used to her grandma dropping a thousand dollars at her favorite stores in the Galleria for her back-to-school wardrobe.

She was in for an expectation adjustment this year.

"We've got to cut back," Jerrie Taylor, 63, of St. Louis, Mo., told her before they stepped foot into the mall.

She bought fewer jeans, fewer shoes and paid closer attention to sales. They spent less than $400.

Brittney said she "sort-of" understood her grandmother's reasoning and was resigned to live with it.

Retailers are bracing themselves for more and more conversations between teens who have champagne tastes and parents on a beer budget.

Four out of five Americans say the Great Recession has impacted how they will shop for back-to-school. Many are spending less, using coupons, buying generic brands and hunting for discounts, according to the National Retail Federation. Overall back-to-school sales is expected to decline 7.6 percent compared to last year.

Such frugality was reinforced Thursday when reported national retail sales for July dropped unexpectedly (0.1 percent from the previous month). The bleak figures reinforce worries about whether shoppers will be able to spend enough to help an economic recovery take hold.

The back-to-school season, which started in July and continues through Labor Day, is a critical time for retailers, second only to Christmas. Shoppers are clearly scaling back, and that is forcing retailers to be cautious in the months ahead as Americans embrace frugality.

This year, in addition to the fights about what not to wear, parents can expect a few more battles about how much is too much.

Leigh Thorne, 37, drove to St. Louis from Cape Girardeau, Mo., with her 11-year-old daughter, Morgan, to take advantage of the recent tax-free weekend.

"I have to have jewelry that goes with every outfit," Morgan said. "I love jackets and capris."

Her mother came armed with a 40 percent off coupon for her daughter's favorite store and a budget.

"I was not a huge coupon person, but now, I'm all about the coupon," Thorne said.

This year, she plans to spend about $500.

"In past years, we did not come with a limit," she said. Thorne is sure there will be at least one showdown in the dressing rooms.

Discount retailers, such as TJ Maxx and Marshalls, are anticipating battles over brands, and a new radio spot features a boy telling his mother: "If I can't get those jeans, my life is basically over."

The announcer deadpans: "This back-to-school season, countless teen lives will be fake ruined if they can't wear expensive mall labels." (TJX Cos. reported sales rose 5 percent for the four-week period ended Aug. 1 as compared to the four-week period the previous year.) Even fake ruined lives can be hard to take.

Susan Klement, 38, of Webster Groves, Mo., started hearing a list of must-haves a month ago from her 11-year-old daughter, Sabrina. On the list: A whole new wardrobe. Susan pointed out that she had perfectly good clothes hanging in her closet.

"But, those are last year's clothes," Sabrina said.

"Some of them still fit," her mother responded.

"But, I need_," her daughter started.

"No, you don't!" her mother, cut her off. Susan said she planned to spend half as much as she spent last year at back-to-school time.

Jim Fay, co-author of "Millionaire Babies or Bankrupt Brats: Love and Logic Solutions to Teaching Kids About Money," says a child as young as 6 years old should be taught about budgeting and making choices. Older children can be told they are getting a set amount and instructed to spend it the very best way they can. Instead of saying no constantly, parents can tell their children to put their wants on a "wish list." They can take a day to price out their wish list at various stores and then prioritize which items fit their budget.

If they end up with one new outfit for the entire year, the key is for parents to provide genuine empathy but resist the impulse to rescue. Give them the expectation that they are smart enough to figure it out, and be prepared for children to test you, he said. He suggests having some responses ready no matter what your child throws at you, such as:

"Oh, I love you too much to argue," or "I know, it's hard."

Most important, he says: "Whatever you do, do not listen to their rhetoric."

Accompanying Photos

Mary Altaffer (Associated Press)

Photo Caption: Customers at a JC Penney store in New York.

Comments

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kurgun

August 19, 2009 - 11:04 am EDT

My question to that would be, what is wrong with the clothes you wore the previous year? Ridiculous that people fall into these traps, just tell your kids/grandkids they should be happy with what they have and live with it. That's what my parents/grandparents did and of course I didn't want to hear it at the time, but they were and are absolutely right. Being blunt about it to me is the best way to tell anyone anything regardless of age. Clothes can be washed and reworn again, just be glad you have them to cover your back. As for retailers, they shoot themselves in the foot for not have good negotiators to get better wholesale prices.

Ultimately they retailers are what keep the wholesalers and manufacturers in business, to me they should play hardball and get the best rock bottom price for the goods they sell in their store. Same thing can be said for grocery stores, all these farmers complain about bad weather etc for their profit losses when they should be looking at the real reason they are going broke. It's not the economies fault when a business has bad business skills, and what really itks me is when businesses ask for tax breaks, ridiculous.

As far as taxes go and the economy to recover it's a simple process of getting rid of taxes, all of them for about 6 months, that will get the economy back on track. So the govt needs to spend less then they do, they are the reason for this economic mess.

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