Visa Survey: Prom Spending Surges
drivingrl
Posts: 1,448
http://www.reuters.com/article/2012/04/13/idUS164119+13-Apr-2012+PRN20120413
Inflation for Annual School Dance Most Acute in the Northeast with Spending Twice That of Other Regions
PR Newswire
SAN FRANCISCO, April 13, 2012
SAN FRANCISCO, April 13, 2012 /PRNewswire/ -- Despite continuing economic sluggishness, a new national survey by Visa Inc. shows that when it comes to high school proms, Americans appear to be willing to spend ever increasing amounts. American families who have teenagers will spend an average of $1,078 each on the prom, a 33.6% boost over the $807 spent in 2011.
"Prom season spending is spiraling out of control as teens continuously try to one-up each other," said Jason Alderman, Senior Director of Global Financial Education, Visa Inc. "It's important to remember that the prom is a high school dance, not a wedding, and parents need to set limits in order to demonstrate financial responsibility."
The prom spending data also revealed some interesting regional and income level disparities. Families in the Northeast will spend twice as much as every other region of the country. Regionally, the survey found:
Northeastern families will spend an average of $1,944
Southern families will spend an average of $1,047
Western families will spend an average of $744
Midwestern families will spend an average of $696
One troubling statistic is that parents surveyed who fell in the lowest income brackets (less than $50,000) plan to spend more than the national average - $1,307. Breaking down the spending by family income, the survey found:
Parents who make under $20,000 will spend an average of $1,200
Parents who make $20,000-$29,999 will spend an average of $2,635
Parents who make $30,000-$39,999 will spend an average of $801
Parents who make $40,000-$49,999 will spend an average of $695
Parents who make over $50,000 will spend an average of $988
Parents who make over $75,000 will spend an average of $842
The Visa survey also found that parents are planning to pay for 61% of prom costs while their teens are only covering the remaining 39%.
"One of the reasons that prom spending may be running amok is that parents are paying the vast majority of the costs, giving teens little incentive to economize," Alderman added.
To help manage prom spending for items such as attire, limousine rental, tickets, flowers, pictures, food, accommodations and after parties, Visa offers it's free, award-winning financial education program - Practical Money Skills for Life (www.practicalmoneyskills.com). The program reaches millions of people around the world each year. At Practical Money Skills for Life, educators, parents and students can access free educational resources including personal finance articles, games, lesson plans, and more.
To save on prom costs, here are a few ideas:
Shop for formal wear at consignment stores or online. As with tuxedos, many outlets rent formal dresses and accessories for one-time use.
Have make-up done at a department store's cosmetics department or find a talented friend to help out.
Split the cost of a limo with other couples, or drive yourselves.
Take pre-prom photos yourself and have the kids use cell phones or digital cameras for candid shots at various events.
Work out a separate prom budget with your child well in advance to determine what you can afford. Set a limit of what you will contribute and stick to it. If teens want to spend more than that, encourage them to earn the money to pay for it or decide which items they can live without.
*The survey results are based on 1,000 telephone interviews conducted nationally from March 30 – April 1 in cooperation with GfK Roper OmniTel.
:fp: These parents are incredibly generous. I would not be so generous to my own kids - I'd make 'em pay for it themselves.
Inflation for Annual School Dance Most Acute in the Northeast with Spending Twice That of Other Regions
PR Newswire
SAN FRANCISCO, April 13, 2012
SAN FRANCISCO, April 13, 2012 /PRNewswire/ -- Despite continuing economic sluggishness, a new national survey by Visa Inc. shows that when it comes to high school proms, Americans appear to be willing to spend ever increasing amounts. American families who have teenagers will spend an average of $1,078 each on the prom, a 33.6% boost over the $807 spent in 2011.
"Prom season spending is spiraling out of control as teens continuously try to one-up each other," said Jason Alderman, Senior Director of Global Financial Education, Visa Inc. "It's important to remember that the prom is a high school dance, not a wedding, and parents need to set limits in order to demonstrate financial responsibility."
The prom spending data also revealed some interesting regional and income level disparities. Families in the Northeast will spend twice as much as every other region of the country. Regionally, the survey found:
Northeastern families will spend an average of $1,944
Southern families will spend an average of $1,047
Western families will spend an average of $744
Midwestern families will spend an average of $696
One troubling statistic is that parents surveyed who fell in the lowest income brackets (less than $50,000) plan to spend more than the national average - $1,307. Breaking down the spending by family income, the survey found:
Parents who make under $20,000 will spend an average of $1,200
Parents who make $20,000-$29,999 will spend an average of $2,635
Parents who make $30,000-$39,999 will spend an average of $801
Parents who make $40,000-$49,999 will spend an average of $695
Parents who make over $50,000 will spend an average of $988
Parents who make over $75,000 will spend an average of $842
The Visa survey also found that parents are planning to pay for 61% of prom costs while their teens are only covering the remaining 39%.
"One of the reasons that prom spending may be running amok is that parents are paying the vast majority of the costs, giving teens little incentive to economize," Alderman added.
To help manage prom spending for items such as attire, limousine rental, tickets, flowers, pictures, food, accommodations and after parties, Visa offers it's free, award-winning financial education program - Practical Money Skills for Life (www.practicalmoneyskills.com). The program reaches millions of people around the world each year. At Practical Money Skills for Life, educators, parents and students can access free educational resources including personal finance articles, games, lesson plans, and more.
To save on prom costs, here are a few ideas:
Shop for formal wear at consignment stores or online. As with tuxedos, many outlets rent formal dresses and accessories for one-time use.
Have make-up done at a department store's cosmetics department or find a talented friend to help out.
Split the cost of a limo with other couples, or drive yourselves.
Take pre-prom photos yourself and have the kids use cell phones or digital cameras for candid shots at various events.
Work out a separate prom budget with your child well in advance to determine what you can afford. Set a limit of what you will contribute and stick to it. If teens want to spend more than that, encourage them to earn the money to pay for it or decide which items they can live without.
*The survey results are based on 1,000 telephone interviews conducted nationally from March 30 – April 1 in cooperation with GfK Roper OmniTel.
:fp: These parents are incredibly generous. I would not be so generous to my own kids - I'd make 'em pay for it themselves.
drivingrl: "Will I ever get to meet Gwen Stefani?"
kevinbeetle: "Yes. When her career washes up and her and Gavin move to Galveston, you will meet her at Hot Topic shopping for a Japanese cheerleader outfit.
Next!"
kevinbeetle: "Yes. When her career washes up and her and Gavin move to Galveston, you will meet her at Hot Topic shopping for a Japanese cheerleader outfit.
Next!"
Post edited by Unknown User on
0
Comments
10% of your income is going to Prom
you wanna know how much i spent on prom? zero
I know. Isn't that terrible? I paid not one dollar for prom, either.
kevinbeetle: "Yes. When her career washes up and her and Gavin move to Galveston, you will meet her at Hot Topic shopping for a Japanese cheerleader outfit.
Next!"
and i never went to a prom either
R.i.p. My Dad - May 28, 2007
R.i.p. Black Tail (cat) - Sept. 20, 2008
Ha! I wish it worked like that.
kevinbeetle: "Yes. When her career washes up and her and Gavin move to Galveston, you will meet her at Hot Topic shopping for a Japanese cheerleader outfit.
Next!"