College students head to campus this month with $122 billion in spending power, including $24 billion in discretionary spending.
These 18- to 24-year-olds are found to be savvy, capable and influential consumers, with one in eight (13%) considering themselves early adopters of emerging devices and gadgets, according to a study, 360 Youth College Explorer.
The study also found that the majority of college students (90%) own a computer, and two-thirds (65%) have broadband connections. Among students, 62% own a stereo, a cell phone (77%), a printer (77%), a television (84%) and a calculator (86%). Three-quarters of students (74%) own a DVD player and just over half (55%) own a gaming system. More than six in 10 use their cell phone for text messaging (62%) and playing games (70%) and 41% of students with cell phones can access the Internet through their mobile phone.
Entertainment is high on the list when students start spending. Nearly $3 billion is spent annually on movies, DVDs, music and video game purchases and rentals. Music sales total $474 million, theater tickets $658 million and games $341 million. At home and in their dorms they are watching movies, spending $600 million to buy and another $326 million to rent DVDs.
The money comes from hard work.
Some 75% of college students hold down a job earning $645 per month on average. One fifth (20%) work on-campus and four in 10 (42%) work during school breaks. Parents help out with another $154 per month. When it’s all added up, students spend more than $13,000 per year, 19% is discretionary, adding up to $211 per month of discretionary spending.
“What we see from the study is that, contrary to common perception—maybe even their own perception—college students are not poor,” said John Geraci, VP-youth and education research for Harris Interactive, which fielded the study online. “College students are not only a capable bunch, but important beyond their numbers.”
The study was conducted during the fall 2003 semester, polling 4,608 college students ages 18 to 30, including 3,451 18- to 24-year-olds.
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