Capital One�s Annual Back-to-School ShoppingSurvey Finds That More Parents Think They Are Having the(Money) Talk, Teens Aren�t Getting the Message

MCLEAN, Va.--(BUSINESS WIRE)--Six out of ten consumers say economic concerns will impact theirback-to-school shopping spending this year, but as parents and teens look to pinch their pennies thisyear many don't see eye-to-eye on shopping priorities and plans, found Capital One's 13th AnnualBack-to-School Shopping Survey of parents and teens.

Style vs. price showdown: Nearly half (47%) of parents surveyed consider price to be the mostimportant factor when making a back-to-school purchase followed by quality (36%), but nearly half(46%) of teens said style and appearance top their priority list when making a back-to-schoolpurchase and 19 percent of teens believe brand name is the most important factor to consider whenmaking purchases. Only 22 percent of teens surveyed consider price a top priority, and even fewer(10%) see quality as their biggest concern.

Debate over department store vs. discount retailer: Forty percent of parents said they plan to do themajority of their shopping at discount retailers and 29 percent expect to shop in department stores.For teens those numbers flip, with 47 percent of teens expecting to do the most of their shopping atdepartment stores and 29 percent expecting to do the majority of shopping at discount retailers.

Technology disconnect: This year, clothing tops the shopping list for the majority of parents andteens, followed by traditional school supplies like backpacks, notebooks, pens and pencils. However,21 percent of teens identified cell phones and smart phones, electronic gadgets, and computers as"must have" items on their lists, while only 4 percent of parents identified those items as topshopping priorities.

Overall, 69 percent of parents said they believe they are doing enough to teach their kids aboutpersonal finance and money management and 70 percent say they discussed back-to-schoolshopping and wants vs. needs with their child, yet less than half of teens (47%) say they haveworked with their parents to develop a budget for spending and saving their money.

"Back-to-school shopping season is a great opportunity for parents to help influence moneymanagement habits in their children that can last a lifetime, as we know our childhood experiencesshape our adult attitudes about money," said Shelley Solheim, Director, Financial Education, CapitalOne Financial Corporation. "Many parents say they're talking with kids about important conceptslike wants vs. needs this shopping season - which is great news -- but parents can further reinforcethose practices by building a shopping budget with teens, discussing priorities and trade-offs, andcomparison shopping together to get the best deals."

About half of parents (52%) say they will spend about the same amount as last year, while 25percent expect to pay more and 19 percent expect to pay less than last year. More than 1 in 5parents (21%) say they spend more on back-to-school supplies each year than they are saving forcollege.

Twenty-one percent of parents plan to pay between $150 and $200 per child

Twenty-four percent of parents plan to spend more than $200 per child

About a third (32%) plan to spend $100 or less

Teens Lack Practical Money Management Experience

Although teens report high levels of confidence in their money management skills - 71 percent gavethemselves a grade of "A" or "B" for their current knowledge of financial responsibility - teens havelimited practical money management experience. Fewer than half of teens have worked with theirparents to develop a budget for spending and saving - even though 62 percent of teens reportreceiving an allowance, and 63 percent of those who do get an allowance receive between $10 and$50 each month.

Teens also lack an array of other money management experiences:

Sixty-five percent of teens do not plan to help pay for their back-to-school shopping

Half (50%) of teens say they spend between $5 and $20 each week

Only 27 percent of teens have a summer job

9 out of 10 teens say they are not involved in paying household bills or budgeting

Eighty-three percent of teens plan to attend college, but 51 percent are not saving money to helppay for college

Teaching Teens Personal Finance Skills

Capital One offers the following tips to help parents take advantage of the back-to-school shoppingseason and other opportunities to talk to their teens about money management skills:

Make back-to-school shopping a family affair. Sit down together and make a list of what your teenalready has, what they need and how much you can spend.

Do your homework. Make back-to-school shopping something you do together and use it as anopportunity to teach your teen how to comparison shop. You can also encourage your teen to look atprices online to see how they fit with their budget before you head to the store.

Crunch numbers together - establish a budget. Consider having your teen contribute money topurchasing school supplies and other necessities throughout the year. Discuss how much they maycontribute and work it into your budget. Once you set a budget, stick to it.

Help set goals and steps to achieve them. Thenext time your teen gets a windfall--from a gift,allowance or part-time job--ask them if they havea plan for their money. If not, talk about thingsthey might want to save for and how they cancreate their own budget.

Participate in the day-to-day. Teach your kidshow to write checks, balance a budget and theimportance of paying bills on time the next timeyou pay monthly bills. This gives teens an idea ofhow much utilities and other necessities, likeauto insurance, will cost them as adults.

For more free tips and tools to talk with yourkids about money, visitCapitalOne.com/financial-education.

Survey Methodology

For Capital One's annual Back-to-School survey, Braun Research was engaged to conduct 1,064interviews with 564 parents of teenagers aged 11-17 and 500 teenagers, aged 11-17 across theUnited States. Surveys were conducted by telephone from July 10, 2013, through July 15,2013. The margin of error for the parents at 95% is plus or minus 4.13%. For the teens, themargin of error at 95% is plus or minus 4.38%. Interviews were monitored at random. Sampling forthis study was conducted across the United States using a national probability sample of allexchanges and area codes of households with someone aged 11-17 living there. All interviews wereconducted using a computer-assisted telephone interviewing system. Statistical weights weredesigned from United States Census Bureau statistics.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whosesubsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N. A., had $209.9 billionin deposits and $296.5 billion in total assets as of June 30, 2013. Headquartered in McLean, Virginia,Capital One offers a broad spectrum of financial products and services to consumers, smallbusinesses and commercial clients through a variety of channels. Capital One, N.A. has more than900 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia andthe District of Columbia. A Fortune 500 company, Capital One trades on the New York StockExchange under the symbol "COF" and is included in the S&P 100 index.