US College Students Spend $50 Billion Annually According to Latest Nationwide Online Study

Rochester, NY and Cranbury, NJ, June 12, 2001 — America’s college students are currently spending more than $50 Billion per year, with full-time students personally spending an average of $6,508 and part-time students personally spending an average of $5,983 annually. Although spending slightly less overall, part-time students spend proportionately more on discretionary items ($3,469 annually) than full-time students ($1,822 annually).

These are among the findings of the inaugural wave of the 360 College Explorer^TM Outlook Study. The study, which covers all types of college students (residential/non-residential, 2 year/4 year, full-time/part-time, undergraduate/graduate) as well as young adults who are not enrolled in college, has been developed by MarketSource Corporation and Harris Interactive (Nasdaq: HPOL). The study was conducted online and interviewed 3,867 young adults in April 2001.

"The college market is particularly interesting because for many products and services it represents an age where purchases are made for the very first time," said Derek White, Senior Vice-President of Marketing at MarketSource. "While teens often have a strong influence on purchasing, it is really the 18-24 year old cohort that first buys without input from parents or a need to justify their purchases to them. It is a critical segment for marketers to reach and listen to."

The study also found that 4-year students ($7,491 per year) are spending significantly more than 2-year students ($3,493 per year), but that this difference in spending is explained by greater tuition/room and board costs. After removing the costs of attending college, the study shows that 2-year students spend slightly more—$2,304 on average versus $1,836 for 4-year students.

"The study is unique in that it gathers information from both students and non-students—young adults who attend college as well as those who are in the workforce," stated John Geraci, Vice-President of Youth Research at Harris Interactive. "For instance, we found that the source of income is dramatically different among students and non-students. Not surprisingly, parents are a key income source for students, but not for non-students, who rely on jobs for income. However, we also found that both groups are alike in some ways. For example, debt, specifically credit cards, is relied upon for purchases for students and non-students alike, with 61% of young adults (aged 18-24) carrying a median monthly credit card balance of $388."

Results of the 360 College Explorer^TM Outlook Study will be first presented in San Francisco on June 20 at "Marketing to College Students Online and Offline"—a conference organized by the International Quality and Productivity Center.

360 College Explorer Outlook Study
MarketSource Corporation/Harris Interactive
3,867 Interviews Conducted April 2001

360 College Explorer Outlook Study
MarketSource Corporation/Harris Interactive
3,867 Interviews Conducted April 2001

About the Study

The 360 College Explorer^TM Outlook Study is a new online college survey from MarketSource Corporation and Harris Interactive. The study covers a variety of topics, from the market power and influence, to technology adoption and views, brand and category usage, and hopes and dreams for the future. The study is conducted twice annually (fall and spring semesters) with a minimum of 6,000 completed interviews annually with both college students (2 year and 4 year/full-time and part-time) and 18-24 year olds who are not enrolled in college. Data in this release were collected in May 2001. Complete data from this study are available on a subscription basis.

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