- Elaine Wong

This year, college students will shell out approximately $306 billion in back-to-school spending, per a new report by Alloy Media + Marketing.

Come this fall, 16 million college students—a 6 percent increase—will hit the classrooms. Their combined 2010 spending power is up 13 percent, compared to last year. The spike is attributed to “an increase in per capita spending per student,” said Tammy Nelson, marketing and research vp at Alloy.
 
The report, released today (Wednesday), is part of Alloy’s 10th annual "College Explorer" survey, which analyzes the spending habits of college students, ages 18 to 34. This year’s survey, conducted in conjunction with market research firm Harris Interactive, polled 1,575 students enrolled in two-year, four-year and graduate programs during the April time frame.
 
It's not just spending on mandatory, back-to-school purchases (books, room, board and tuition) that are going up. Alloy’s survey found that males and females ages 18 to 34 are also spending 10 percent more on discretionary items like gaming, technology and beauty products. (In fact, males are spending “slightly more”—$25 versus $22 per month for females—on personal care products.) Overall, college students are spending 3 percent more per month on discretionary purchases compared to last year, or $361 per person.  Alloy expects discretionary spending to hit $69 billion this year, a stark contrast to when retailers focused on price and value during last year’s back-to-school season.

The report also found that technology is high up on the shopping list. Two percent of college students currently own an e-reader and another 50 percent say they plan to buy one in the next year. Smartphone ownership is expected to rise 26 percent. And, 73 percent of males expect to purchase a portable gaming console this year, versus 67 percent who plan to buy a non-portable version.
 
So what makes college students choose certain brands? Social responsibility is a driving factor for purchases, according to Alloy. That’s been the case for the last three to four years, said Nelson. Forty-eight percent of this year's respondents said social responsibility is important, versus 43 percent last year. Nelson added that it’s gotten to the point where consumers have come to expect social and environmental traits from brands.

At a time when the general population is still cutting back, much of the spending increase among college students is due to the fact that they hold a generally optimistic view of the nation’s economic recovery. Four out of every 10 students, or 42 percent of the survey’s participants, said they "feel the economy will improve in the coming year.” That’s in contrast to the 31 percent of Americans ages 35 and older who expressed the same.