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BACK TO SCHOOL: Parents expected to spend more on supplies this year

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Falling loonie expected to help boost the bottom lines of Canadian retailers

VANCOUVER (NEWS 1130) – In just a couple of weeks, students return to class and that means families are starting to shop for supplies.

In Part One of our five-part “Back To School” series, we’re finding out parents will be spending more on binders, books and other must-haves this year.

While it might not be the best news for moms and dad, the falling loonie is expected to help boost the bottom lines of Canadian retailers.

Daniel Baer with Ernst and Young explains why we are going to be spending more:

“There are a few factors going into the consumer saver. Gas prices are lower than they were this time last year — by about 10 per cent year over year. That leaves a little more disposable income.”

He adds the timing of the Universal Child Care Benefit will also leave parents with a bit more disposable income.

Because of the low loonie, Baer believes a lot more parents will be doing their shopping on this side of the border. “The lower Canadian dollar will also translate into more spending at Canadian retailers and less across the border.”

A survey from Deloitte earlier this summer found parents expect to spend more than $430 on school supplies this year.