Kids shopping for back-to-school luxury

Ah, back-to-school time. It used to just mean a new notebook and a fresh pair of sneakers, but today's teens and pre-teens have increasingly high-end tastes when it comes to shopping for the all-important first day of school.

Many of the mid-level and discount retailers that have been suffering this year due to consumer spending cutbacks have their hopes pinned on back-to-school. Meanwhile, luxury brands have been reporting increased sales; $150 billion last year.  The strategy some parents are taking to deal with the their teens' quest for luxury goods is to spend more on the accessories such as the designer handbag or shoes, while buying more basic wardrobe staples at retailers like Target and Wal-Mart. Some teens also use the money from summer jobs to boost their back-to-school budget.

And then there are the gadgets.  According to the National Retail Federation’s 2007 Consumer Intentions and Actions Back-to-School survey, the electronics category will see the biggest increase in sales this year, with families spending 13 percent more on electronics than last year. Cell phones, laptop computers and iPods are among the most craved items. Another group, ShopLocal, surveyed 500 preteens and found that kids are as savvy about brand names of electronics, with 83% asking for iPods by name and 64% asking for the Nintendo Wii by name.

Related: For information in buying electronics as well as other important back-to-school tips check out our comprehensive guide.