AGENDA (Back-to-School Study)

1. Back-to-School Study (ILCU) Findings from iReach Consumer Omnibus Research (June 2011)

2. AGENDA (Back-to-School Study) • Study Background (Methodology) • Consumer Demographic Profile • Back-to-School Expenditures • Voluntary Contributions / School Fees • Shopping for Better Value for School Items • Back-to-School Allowance 2

3. STUDY BACKGROUND (Methodology) Consumer Research Project conducted by iReach Market Research on behalf of The Irish League of Credit Unions Back-to-School Study Study conducted as part of the iReach Consumer Omnibus Survey Online Survey Software iReach utilises leading market research solution for all aspects of survey project management: sampling, design, data collection and tabulation Online Survey Fieldwork undertaken between 23/06/11 - 29/06/11 iReach Online Consumer Panel iReach uses proprietary panel across consumer groups, built on a nationally representative model Consumer Panel Consumer Research Study conducted nationwide Sample Size=1,000 respondents (Confidence Level of 95% and a Confidence Interval of 4%) Key Elements of the Study 1. Back-to-School Expenditures 2. Voluntary Contributions / School Fees 3. Shopping for Value for Money 4. Back to School Allowance 3

4. Research Highlights • A typical Irish family spends approximately €400 on each child when getting them ready back to school in September • Back-to-school expenditures for a second-level student (€470) is almost 50% higher than for a primary-level pupil (€320) • School uniforms incl. shoes (€229) and schoolbooks (€182) are the biggest school related expenses for Irish parents • Parents of a secondary school child pay almost twice as much for schoolbooks (€238) than for a primary school child (€125) • With high book prices, it’s no surprise that 88% of parents would like to see a move to laptops in the classroom • Over half (54%) of parents are forced to use other sources than monthly income to finance back-to-school expenses and almost two-thirds (65%) admitted that back-to-school costs will adversely impact their holiday plans and bills management • With this in mind, 69% of parents feel that schools should be more proactive in keeping costs down for school going children • Eight in ten parents (81%) who are entitled for back-to-school allowance admitted that this is allowance is insufficient • Moreover, 76% of parents are requested to make school voluntary contribution that amounts to €130 on average per child • When it comes to cutting back-to-school related costs: • Six in ten (61%) who shop online for back-to-school items for their school age children do so to save money • Four in ten parents (38%) feel pressured to buy branded school items over generic ones for their children • Dunnes Stores (28%), followed by Marks & Spencer (24%) is most popular for value-for-money school clothing 4

5. iReach Consumer Survey Consumer Demographic Profile

6. RESPONDENT PROFILE 1. Gender Status 2. Age Status 3. Education Status Young Adults: 40% Mid-Age: 48% Mature: 12% 6

7. PARENT PROFILE Parenthood (28% of all respondents) Primary School Children (54% of parents / 15% of respondents) Secondary School Children (46% of parents / 13% of respondents) 7

8. 1.0 Credit Unions • - Back-to-School Expenditures -

9. 1.1 Back-to-School Spends Q:How much do you spend on average per child in getting them ready to go back to school? (n=280) • A typical Irish family spends approximately €400 on each child when getting them ready to go back to school in September • Back-to-school expenses for second-level students (€470) are almost 50% higher than for primary-level pupils (€320) • Irish parents spend €320 on back-to-school expenses for a child in primary school. • The parents spend €470 on back-to-school expenses for a child in secondary school. Detailed Breakdown: 9

10. 1.3 Average Spend on School Related Costs • Parents of a secondary school child pay almost twice as much for schoolbooks (€238) than for a primary school child (€125) • Costs for school uniforms including shoes are also higher for a secondary school child (€281) compared to a primary school child (€177) • Extracurricular activities are equally expensive with both primary school (€145) and secondary school children (€152) • Costs outlined below are on an annual basis Q:On average, how much do you spend on the following for your school aged child(ren)? (n=280) 10

11. 1.4 Preferred Method of Back-to-School Financing Q: Which method of payment do you use to pay for your child’s back to school? (n=280) • Monthly income is the most common way to source back-to-school expenses (46% of parents); • Yet, 54% of Irish parents are forced to locate finances for back-to-school expenditures from elsewhere: • Credit cards (16%), savings (13%), back-to-school allowance (12%) and credit unions (8%) are a popular source • Parents of a secondary level child are forced to dig deeper into their savings (15%) or use credit card (20%) or credit union (8%) 11

12. 1.5 School Tech Requirements Q: Would you like to see a move to use laptops / e-book readers more in the classroom if more costs effective? (n=280) • 9 in 10 parents express a preference for laptops or e-book readers to become part of in-class educational experience of their children • Laptop use is highly desired by Irish parents in both primary (87%) and secondary school environments (89%) 12

13. 2.0 Credit Unions • - School Voluntary Contributions and Fees - 13

14. 2.1 Voluntary Contribution / School Fees Q: Does your school ask for “voluntary” contribution (n=280)? How much is this voluntary contribution per annum? (n=213) Q: Do your children go to a fee paying school (n=280)? Q: How much are the school fees per child per annum? (n=25) • Voluntary Contribution: • Three-quarters of parents are requested to make school voluntary contributions that amount to €130 on average per child • While primary schools are more likely to request voluntary contributions (80%) than secondary schools (72%), secondary school-based child parents are obliged to pay higher contributions (€158) than parents of a primary school child (€102) • School Fees: • 9% of Irish parents send their child(ren) to a fee paying school (5% primary school and 13% secondary school children). • While school fees average at €1,750 in primary schools, they are almost 3x higher in secondary schools (€4,750) 14

15. 3.0 Credit Unions • - Shopping for Better Value - 15

16. 3.1 Shopping Online for Back-to-School Items Q: Do you shop online for back to school needs? (n=280) Q: Why do you shop online for back to school needs? (n=98) • Over one third of Irish parents shop online for back-to-school items for their school-age children: • Saving money (61%) and convenience (34%) are the primary reasons behind these purchases 16

17. 3.2 Buying Branded School Supplies Q: Do you feel pressured to buy branded clothes, stationary and other items as opposed to generic or own brand items? (n=280) • Four in ten parents feel pressured to buy branded school items over generic ones for their children 17

18. 3.3 Best Value School Clothing Retailer Q: Where do you think offers the best value in school clothing? (n=280) • Dunnes Stores is the most popular store with Irish parents (28%) shopping for school clothing to get the best value • Marks & Spencer is the second (24%) and Penney’s is the third most popular place (19%) for the best value school clothing • Primary school child parents are twice as more likely to shop in Tesco (19%) than secondary school child parents (10%) 18

19. 4.0 Credit Unions • - Back-to-School Allowance - 19

20. 4.1 Back-to-School Allowance Q: Are you eligible for the Back to School allowance? (n=280) Q: Is it sufficient in covering your costs? • One-fifth of the parents of school-age children are entitled for back-to-school allowance • However, over three-quarters (81%) of these admitted that back-to-school allowance they receive from Welfare is still insufficient in covering their back-to-school expenses 20

21. 5.0 Credit Unions • - School Support and Cost Implications - 21

22. 5.1 School Support to Parents Q: Do you feel Irish schools support parents in keeping costs down for school going children? (n=280) • Over two-thirds of parents (69%) believe that Irish schools do not support parents in keeping costs down for their school going children: • These negative attitudes are more pronounced amongst those parents who have secondary school children (71%) 22

23. 5.2 Implications of Back-to-School Costs Q: Are you sacrificing any of the following to pay for your child / children to return to school? (n=280) • Almost two-thirds of all parents admitted that back-to-school expenses will negatively impact their family plans or bills: • 49% of all parents will have to sacrifice their family holiday or children summer camps this year • Back-to-school expenses will also have an adverse impact on 7% of domestic bill payments • Additional 7% of all parents will be forced to use credit cards to meet all back-to-school expenses for their children 65% 66% 65% 23

24. Thank you. 24