May 30, 2008 6:01 AM, PROMO Xtra

When it comes to discretionary spending, moms drop the most (23%) on a single category—apparel. But nearly half (48%) of every dollar is used on entertainment items, including toys and board games, leisure activities, books, music movies videos games, electronics and concerts, according to a recent report.

The report, “Kids’ Share of Wallet,” by The NPD Group, looks at how and where mothers spend theor discretionary income on their children and gives manufacturers and retailers of kids’ products an inside look at those factors and how much kids influence what is spent. It also focuses on factors that impact purchase decisions, including price, brand, television advertising and promotions.

The survey found that the age of the child, not household income, is the main driver of mom’s spending. Women who have children older than five years of age spend about 35% more than mothers with younger children. Age also plays a factor when it comes to spending influence. However, gender doesn’t impact the average amount spent by category. Two exceptions are mothers of girls who spend more on apparel and mothers of boys drop more on video games.

“Monitoring how and where parents spend money on behalf of their kids is critical information for anyone involved in the youth market,” Anita Frazier, industry analyst, The NPD Group, said in a statement “There are a lot of product categories competing for a fixed amount of discretionary spending, and understanding the factors that drive purchases has profound implications for product development, marketing, promotions, and licensing for all youth-oriented products and services.”

Six out of 10 mothers (59%) said their children have a strong influence on the purchases they make. TV ads has the biggest impact on entertainment-related items, including toys and video games, while brand name influences consumer electronics and footwear choices. One factor key to purchasing decisions across all categories is the style and look of a product, the survey found.

And despite rising concerns about childhood obesity, fast food and beverages make up about 12% of moms’ discretionary spending on their children, the report found.

The study was based on 1,437 surveys sent to mothers who have a child 14 years older or younger. The responses were completed between Feb. 21 and March 5.

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