As teenagers, we have always been intrigued with different things and one such thing is spending money. Teenagers get their money from their parents in the form of monthly pocket money. Part-time jobs have also become the source of income for most teens.
The marketers in the United States did not pay much attention to the teens in their advertising campaigns in the past years. But since teens have started spending a good amount of money the marketers are also accepting that teens contribute a good share in the market. Often the brand loyalty that people carry till their adulthood has started from their teenage.
Teen consumers have different spending behaviours as compared to adult consumers because they earn their money with hard work as they have to manage time for their studies and other activities as well.
According to the source the average teenager spends $2,150 per year.
That’s 42 million teens in America spending their money on a variety of products.
Teenagers in this era are smarter and have various options available for earning. They have become better at financial activities. Not only do they spend their money on a range of products and services but also they know how to save their money.
For brands to attract teenagers to spend on their products they need to be more specific, fast and economical. As teenagers nowadays are the social media users not only users they are influenced by the internet and social media and as the internet is fast they need the shopping services to be fast as well. Most teenagers spend their money on entertainment, clothing, Footwear and food.
Due to the pandemic things also affected om teen spending and saving habits but this year it’s time for some good waves to come in everyone’s way. The facts and figures of teenager spending are given below so let us see what teen spends on most, what they plan financially and much more.
KEY STATISTICS ON TEENAGE SPENDING
- The average teenager spends $9,626.76 per year.
- 93% of parents say their children influence family and household purchases.
- Teens who work make an average of $460 per month to spend on top of what their parents shell out
- The Gen Z age group reports having spent less money in 2020 than any other year of the past two decades
- Apparel spending came in at $507 this year, down 11% from a year earlier.
- Teenagers on average are spending $2,600 annually on food and clothes.
1. The average teenager spends $9,626.76 per year.
In accordance with the source, the average annual expenditure of a teenager is $9,626.76 dollars. This sum includes both the expenditures made solely by the adolescents themselves as well as the expenditures made by their parents on the teenagers. Sixty-two percent of the money that teenagers spend is provided by their parents.
This overall spending by the teenagers mostly consists of food and clothes spendings.
2. 93% of parents say their children influence family and household purchases.
According to Forbes, as indicated in a study by CASSANDRA, 93 percent of parents have said that their children, particularly adolescents, have an impact on the family and household purchasing decisions and expenditures. Consequently, adolescents account for the vast majority of the money spent by parents on other activities and entertainment. This group of teenagers accounts for a significant portion of the market.
Parents include their children in the decision-making process because more than half of parents think that their children will use the home goods in question, and thus they must be included in the decision-making process.
Some parents are interested in their children’s views because they are important to them as a family. Others force their children to buy homes because they want them to learn how to make decisions on their own.
3. Teens who work make an average of $460 per month to spend on top of what their parents shell out.
On average, teens who work part-time get $460 a month to spend on their own expenses. In addition, their parents provide them with a monthly stipend. Teens continue to spend a large amount of money despite receiving money from their parents and from their employment.
There are about 25.6 million adolescents in the United States, according to a reliable source, and their parents spend approximately $4000 to $4500 each year on their children.
4. The Gen Z age group reports having spent less money in 2020 than any other year of the past two decades.
According to the source, the Covid-19 epidemic has caused the Gen Z (individuals between the ages of 10 and 19) to claim that they have spent less money in 2020 than they had in any other year in the previous two decades. Teenagers spend the least between August 2019 and September 2020, according to the data. This is a 9 percent decrease in spending as compared to the year before to the commencement of Covid-19.
5. Apparel spending came in at $507 per teen this year, down 11% from a year earlier.
In response to the epidemic, according to CNBC, expenditure on adolescent apparel has decreased by 11% since the beginning of 2009. In the year 2020, the average expenditure on clothing for a single adolescent will be $507.
These expenditure reductions were necessitated by the unpredictability of the circumstances brought forth by the Covid-19 disaster. Teens were concerned about their parents losing their jobs and the general state of the economy deteriorating.
6. Teenagers on average are spending $2,600 annually on food and clothes.
Teenagers today like to buy both online and in-store, according to research. They spend the majority of their money on food and clothing. The CNBC website reports that adolescents spend an average of $2,600 per year on food and clothing.
Male teenagers spend more money on meals, while female teenagers spend more money on clothing and accessories. Teens have their own shopping locations that they like visiting.
7. About 50 percent of teens say they’ve started saving money and around 40 percent have a budget for their finances.
According to the report, a TD Ameritrade study found that about 50% of teenagers had begun saving money and that approximately 40% have created a financial budget.
This implies that, despite the fact that they spend a significant portion of their earnings, teenagers are concerned about saving and making plans for the future. Budgeting is becoming more essential for them in all areas of their financial lives, whether it’s for their clothes, food, music, or social outings with their pals, for example.
The sad reality is that, apart from this 50 percent of teenagers, the other 50 percent are still ignorant of the need of money management, and their parents should educate themselves on this essential topic as well.
8. Gen Z is taking cues from fashion and beauty influencers when they make their purchases.
When it comes to making purchases, Generation Z is drawing inspiration from fashion and beauty influencers, according to a source quoted in Piper Sandler’s 41st biennial “Taking Stock with Teens” survey study. Since adolescents have access to the internet, they have conducted evaluations and research on the goods they want to purchase. As they evaluate goods for their audience, the influencers on the internet have a significant impact on their purchasing decisions. Consequently, teenagers are more inclined to purchase a product if it has received positive feedback.
9. Teens are poised to become the largest generation of consumers by 2020, responsible for up to $143 billion of direct spending.
Teens, according to the source, are on track to overtake baby boomers as the biggest generation of consumers by 2020, accounting for up to $143 billion in direct expenditure. As a result, they represent an excellent segment of the market for marketers to target and for businesses to penetrate. Teens, like adults, have a strong sense of brand loyalty.
10. Upper-income and average-income teens (average household income of $55,400), food and clothing remain the top two spending categories.
According to the source, food and clothes continue to be the top two expenditure categories for both upper- and middle-class teenagers (with an average family income of $55,400). In all of these categories, just a little difference has been seen between male and female teenagers. Male teenagers spent the most on food, followed by clothing, while female teenagers spent the most on clothing, followed by food.
11. 33 percent of teenage boys stated that the athletic apparel brand is their leading choice for clothing.
Statistics show that 33 percent of adolescent males say that the sports gear company is their first pick for clothes, as reported by Statista. When it comes to adolescent girls’ clothes, American Eagle is the most popular brand on the market today. If we’re talking about shoes, both boys and girls voted for Nike as their preferred footwear manufacturer.
Teenage guys have matured in their fashion sense, and they no longer want to dress in stale and outdated attire. They like to dress in outfits that are more athletic and comfortable, and Nike has the finest selection of boys apparel and gear available.
12. Amazon is where the most teens, 56%, choose to do their online shopping, but the survey saw a rise in female-centric platforms including SHEIN, Revolve and Princess Polly. Ninety-six percent of female teens said they shop online.
According to the source, Amazon is the preferred online shopping destination for the majority of teenagers (56 percent), but a growth in female-centric platforms such as SHEIN, Revolve, and Princess Polly has also been seen. Female teenagers said that they buy online in large numbers (96 percent).
13. In 2019 teens are spending more money than ever on video games.
in accordance with the source Teens are spending more money on video games in 2019 than they have ever done before. Teens are spending more money on video games after they have purchased food and clothes. On average, male teenagers spend 14 percent of their disposable income on video games, whether they are purchased or earned via other means. Because of the Covid-19 epidemic, people were forced to stay at home and play video games, which helped to increase their popularity. Video games were a source of pleasure for many people.
14. Upper-income teenage women spend a full 25% on clothing and 24% on food (24%), with personal care coming in third at 11%.
Females’ beauty and skin care products are a fundamental need, and they cannot live without them. In accordance with the source, upper-income adolescent women spend a whopping 25 percent on clothes and 24 percent on food, with personal care coming in third with 11 percent of their spending. These are the top three categories in which adolescent girls spend their money.
15. Teens reported spending just $87 on handbags, an all-time low.
Teens, according to the source, spent just $87 on handbags, which is a record low for them in this category. Handbags were very popular among teenagers in 2006, but their popularity has waned in recent years, and adolescents are spending relatively little money on handbags.
16. Teens spend 14X more of their money on food; 8X more on books and clothes; and twice as much on the entertainment super-category, which includes electronics, movie tickets, concerts, and video games.
Teens spend 14 times as much on food as middle-class adults do on food, 8 times as much on books and clothes as middle-class adults, and twice as much on the entertainment super-category (which includes electronics, movie tickets, concerts, and video games), according to the source who studied the data of middle-class adults with teens.
17. Teenagers spent only $275 on footwear this year as consumer spending in the demographic hit its lowest levels in two decades.
As has happened in every major sector as a result of the Covid-19 epidemic, the footwear industry has also suffered, with sales dropping by an average of 6 percent. Teens are known to spend a significant portion of their earnings on footwear. According to the source, Nike has surpassed all other sportswear and footwear brands in popularity among teenagers. Nike is the first footwear brand that 52 percent of adolescents choose as their first option.
18. Money knowledge is one of the top issues many teens struggle with.
On average, 17 percent of teenagers between the ages of 12 and 17 who claimed they understood how to handle their money, and 24 percent of teens who responded stated they did not know the difference between debit and credit cards, according to a survey conducted by the source. This is a very significant issue to which parents should pay close attention.
(Business News Daily)
19. Teens said they were motivated to learn about budgeting, saving and investing so they can pay their bills.
The source claims that an average of 88 percent of teenagers are driven to learn about budgeting, saving, and investing so that they can afford to pay their expenses.
20. Gen Z is on track to become the largest generation of consumers in just a few short years. They already represent up to $143 billion in buying power.
According to Forbes study, Generation Z is on pace to overtake the Baby Boomers as the biggest generation of consumers within a few short years. They already have a combined purchasing power of up to $143 billion.
Apart from having a significant effect on family shopping, this purchasing power comes solely from their own expenditures.
21. 38.7% teenagers spend from $1 to $15 on music per month.
According to Statista, on average, 38.7 percent of adolescents spend between $1 and $15, and 6.5 percent spend between $16 and $25 each month. 3.6 percent spend between $26 and $50, and 1 percent spend between $51 and $75. All of these sums of money are spent by adolescents on the purchase of their favorite music CDs. Teens account for 49% of people who do not purchase music records. Either they get their music for free from the internet or they borrow it from their friends to put onto their CDs.
22. Four in five parents said they’re more likely to shop at a retailer that makes it easy for them to involve their children.
According to the source, four out of every five parents indicated they are more inclined to buy at a store that makes it simple for them to include their children in the process. Parents report that their children and teenagers have a significant impact on their household buying and that they look forward to those merchants that are able to quickly catch their children’s interest.
Teenagers nowadays are different from teenagers five decades ago; they are not the same as teenagers today. Teens nowadays are aware of brands and social media, and they constitute a significant portion of the population that spends a significant portion of their earnings on clothing, food, footwear, cellphones, video games, and other items.
Teenagers get the majority of their financial support from their parents, but they also make a significant amount of money through part-time employment that they perform in conjunction with their education.
Teenage girls and boys spend the majority of their money on clothes and accessories. They are establishing their own unique style, and as they reach adolescence, they are more adventurous with their wardrobe choices.
Teenagers spend the most of their money on food, which is the second most expensive category. Teenagers typically experience increased hunger as they mature in age, and they enjoy a wide range of delectable foods as a result. They also need a variety of nutritional components in their diet, which explains why food is the second most expensive purchase for teenagers.
Besides the above-mentioned two main expenditures, teenage females lavish lavish amounts of money on cosmetic items, while teenage guys lavish lavish amounts of money on video games.
Teenagers are altering their purchasing priorities as a result of Covid-19, which has caused a decline in sales across all retail sectors. Teenagers are also shifting their spending priorities since the majority of their parents face the possibility of losing their employment.
Q1: Why are teenage expenditures increasing?
As a result of the digital era, teenagers are more likely to embrace or abandon companies, and they are heavily affected by social media. This is one of the reasons why people are willing to spend more money on their preferred companies. Teens have a strong brand loyalty and are spending more money on clothing and food than ever before.
Q2: How much money is spent on teenagers’ education?
Ans: There is a lot of competition among kids who want to go to college since they need to have higher grades in order to make it through the application process. Parents are doing all effort necessary to ensure that their children get the finest education available. Parents also contribute to extracurricular activities such as after-school and ezra programs.
Q3: How teens should spend their money?
Ans: Rather than just consuming money, it is preferable to invest it in things. Teens should spend their time and money on activities and experiences that will bring value and worth to their future lives. Apart from squandering all of their money on food and clothing, people might think about putting some of it down for the future.
Q4: Who spends more money working teens or non working teens?
Ans: Working teenagers place a higher value on their money since they have worked hard to acquire those dollars. They are more conscientious about what they spend their money on and how much they spend it on. Teens who get all of their financial support from their parents are more likely to spend. Nonetheless, this is dependent on an individual’s decision-making process and their prioritization of tasks.