Teens, Too, Are Tightening Budgets
Demo Is Cutting Back on Food and Excursions, Still Spending on DVDs and Music in Recession
In a recession, one group can usually be counted on to keep spending: teens. Their parents often pick up the tab for necessities, leaving them free to spend the income they earn from part-time jobs and birthday money from grandma on themselves. But in this downturn, a rather surprising phenomenon is emerging: tight-fisted teens.
According to research from Piper Jaffray, teens are becoming more attuned to the pinch on household budgets from the economy, which is having a “dramatic impact” on the $125 billion the demographic spends each year. Teens generally have about $5,000 a year burning a hole in their pockets, but they are spending about 14% less this spring than in spring ‘08.
A study from Euro RSCG Discovery found that 92% of females ages 13 to 21 said they are at least somewhat worried about the economy, while 87% of males are. Teens are now asking themselves, “Do I need that?” and “Can I wait to have that?” Those are questions that historically have been of little concern to an age group that spent money as fast as they made it.
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