Hello again Jimwalden,
According to The TRU Study published by Teenage Research Unlimited
(TRU), teens will spend $159 billion this year.
?The figure represents a projection of total teen spending for 2005,
including teens? own cash and others? money that they spend?typically
their parents?.
Although teens? overall spending level registered a 6% decline from
one year ago, most 12- to 19-year-olds reported spending just as much
of their own money in 2005 as they did last year. In fact, nearly all
of the decrease seems to stem from less access to other people?s
money.?
TEENAGE RESEARCH UNLIMITED
http://www.teenresearch.com/PRview.cfm?edit_id=378
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?The teen market is thriving with diverse interests and immense buying
power. These young consumers spent $158 billion dollars in 2005.
However, this figure represents a 6% drop from 2004.
?Teen unemployment has kept many wallets thin, and those who work and
drive see much of their paychecks flow into their gas tanks. Also,
teen parents? fears about a housing bubble has hampered free
spending..?
NAA Business Analysis & Research Department
October 2005
http://www.naa.org/artpage.cfm?AID=6236&SID=2036
Download full report here:
Prepared by NAA Business Analysis & Research Department
October 2005
http://www.naa.org/marketscope/TargetingTeensBrief.pdf
Relevant excerpts:
?Most teens (58%) obtain money from their parents as a source of income.?
? Sixty-two percent of teens have a savings account.?
?Teens spend an average of $74 dollars per week; which includes their
own and other people?s money.?
Sources of Income:
Please refer to the table on page 8 of this report.
?Overall, teens spent $158 billion dollars on products and services in
2005. This kind of buying power suggests various ways of earning or
obtaining money. While 33% of teens earn money from odd jobs, most
teens (58%) receive money from their parents when they need it. Female
teens are more likely than male teens to receive gifts (43% vs. 34%),
and money (68% vs. 49%) from parents. Male teens are more likely than
female teens to have a part-time job (23% vs. 19%).?
Banking and Investing
?In addition to having various sources of income, teens are also
saving and investing their money. Sixty-two percent of teens have
their own savings account, and 15% own stocks or bonds.?
Teens 12-17
Type Of Investment %
Savings account 62
Checking account 11
CD 5
Stock or bonds 15
Spending Habits: See detailed table on page 9 of this report
?Teens planning to spend more money in the next 12 months greatly
outpace those that will spend less money. Older teens are more likely
than younger teens to increase their spending in the next 12 months.?
Weekly Expenditures: See more details on the table page 10 of this report
?Seventeen percent of teens spend $100 dollars or more of their own
and other people?s money on a weekly basis. On average, teens spend
$74 in a given week. Older teens spend more money per week than
younger teens. Males and females spend the same amount in a given
week.?
Credit Cards: See detailed table on page 10
?Though most teens do not have credit cards in their names, 8% of them
have access to their parent?s credit cards. Females seem to have more
influence than males with gaining access to their parent?s credit
cards. Nineteen-percent of teens would like to get a credit card in
their own name.?
On-line Purchasing: See table on page 11
?Forty-four percent of teens have purchased something on-line. Teens
spent an average of $73 dollars on their last on-line purchase. Males,
on average, spend more money on-line than females.?
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Top Items Teens 12-17 Plan to Purchase in The Next 12 Months
-------------------------------------------------------------
MP3 Player/IPod
Cell Phone
Digital Camera
Used Car
Contact Lenses
DVD Burner
Car Stereo
Video Camera
Sun Glasses
Digital Video Recorder
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Top ?What?s In? Products Among Teens 12-17
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DVDs
Cell phones
Cell phones with cameras
Digital cameras
MP3 players
Plasma TV?s
Hooded sweatshirts
Home video games
Athletic shoes
Recordable CD?s
Download report here:
Prepared by NAA Business Analysis & Research Department
Newspaper Association of America
October 2005
http://www.naa.org/marketscope/TargetingTeensBrief.pdf
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?Between 1990 and 2000, the number of teens ages 12 to 19 leaped by 17
percent to 32 million, far outpacing the rest of the population. That
figure is expected to continue to increase--to 33.5 million in 2010.?
?These teens are powerful consumers, given both their own spending and
their ability to influence family purchases. As a group, teens of all
ages spent a projected $112.5 billion dollars in 2003, with teens ages
16 to 17 possessing nearly $4,500 in discretionary income, often used
to buy their own clothing, entertainment, and music?
Mediapost.
http://publications.mediapost.com/index.cfm?fuseaction=Articles.showArticle&art_aid=370&art_search=
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?Teens are less dependent on income from their parents, prefer e-mail
and IM to online games and surf for Tommy Hilfiger rather than toys.?
EMarketer
http://web.archive.org/web/20040620185424/www.emarketer.com/Report.aspx?kids_may04
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Teens are a lucrative target market for wireless, where the latest
phones are must-have items.
?Chicago-based researcher Teenage Research Unlimited found that half
of teens own a wireless phone and estimates teens spent $169 billion
in 2004. Wireless carriers and device makers are moving to get a share
of even the pre-teen market. Firefly Mobile, for instance, is
marketing a GPS-capable wireless phone for children 8 to 12 years old,
which makes them easier to locate. Wireless carriers' family service
plans also have driven the use of wireless phones, Teitell says.?
Wireless Week: May 15, 2005
http://www.wirelessweek.com/article/CA601544.html?spacedesc=Departments
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Technology, including cell phones, continues to threaten the
traditional hold of the apparel industry on the spending priorities of
15- to 24-year-olds.
?According to a report from Packaged Facts, not only are younger
consumers the largest growth segment for the wireless industry, but
older teens are driving an exponential increase in text messaging
volumes. Packaged Facts estimates the youth market has a spending
power of $485 billion.?
Wireless Week: August 1, 2005
http://www.wirelessweek.com/article/CA631043.html?text=teens+billion
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?...teens and tweens interviewed by NOP World Technology say they're
most interested in MP3 Players and digital cameras, followed by people
finders, TV and video clips. Games trailed with 54 percent, just ahead
of instant messaging.?
?A Wireless World Forum mobileYouth 2005 report came to a similar
conclusion, projecting 2005 monthly average revenue per unit (ARPU) of
$1.10 from music versus only 20 cents from games. American youth will
spend $20 billion on mobile products and services in 2005, according
to that report.?
(?)
?Cell phone ownership has topped 16 million among teens and tweens
nationwide, with 44 percent of 10- to 18-year-olds in the United
States owning a cell phone.
Nationwide, 10- to 18-year-olds portray themselves as loyal customers.?
WirelessWeek
http://www.wirelessweek.com/article/CA514687.html?text=teens+billion
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?15 percent of teenagers surveyed in the spring said they were
interested in obtaining a credit card in their own name, down from 34
percent surveyed in 2000, according to a survey of 2,000 teenagers
conducted by Teenage Research Unlimited, a market research firm in
Northbrook, Ill. ?
?The portion who have credit cards in their name also declined, to 9
percent of teenagers from 11 percent in 2000. Children under the age
of 18 cannot legally apply for their own credit cards, but parents can
co-sign for them?
?The average college undergraduate has $2,169 in credit-card debt,
according to a 2005 report by the student lender Nellie Mae.?
?In 2004, the nation's 33 million teenagers, ages 12 to 19, accounted
for $169 billion in spending - not including spending on their behalf
or family purchases they may have influenced, according to Teenage
Research Unlimited. Much of that money bought clothing, snacks, shoes,
CDs, video games, MP3 players, computer equipment and cell phones.?
OCRegister
Sunday, September 25, 2005
Teens learning rites of plastic
http://www.ocregister.com/ocregister/money/stages/stage1/article_688649.php
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FAST FACTS ON TEEN CARDS:
?The fees attached to the teen credit cards can cost a teen hundreds
of dollars each year; money that could be spent elsewhere.?
Teen Advice
http://teenadvice.about.com/library/weekly/aa042201d.htm
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Cell Phones
?Four years ago, an estimated 5 percent of teenagers owned cell
phones. Last year, that figure jumped to about one-third of teens and
preteens ages 11 to 17, and researchers expect the number to reach
nearly half by 2007, according to Yankee Group.?
The firm ?estimates that by the end of this year, youths ages 11 to 24
will generate $21 billion in revenue for wireless carriers ? nearly a
quarter of the total cellular market.?
NPD Group Inc. ?found that cell phones are becoming an important
coming-of-age marker.?
?? in a recent study that teens ages 13 to 17 spent 10 percent less in
the past year on clothing, largely shifting their spending to cell
phones.?
?Best of all, say carriers, is that younger audiences are more likely
than adults to use costly new cell phone features such as cameras,
games and videos, thus running up phone bills.?
Wahington Post: May 2004
http://www.theeagle.com/businesstechnology/050204teencellphones.htm
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Gift Cards
Survey Reveals High Teen Gift Card Use; 80 Percent See Cards as a First-Choice Gift
?According to the survey, teens appear to be generous: almost
two-thirds of teens spend up to 20 percent of their disposable income
on gifts. And they like gift cards. More than 80 percent saw the cards
as a gift of first choice, not a fall-back item if nothing else could
be found. The most popular average gift card values are between $10
and $24, and $25 to $49.?
(?)
?Apparel and music retailers were the preferred retail categories
where teens purchase gift cards (nearly 70 percent of purchases).
Retailers selling electronics and books, restaurants, video rental
chains and movie theatres were reported as the second most frequented
places for teens to buy gift cards for friends and family. ?
? 75 percent of teenagers report spending more than the face value of
the gift card; this compares to 79 percent of adults who say they
usually spend something more than the card's value.?
Ceridian: May 2004
http://www.ceridian.com/corp/article/0,2868,11178-54043,00.html
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?Findings from a survey conducted by the Center for Teen Insight in
March 2004 present that gift card use is high in this new generation.
80% of teens see gift cards as a first-choice gift.
90% of teens have received a gift card.
Two-thirds of teens have purchased one or more gift cards during the
last 12 months.
75% of teenagers report spending more than the face value of the gift card.?
Gift Certificate Center, Inc.
http://www.giftcertificatecenter.com/eNewsletters/eNewsletter2.htm
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?Prepaid debit cards for teens are one of the fastest-growing segments
for Visa, MasterCard, Discover, and American Express. According to
TowerGroup, bank-issued gift cards will reach $300 billion in sales
next year. Another study found that nearly 80% of those ages 18 to 34
have used a prepaid card.?
(?)
?According to Cardweb.com, the average gift card/prepaid credit card
balance is $50.?
The Motley Fool
http://www.fool.com/news/commentary/2004/commentary04092804.htm
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?According to a study by Jay Zagorsky, about half of teenagers between
the ages of 12-16 receive an allowance. The average among those that
get an allowance is $50 a week. The amount of allowance a child
receives is directly related to the income of the family. Households
with an income in the $30,000-40,000 range give an average of $21 a
week in allowance, while families over the $100,000 mark give $175 a
week ( Brazil ). The other way in which teens supplement their income
is through part-time jobs. These can be jobs at a store or restaurant,
or just providing services for friends or neighbors, such as lawn
mowing and babysitting. The Bureau of Labor Statistics estimates that
half of all teenagers hold a part-time job (Goff)?.
Let?s Talk Business: June 2004
http://www.uwex.edu/ces/cced/lets/0406ltb.html
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From Coinstar
National Survey First to Reveal Shifting Gift Card Attitudes; Young
People Drive Move from Gifts to Gift Cards.
Read more here:
http://www.coinstar.com/US/PressReleases/721198?OpenDocument
?2nd Annual Coinstar(R) Teen Poll finds teens are challenged by
limited spending options and difficulty staying within monthly
wireless plan minutes
Prepaid wireless and cash cards may be a solution teens and parents can agree
on to better manage cellular plans and spending.?
Read the complete article here:
http://64.233.161.104/search?q=cache:43jrUmC7o5IJ:coinstar.com/US/PressReleases/603613%3FOpenDocument+teen+spending+clothing+electronic+phones&hl=en
First Coinstar Teens Talk Poll Reveals Adolescents Spend At Least $264 Each Month
http://www.coinstar.com/US/PressReleases/453946?OpenDocument
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Teens have always been at the leading edge of setting trends in the
fashion industry, but besides being stylish dressers, teens are now
looking for value,
?Today's teens are spending much of their money at value-based stores
such as mass merchants, like Wal-Mart and Target, instead of trendy
mall retailers. Teens are bargain hunters. Three out of four teenagers
tell NPD they shop at retailers that have the lowest prices and 73
percent say they look for sales.?
?Average amount of money teens report spending per week: About $50
Number one source where teens get their money: Allowance from parents/guardian
Number one item teens are saving for: College
Number one item purchased by or for a teen: Clothing?
Teens Spending Overall
?According to the Buying Habits of Teens and Tweens Report, teens (age
13-17) tell NPD they spend about $24 per week of their own money. They
also report their parents/guardians spend an additional $24 per week
on items for them - totaling almost $50 a week. Teens are funding most
of their own clothing, entertainment and music/CD purchases, while mom
and dad are keeping them connected by paying for things like Internet
access monthly fees and monthly cell phone charges.?
(?)
Teens are Banking on College
?Among the teens surveyed, eight out of ten claim they're currently
saving some of their money for future use. Interestingly, the number
one item teens are saving for is college (53 percent). Among teenage
girls, nearly two out of three say they're putting money aside for
college, which is significantly higher that the proportion of teenage
boys who report saving for college (64 percent vs. 40 percent).?
(?)
?In addition to college, teenage girls are more likely to report
saving their money to buy clothing, clothing accessories,
shoes/sneakers, music/CD's, jewelry and cosmetics/perfume. Boys are
more likely to be saving for electronics, computer games and computer
hardware.?
NPD Fashion World: March 18, 2004
http://www.npdfashionworld.com/fashionServlet?nextpage=pr_body.html&content_id=842
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The Teen Market Profile Publication by the MPA provides interesting information.
Download the complete report here:
http://www.magazine.org/content/files/teenprofile04.pdf
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Teens Cautious, but Curious, about Credit Cards
Read the press release from Tenn Research Unlimited here:
http://www.teenresearch.com/PRview.cfm?edit_id=280
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Additional information that might interest you
==============================================
?According to the JumpStart Coalition for Personal Financial Literacy,
an educational organization, nearly a third of high school seniors
reported having a credit card of their own or one co-signed by a
parent.
Because young people under 18 technically can't apply for a credit
card without a parent's co-signature, it's hard to know precisely how
many teens have credit and how many are already in debt.?
Money Central
How teens get sucked into credit-card debt
http://moneycentral.msn.com/content/Savinganddebt/Managedebt/P125779.asp
Jump$tart Coalition
?First convened in December, 1995, the Jump$tart Coalition for
Personal Financial Literacy determined that the average student who
graduates from high school lacks basic skills in the management of
personal financial affairs. Many are unable to balance a checkbook and
most simply have no insight into the basic survival principles
involved with earning, spending, saving and investing.
Many young people fail in the management of their first consumer
credit experience, establish bad financial management habits, and
stumble through their lives learning by trial and error..?
For the first time since the Jump$tart Coalition began to measure the
financial literacy of high school seniors in 1997, average scores have
stopped falling and appear to have turned around. Lewis Mandell,
Ph.D., professor of Finance and Managerial Economics, SUNY Buffalo,
and author of this important new book, believes that the turnaround is
not only meaningful but also sustainable.
Financial Literacy:
Are We Improving?
$14.95 per copy
http://www.jumpstart.org/
The Results of the 2004 National Jump$tart Coalition Survey are available.
CLICK HERE TO ORDER
https://www.jumpstartcoalition.org/orderform/index.cfm
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Search criteria:
Teen OR teenage spending habits
Spent OR spend million OR billion
Credit OR debit OR gift
teen buying habits
I hope the information provided is helpful!
Best regards,
Bobbie7 |
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