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US Teens Spend more, Worry Less
American teenagers spent $175 billion in 2003, a three percent increase from 2002, according to a new study by specialists Teenage Research Unlimited (TRU). The teen population is rapidly expanding and its spending appears relatively recession-proof.
According to figures from the October 2003 TRU Study, teens (defined by TRU as those aged 12 to 19) spent an average of $103 per week last year. This amount takes into account both teens' own money and the cash they receive from sources including gifts, odd jobs, and parents. The aggregate increase is partially due to a rapidly expanding teen population. The Census Bureau estimated the US teen population numbered just under 33m in 2003.
According to TRU, teens tend to be less sensitive to recessionary pressure than do adults. Teens - who boast a wide variety of income sources and relatively few financial obligations - spent five percent more out of their own pocket in 2003 than in 2002. Their parents, with one eye on economic uncertainty, kept a tighter reign on the money they gave to teens: spending of parents' money remained flat from 2002.
According to TRU Vice President Michael Wood, 'the teen segment tends to have a much bolder attitude toward spending than does the general population' - thanks to a combination of high disposable income and fewer recurring debts. Accordingly, some 45% of teens predict they will spend more money in 2004, and 34% expect to spend about the same.
'This unbridled consumer optimism, paired with a teen population that will continue growing through the year 2010, makes teens an incredibly powerful consumer group', Wood says. 'Marketers are increasingly aware of this fact, and so are teens. Young people have grown accustomed to marketers' attention, and they are demanding more of the messages directed toward them. Teen marketing campaigns must be immediately engaging - as well as lifestyle-relevant - or they'll be dismissed immediately'.
TRU polls more than 2,000 teens twice yearly on trends, lifestyles, attitudes, and consumer behavior. The syndicated study is the largest of its type. Including focus groups, depths and other methods, TRU has interviewed more than half a million teenagers over the past 22 years. More information is available from TRU's Web site at www.teenresearch.com
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