The average teenager spends $ 2,600 per year. That's 42 million teenagers in the United States spending their money on a variety of products. Teenagers are intelligent and are learning from the struggles of those who preceded them. With this in mind, we can see that they are opening their financial horizons by earning and saving earlier in their lives. However, this does not mean that they are completely frugal.
These digital natives like things fast and are sensitive to authenticity. These values make them quick to eliminate brands if they provide a slow service or unethical practices. They love food and they like the highest quality products as long as they get the best value. All the complexities in teenagers' spending habits make this demographic an important group to observe.
2020 is a great year for teenagers and we will deepen how they earn and spend money in addition to their goals and fears.
What do teenagers buy?
Food is the main spending priority for teenagers, as they continue to spend more in this category each year. Chick-fil-A surpassed Starbucks as the best restaurant for teenagers. The fall of Starbucks could be attributed to its increasingly slow lines thanks to the introduction of mobile orders and the subsequent deceleration of the service. Teenagers are particularly sensitive to slow service since they have grown up in a completely digital landscape.
Clothing, on the other hand, has seen a decrease in adolescent spending. Streetwear brands such as Supreme are declining in popularity in addition to "preppy" brands such as Polo and Vineyard Vines. Teenagers show more interest in European luxury brands such as Off-White.
The best brands for teenagers:
- Clothing Brand: Nike
- Bag brand: Michael Kors
- Shoe brand: Nike
- Shopping website: Amazon
- Beauty Destination: Ulta
- Cosmetics brand: Tarte
Teenagers know what types of brands they like and what they like to buy. You can take a closer look at the shopping preferences for teenagers below.
Where do teenagers get their money?
Teenagers earn money through a combination of gifts, grants and jobs. Although the purchasing power is not so high compared to other groups, teenagers still have a significant amount of purchasing power. Studies also show that today's teenagers are prepared to win when they enter college and have multiple income streams. This includes internships and ventures in the economy of the concert. Learn exactly how teenagers get their money with these statistics below.
- On average, teenagers have their first job at age 14.Source: TD Ameritrade)
- 50 percent of teenagers working outside the home each earn an average of $ 465. (Source: TD Ameritrade)
- 47 percent of teenagers in college or those who currently expect to go to college or plan to work in concert economics. (Source: TD Ameritrade)
- 33 percent of teenagers in college or are currently looking forward to college or plan to work in a paid internship throughout the year. (Source: TD Ameritrade)
Goals and financial expectations for teenagers
Even at an early age, teenagers are interested in financial goals and have high expectations for the future. Many believe they will reach milestones such as owning a home and paying off their student loans at age 30. In addition, many teenagers are already saving money for both small purchases (such as cell phones) and large expenses (such as college). It is likely that their parents are most responsible for this experience, as many teenagers rely on their parents for financial advice.
Teenage Financial Concerns
Teenagers have heard the news about their millenary counterparts who live at home after college, so many of their concerns include not being able to live alone and not being able to pay for college. This is reflected in the amount of money they are saving and how early they are thinking about their finances.
Today's teenagers are establishing themselves as a financially strong generation. Continuing credit education is crucial for these teenagers as they grow and begin to build their credit. All the decisions that teenagers make at this early age make it more important to observe them as they mature to adulthood and make more important financial decisions. Meanwhile, it is important that these teenagers practice good financial hygiene, such as reading their credit report regularly and checking their bank statements for discrepancies.