Teens and Their Money

In their 18th semi-annual national survey published by Piper Jaffray called, “Taking Stock with Teens,” they reported that total teen spending on fashion related items increased by two percent on a year-over-year basis and six percent sequentially, a notable improvement from the mid-teens percentage decline measured in the prior survey.

Surely the recession must be over now!

This spring, a collaborative team of research analysts the team visited 12 cities across the United States, surveying approximately 1,200 students with an average age of 16.3 years. In partnership with DECA (an international association of high school students), Piper Jaffray captured online survey responses from an additional 10,000 students with an average age of 16.2 years.

"We believe the fashion industry is in the early stages of a new cycle with traffic and conversion gradually improving as teenage consumers look to replenish key items in their wardrobes after under-spending on the category over the past three years," said Jeff Klinefelter, senior research analyst. In addition to year-over-year and sequential increases in fashion budgets, the survey found other spending trends such as shopping frequency improved versus spring and fall of 2008.

Do you still think that children are not a target for retailers? Arguable, the group with the least amount of financial education makes the best segment to work on that old impulse-buying, “gotta-have-it-now” mentality.

But wait, it gets better.

Piper Jaffray also surveyed parents, and the results indicate that spending on themselves and their teen increased sequentially and year-over-year. Apparel spending by parents for their teens was $1,141 compared to spring 2009 at $915 and fall 2008 at $1,085. Parents alluded to the fact that they felt they had to spend more on their teenagers because jobs for teenagers were more difficult to find and therefore, they can’t earn enough to support their lifestyle.

And the lawmakers think that the problem is credit cards ….