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There are around 27.7 million teenagers living in the United States who spend an estimated $63 billion annually.
American teens are voracious consumers of digital media, and they do much of their shopping with online retailers. Meanwhile, marketing to teenagers means being aware of the influencers and causes they care most about. Survey data finds that teens today have varied interests, from social causes like environmentalism to musical icons like Taylor Swift, from online streaming services like Netflix to fast food behemoths like Chick-fil-A.
For anyone looking to better understand teenage consumers, it’s important to take a look at what teenagers buy, where they get their money and what their financial goals and worries are.
Note: We reference the most updated data available, but sometimes that information is from several years ago—check each individual source for specifics.
Though food has consistently dominated teenage spending habits for nearly a decade, clothing now reigns supreme as the biggest purchasing priority for teens. The popularity of athletic brands like Nike, Adidas and Lululemon highlights the trend toward casual clothing, perhaps spurred on by the remote school environment throughout the pandemic.
Food spending remains important for teenagers, however, and Chick-fil-A overtook Starbucks as the top restaurant for this age group. Starbucks’ drop could be attributed to its increasingly slower lines thanks to the introduction of mobile orders and the subsequent service slowdown.
The entertainment, media and video game industries have increased in popularity in the past year. The ongoing effects of the COVID-19 pandemic have led to many more teenagers spending a majority of their time at home. Therefore, their spending is more directed toward these industries rather than concerts and travel. Likewise, online shopping has generated more attraction than shopping in person.
Top brands for teenagers:
Teens know what they like and spend their money accordingly. You can get a closer look at teenage buying preferences below.
Teenagers earn money through a mix of gifts, allowance and jobs. Although their spending power isn’t as high in comparison to other groups’, teens still hold a significant amount of spending power. Read on to see how employment trends have shaped teen spending.
Even at a young age, teenagers are keen on financial goals and have high expectations for the future. Many believe that they’ll reach milestones like buying a home and paying off their student loans in their 30s. However, some financial concerns still linger for teens who grew up in the Great Recession and have seen their formative years defined by the COVID-19 pandemic.
Teenage members of Generation Z are setting themselves up as a financially strong generation. Continued credit education is crucial for these teens as they get older and start building their credit. The decisions teens make at this age are important to watch as they mature into adulthood and make bigger financial decisions—in the meantime, it’s important that these teens practice good financial hygiene like regularly reading their credit reports and reviewing their bank statements for discrepancies.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
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