As the parent of a nearly teenaged kid, I've noticed that even if you raise your kids money conscious, teenagers have their own way of doing things and are likely to make choices that you wouldn't consider to be financially savvy. However, I'm certain that parents' money lessons aren't in vain, and what we teach kids and teenagers has the possibility of rubbing off on their spending habits, and prevent them from getting into financial trouble already at a young age. This post from a reader explains what teen spending habits statistically are, and it is a wake up call what we are up against, to teach our kids money smarts while their social circles is telling them to spend it all.
Teenagers are assumed to be the primary consumers of gadgets, cosmetics, entertainment, and clothing, etc. That is why marketers are working hard to reach and pursue this segment of the market that can give them the most fruitful results because they spend a significant amount of their total earning or saving.
Some teenagers are applying for a personal loan to pay their bills! Most of the licensed money lenders are providing these loans for young people. You can search for the loans that are offered by the financial institutions, banks and credit unions. The requirements for loans for young people are quite similar to standard loans. To check whether the lender is offering a loan to students or you are looking for a bad credit loan, you can ask them directly to visit your bank or an online lender.
The following are some of the significant areas where teenagers spend most of their money. Let us dig into them more to get a better understanding of the spending trends.
Online Shopping
Online shopping is the first and foremost area, where teenagers spend most of their money. Several websites are supposed to be teenage favorites. One of the most popular online shopping websites is Amazon, eBay, and iTunes, etc. Among one in every five teenagers choose to shop from Amazon. The increasing trend of online shopping represents that most teenagers love to shop at the ease of their home, sitting in their cozy loungers or lying between the sheets. Through these sites, they can purchase anything they like on social media.
The world's most valued possessions are on their tips, and they can buy them without any hassle. Another attractive feature of online shopping is purchasing the items on credit. The kids can borrow money online through credit cards and make credit payments to buy the number of their favourite items on several websites. This is the fact that compels them to spend the major portion of their income buying online.
Beauty Products and Cosmetics
As we have told you earlier that beauty products and make-up accessories also hit the teenager's shopping list. The research reveals that about 70% of male teenagers and 90% of female teenagers use beauty products like shampoos, perfumes, beauty soaps cologne, hair care products, and body care products, etc. Such products not only enhance self-confidence but also invoke the feeling of self-obsession and assurance that has potent effects on their lifestyle.
Advanced Gadgets and Toys
This is another category that triggers the teenage spending trend effectively. All the entertainment comes under this group of items. Most teenagers love to spend time sitting idle in front of their television screens, watching their favorite movies and serials while some choose to go to the Cinemas.
Nowadays, Netflix is used by most of the teenagers who love to watch unique content. Moreover, Social media platforms like Snapchat, Facebook and Instagram are getting popular day by day, encouraging the new generation to buy more upgraded smart devices.
Some of the teenagers are gaming aficionados and invest a major portion of their money for gaming gadgets. Teenagers also spend a major amount of their money on smartphone apps and electronic products that provide great utility. The most revolutionary is the smartphone that has made their life not less than a heaven. The iPhone is the most loved possession that every teenager dreams of, and it costs about 1000$ to 1500$ each year.
Junk Food, Vending Machines, and other Food items
Most of the children of this age love to spend money on the food items, so it is one of the prime spending categories constituting about 25% of the total spending. Kids love KFC, McDonald's, and Starbucks, etc. and those who are the freaky foodies want to get their food in no time that is why they not only spend a lot of money to pay the delivery cost but also bust the budget at the vending machines.
Luxurious Dates and Hangouts
Hanging out and dating has become one of the most trending hobbies of teenagers nowadays. They can get broke just in few weekends because of the expensive date or a costly hangout that can make their day. A date may constitute an entertaining visit to a gaming zone or the cinema followed with a classy cup of coffee or an expensive dine-in ending up investing more to drive the car around the city.
Chic Outfits and Shoes
Teens love to wear fashionable apparel and carry accessories that their friends may admire. As fashion keeps changing, the choices as well, and that is the reason the spending increases. The teenagers spend most of the cash in buying the trendy outfits to fill their wardrobes with what they love to wear.
Vacation trips
What is better than rushing to a fun-filled trip that makes you forget all the worries? The kids of this age love to do so. They spend a considerable amount of money on leisure activities like going out of the city, hiking, camping and so on. All these activities consume a considerable amount of money.
Cars and their Accessories
Cars are the most valued possessions the teenagers usually keep and they also spend a substantial amount of cash on their repair and maintenance. Moreover, some are conscious of their car's accessories as well. Ranging from the expensive upgraded classy rims to the exotic seat covers, everything is costly enough to consume a significant amount of cash.
Sports Goods Athletic Apparels
The majority of the kids are die-hard fans of outdoor sports like football, baseball, and others. The brands like Nike and Adidas are offering great sportswear that is very famous among teenagers. These clothes are available in vibrant colors and comfortable fabrics that attract the user's attention.
Designer Bags
Designer bags rank last in my list but still, they consume the pocket money of most of the female teenagers. Coach, Michael Kors, Channel, Kate Spade, and so on are the most popular brands making trendy and cool bags. These bags are exotic and made-up of high-quality material with stunning design catching a girl's attention for sure.
