Teens are usually a demographic that can be counted on to continue spending even in rough economic times. But this downturn is different, teens are becoming quite tight-fisted, according to research from Piper Jaffray.
Teens generally have around $5,000 spending cash a year. The research shows that they are spending about 14% less this spring than during the same period in 2008. This new found teen savings model is really going to have an effect on the $125 billion teen spending industry.
Several factors are listed in this article as reasons for teens tightening their wallets, including a high unemployment picture for 16 to 19 year olds.
According to Piper Jaffray, teens have cut spending on apparel, beauty, food, movies, concerts and sporting events. What they haven’t gone without is music, DVDs, video games and video game consoles. Jaffray believes that Apple, Xbox, Electronic Arts, Nike and Starbucks don’t have to start worrying about the teens leaving them just yet.
For the full article about the new way teens are spending, go to: http://adage.com/article?article_id=136253