Teens Spent $170B In 2002.

Despite a lackluster U.S. economy, teens spent $170 billion in 2002, down only marginally from the year before according to a study by Teenage Research Unlimited (TRU). In fact, compared to 2000 when teens spent $155 billion, teen spending has shown significant gains.

According to figures released in The TRU Study, teen consumers spent an average of $101 per week last year. This spending total combines teens’ own discretionary spending and any spending they do on their parents’ behalf, whether for personal or household purchases.

TRU polls more than 2,000 demographically representative teens (ages 12 through 19) to compile its annual teen-spending snapshot. TRU Vice President Michael Wood says the unexpectedly robust spending figures result from two factors peculiar to the teen market. First, teens get their income from a variety of sources, including parental handouts, gifts, odd jobs, and part-time employment. This diversification means that they’re more sheltered from the cyclical nature of the economy.

“If teens can’t find a part-time job, they can always mow someone’s lawn or shovel a driveway,” Wood explains. “If that doesn’t work, there’s always mom and dad. We’ve repeatedly found that parents—more so mom than dad—hate to say ‘no’ to teens. They’ll likely go without something themselves than deny their children.”

Such consistent access to cash means that teens have remained a great deal more optimistic about their ability to continue spending than have adults. Even as adult consumer confidence wavers, almost half of teens (48%) assume they’ll spend more money over the next 12 months than they did in the preceding year. One third of teens (34%) think they’ll spend the same as last year, and a mere 16% figure they’ll spend less.

The second reason the teen market has maintained strength in the face of bad economic news is that the teen population continues to grow.

“As the number of teens increases, the effect of more individuals spending slightly less money per-capita doesn’t negatively affect the overall spending figures. The population boom more than compensates for any minor setback in teen spending,” Wood said.

The U.S. population currently includes more than 32 million teens aged 12 to 19. This population has increased steadily since 1992, as children of Baby Boomers have entered their teen years.