Teens Will Spent $169B In 2004.

Teens are projected to spend $169 billion in 2004, a slight decrease from 2003, according to the most recent study by Teenage Research Unlimited (TRU).

According to figures released in the Fall 2004 TRU Study, teens aged 12 to 19 spent an average of $91 per week this year, down from $103 last year. This weekly spending figure includes both teens’ own money and the cash they receive as gifts, allowance, and other spending money from parents.

Despite the decline, teen spending from early summer through fall was strong, indicating that the year’s overall decline was entirely driven by a reported 12% drop in weekly spending last winter.

According to TRU Vice President Michael Wood, teen consumers may have finally felt a pinch from the weakened economy, especially as part-time jobs typically available to teens became scarce.

“Teens entered 2004 with a more value-conscious mindset,” Wood explains. “They realize that quality and value aren’t mutually exclusive. Especially in tough economic times, teens can be a little frugal with their personal spending money while still demanding a great deal from their purchases.”

Still, teens’ outlook on their spending for 2005 appears optimistic; some 45% of respondents to The TRU Study expect that they’ll spend more money in 2005, 37% predict to spend about the same, and only 17% of teens surveyed anticipate that they’ll spend less than this year.

Additionally, despite this year’s decline, teen spending has increased an average of 5% per year over the past seven years, and the solid fall numbers, along with decent holiday season projections, point to a likely upswing in 2005.

“Though teens may have finally felt a ‘trickle down’ from the tough economy, they tend to remain more optimistic than adults because of their lack of fixed expenses,” Wood notes.