American Youth Wielding More Household Buying Power…

RoperASW announced results of its 2003 Roper Youth Report examining the purchasing power of American teens and tweens.
The study uncovers significant increases in the number of children and parents who say 8-17 year olds are playing a larger role in household purchasing decisions ranging from food to entertainment to media.

“Purchasing clout among today’s kids has expanded beyond the traditional borders of snack food and video games,” said Ed Keller, CEO of RoperASW. “We are beginning to see children as young as eight having an impact on new, more sophisticated areas like home design.”

Pocket Change… Allowances Down, But Spending Not Out

Children may have their parents’ ear regarding household purchases, but that doesn’t mean they have direct access to their wallets. In fact, the median weekly allowance among 8-12 year olds has dropped by half from $10 in 2002 to $5 in 2003. Thirteen to 17 year olds are also feeling the pinch with average weekly allowances dropping from $20 in 2002 to $15 this year. Less money in their pockets isn’t stopping teens from going to the mall or spending. Nine out of ten 8-17 year olds say they go to the mall at least “occasionally” up slightly from last year, with one-third saying they go “fairly often” and 10% going “very often.”

According to the Youth Report, more 8 – 17 year olds are saving up for things they want to purchase such as clothes (up 8% from last year to 32%), shoes (up 5% from last year to 15%) and music (up 3% from last year to 13%). Additionally, one-quarter report they are holding on to their money because “it’s good to save,” up from 21% last year. However, saving for college or school has dropped to 29% from 34% last year.

Leading in the area of most recent purchases kids have made with their own money were candy (35%), soda and soft drinks (26%), clothes (25%) and food (21%). When asked the next thing they plan to buy with their money, clothing (29%), video games (16%) and CD’s (15%) topped the list.

“The sales cycle may be longer, but kids today continue to be strong consumers,” added Keller. “Delayed gratification isn’t easy, especially in today’s fast paced world. Marketers must appeal to and applaud their ability to save up for the things they want to purchase.”

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