Attitudes and Behaviors of American Youth - Spending Habits

Spending by teens in fall 2003 averaged $1,742 annually, up from $1,400 in spring 2003 and $1,536 in fall 2001, according to U.S. Bancorp Piper Jaffray. In fall 2003 girls spent an average of $1,964, compared with $1,572 in spring 2003 and $1,342 in fall 2002. Boys' spending fell from $1,661 in spring 2002 to $834 in fall 2003. Spending trends for females on apparel increased 25% over spring 2003. Spending trends for males on apparel declined 10% over spring 2003. While The New York Times (Ruth Le Ferla, "Boys to Men: Fashion Pack Turns Younger," July 14, 2002) reported in 2002 that boys were catching up to girls in money spent on clothing, according to the Piper Jaffray survey, by fall 2003 that trend seemed to be reversing.

According to a press release from the U.S. Department of the Treasury's Office of Public Affairs (November 13, 2000), never before in history have children had more money of their own to spend and never before have children had more influence over the spending decisions of their families. Children between the ages of four and twelve influence an estimated $190 billion in purchases and teenagers spend another $140 billion of their own and their parents' money. Despite the control teenagers exert over money, however, their financial literacy is quite low. In its 2004 survey of high school seniors, the Jump$tart Coalition for Personal Financial Literacy found that 65.5% of high school seniors failed a test of financial literacy. Although the failing rate was still huge, it was down for the first time since 1997.