Survey: Teens Slated To Spend Lowest Amount Since 2011

New data has found that American teens are estimated to spend $2,371 per year — the lowest level for the age group since the fall of 2011. A survey by Piper Jaffray gathered the data from 9,500 teens across 42 U.S. states, with an average age of 15.8 years. It found that 32 percent of teens believe the economy is getting worse, up from the 25 percent reported in the fall of 2018. That belief has led them to be more cautious with their spending.

“Our Fall Teen Survey continues to validate several characteristics of this digitally native demographic: 83 percent of teens have an iPhone, 52 percent of teens claim Amazon as their favorite online shopping website, and we saw an acceleration of VSCO and TikTok mentions,” said Erinn Murphy, Piper Jaffray senior research analyst, according to a report. “Importantly, however, we saw the lowest teen spending levels in eight years. The two most challenged categories were handbags and cosmetics, as females reprioritize their spending with eating out and footwear/apparel. Broadly, the casualization of fashion continues: Nike gained share within its No. 1 rank, and lululemon hit a new survey high as the No. 7 preferred apparel brand. Within footwear, Crocs also achieved a new survey record as the 7th preferred footwear brand.”

Females spend most of their money on clothing, with many preferring athletic brands over preppy designers like Sperry, Ralph Lauren and Vineyard Vines. Accessories spending hit a record low, while cosmetics spending fell 20 percent over last year to the lowest levels in more than nine years. When they do shop for makeup, 91 percent of female teens prefer to do so in a store, rather than online. Ulta Beauty is still the preferred beauty destination against Sephora for the second survey in a row.

Handbags don’t seem to be the same status symbol they once were, with female teens reporting that they spend an average of $90 per year on handbags, compared to peak spending of $197 per year.

When it comes to male teens, food continues to be their top spending category, with Chick-fil-A the top restaurant for four surveys.

Teens also spend 37 percent of their daily video consumption on YouTube, ahead of Netflix at 35 percent.