Teen consumers are an important part of the U.S. economy. Although teens curtailed spending due to the recession and its lingering effects, they held back less than other groups and were the quickest to return to the check-out counter when the market improved. Because most teens are dependent on their parents, they don’t have the burdens of credit card debt, student loan bills, and mortgage payments, which enables them to spend more impulsively and frivolously. Teens are in the process of forming their own identity and often make purchases to define themselves in the context of their peers. Therefore, the products and services that are best geared for teens are those that reflect a certain attitude or statement about the wearer or user. This report will closely examine:

• the impact of teen spending on the economy; teens’ source of funding and primary payment methods; spending priorities, and how their spending habits have changed

• how the recession has affected teen spending

• how teen priorities appear to have shifted from short-term gains from employment to longer-term benefits of education

• the demographics of the teen population and how the makeup of this group will affect the teen markets

• challenges markets face in promoting products to teens, and what can be done in the face of these challenges

• innovations in marketing directed toward teens, and types of marketing efforts that resonate most

• the role of teen gender and age in: spending priorities, shopping and food/snack purchase venues, attitudes toward fashion, and online ordering habits

• teens’ future educational plans, college funding plans, and financial attitudes.

This report builds on the analysis presented in Mintel’s Teens and Finance—U.S., January 2009, Spending Power of the Teen Consumer—U.S., April 2008, as well as the 2006 report of the same title and a previous edition published in 2004.

The focus of this report is the U.S. teen consumer aged 12-17. It examines teen spending and purchasing habits, what they shop for, spending priorities, what plans are for the summer, plans for attending and financing college, and teen attitudes toward finances.

Value figures throughout this report are at retail selling prices (rsp) excluding sales tax unless otherwise stated.

• Spending section: Based on data from the U.S. Census Bureau, CE Survey and Experian Simmons Consumer Research Teen Study

For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to explore teenagers’ spending power, habits, and priorities. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted May 16-20, 2011, among a nationally representative sample of 702 teenagers aged 12-17 with access to the internet.

Mintel has also analyzed data from Experian Simmons Consumer Research, using its National Consumer Study (NCS) Teen Study.

The Experian Simmons Teen Study was carried out October 2009-December 2010, and the results are based on the sample of 1,811 teenagers aged 12-17, with results weighted to represent the U.S. teen population.

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (white, black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

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The following abbreviations are used in this report.

Civilian non-institutional population: those living in the U.S., aged 16 years or older, who are not inmates of an institution (criminal, mental, or other types of facilities), and who are not active duty military personnel.

Generations are discussed within this report, and they are defined as:

* also known as Generation Y or Echo Boomers

** previously known as Post-Millennials

In order to provide an inflation-adjusted price value for markets Mintel uses the CPI to deflate current prices. The CPI is defined as follows: