Author: Mintel Group Ltd.
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Spending Habits of the Teen Consumer - US - August 2011
Scope and Themes
 
What you need to know
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.

Definition
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.

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

Consumer survey data
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. 

Advertising creative 
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VMS tracks competitive advertising content and activity in key industries across a broad spectrum of local and national media. VMS also captures and measures local and national editorial activity related to industries and brands to provide marketers with a unique view of the total media environment in which they compete.

Abbreviations and terms
Abbreviations
The following abbreviations are used in this report. 

AAFA | American Apparel and Footwear Association
BLS | Bureau of Labor Statistics
CDC | Centers for Disease Control and Prevention
CPI | Consumer Price Index
DOL | U.S. Department of Labor
FLSA | Fair Labor Standards Act
FDA | Food and Drug Administration
FDIC | Federal Deposit Insurance Corporation
GGP | General Growth Properties
ICSC | International Council of Shopping Centers
NCS/NHCS | National Consumer Study/National Hispanic Consumer Study (Experian Simmons)
NPR | National Public Radio
NRF | National Retail Federation
RIM | Research in Motion
rsp | Retail selling price
RTD | Ready to drink

Terms
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 activeduty military personnel. 

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

World War II | The generation born in 1932 or before. In 2011, members of this generation are aged 79 or older.
Swing Generation | The generation born between 1933 and 1945. In 2011, members of the Swing Generation are between the ages of 66 and 78.
Baby Boomers | The generation born between 1946 and 1964. In 2011, Baby Boomers are between the ages of 47 and 65.
Generation X | The generation born between 1965 and 1976. In 2011, Generation Xers are between the ages of 35 and 46.
Millennials* | The generation born between 1977 and 1994. In 2011, Millennials are between the ages of 17 and 34.
Matrix Generation** | The generation born from 1995 to present. In 2011, Matrices are aged 16 or younger.

* 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:

CPI

The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

The CPI and its components are typically used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts. In addition, and in Mintel reports, the CPI is used as a deflator of the value of the consumer’s dollar to find its purchasing power. The purchasing power of the consumer’s dollar measures the change in the value to the consumer of goods and services that a dollar will buy at different dates. 

The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase, at today’s prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period. It is also the best measure to use to translate retail sales into real or inflation-free dollars.

Based on Bureau of Labor Statistics definition.

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