Teen Spending

TEEN SPENDING

The teen market reaches over 100 billion dollars every year in the US alone. In every family regardless if it's a low or high income family, parents will contribute to the prominence of the teen market. Most teens will usually have one or two sources of income, either allowance from their parents or a job. The answer to this question isn't found by looking at the income of the family or social status, it's more a way of living and rearing that the parents have given their children. A way of proving or disproving this theory will be conducting a research on teen spending.

Take a regular middle to high class family. The teen on this family doesn't need to work in order to make a living, he doesn't have any financial responsibilities; meaning that every dollar he earns or gets will be immediately turned into disposable income. Unless if he has been taught differently by his parents, if he has a culture of saving or spending. I don't want to use any stereotypes, but many Jewish people have money but this doesn't mean that Jewish teens are the ones who spend the most; once again it depends on the culture and customs of each family.

Now look at a middle to low class family, excluding those who live in misery. On these families teens will usually get their money from working; unless the family is in a very bad economic shape, where the teen has to work in order to pay bills. Every extra dollar that the teen will make will be once again spent and usually would not be saved.

Once again you can see how the parents contribute to the prominence of the teen market, if the teen was taught to save for the future and be more careful with his spending; probably this market wouldn't have such importance. In order to prove or disprove this hypothesis research will have to be conducted in order to find out how parents contribute to the importance of the teen market; this