Technology and Entertainment is where Teens Spend Their Money

by Rachel Baker on May 25, 2014

Apparently, today’s teens are okay with the non-branded look and would rather spend their money on their technology and the entertainment experiences of eating out, seeing movies and going to music concerts.

“In 2005, fashion apparel was how you signaled your popularity. Today it’s food,” Stephanie Wissink, senior research analyst at Piper Jaffray, told the International Business Times.

“For the first time ever in 13 years of research, food — the experience of dining out — is prioritized over product,” Wissink said. In 2013, 21 percent of teens’ expenditures went to clothing. Food, events, movies and music accounted for 33 percent of their spending.

When they do shop, young consumers are looking for gadgets rather than clothes. “Fashion apparel for the teenager is not the first considered purchase,” Wissink said. Teens see electronics as “popularity devices, not utilities.”

“Technology is providing increasingly strong competition for teens’ and young adults’ spending money,” said Marcia Flicker, associate professor in Business Enterprise at Fordham University. “Will they buy the iPhone 6 when it comes out, or be stuck with the slower iPhone 5? Or, even worse, still have an iPhone 4?” While the way teenagers communicate their social status has changed, its importance hasn’t.

Here’s the article:
iPhones, not clothes, represent social status for teens, says researcher

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