Even teens are feeling the pinch in this economy
Posted
Oct 31 2008, 11:42 AM
by
Karen Datko
Rating:
Like blogger Neimanmarxist, we were amazed at a recent statistic in The New York Times: Annual discretionary spending by teens has fallen to $2,600, a recent survey shows. That's 27% below the all-time high of $3,560 reported in the spring of 2006.
"Really?" the 20-something blogger wrote in a post at The Reductionist. "Teenagers get that much money? I didn't."
We expected a snarky follow-up from her, but instead Neimanmarxist showed empathy for today's teens: With so much to spend, she said, no wonder marketers prey on them, creating peer pressure to have the latest stuff. No wonder too many teens define their self-worth with an expensive cell phone.
No wonder some feel panicky about the economy.
The NYT story was full of anecdotes about teens who've been used to buying whatever they want, and are freaking out because their struggling parents are cutting back.
Some were even more stunned when their parents explained why. One Ohio mother interviewed in the story showed her teens the family bills. "When her son saw the mortgage bill he thought it was an annual payment," the story said.
The NYT piece and other excellent articles suggest how to talk to teens about the current economy. Explain the family's situation in a calm way that doesn't cause panic. Enlist the kids' help with yard work and other things that used to be outsourced. Teach the kids how to make better budgeting and spending decisions.
It's not impossible. The survey mentioned in the NYT showed that while teen spending on clothes increased by 1%, they're shopping at lower-end stores. That's a start. (In all fairness, we must add that the annual spending figures for teens include money from jobs, as well as allowance and gifts.)
Neimanmarxist has another suggestion. She wasn't immune to peer pressure when she was a teenager, and she wishes her parents had handled it differently, rather than simply telling her she couldn't spend. She thinks you can teach your children that frugality is cool. She wrote:
I think one thing that was decidedly absent from my childhood ... were ongoing conversations about the things we valued about ourselves (for example, being an intellectual, frugal family) and discussions of why certain things that most people value -- i.e., phones and cars -- were of no use for us.
