Table of Contents
Chapter 1: Executive Summary
- Introduction
- Scope of Report
- Report Methodology
- Teen Attitudes and Demographics
- Teens Understand the Power of Money
- Most Teens Want to Be Rich
- Teen Financial Market Represents Big $ Opportunity
- A Large and Culturally Diverse Group
- Figure 1-1: Share of Teen Population by Segment, Age 12-14 vs. Age
15-17, 2007 (percent of U.S. children age 12-17)
- Many Teens Have Paying Jobs
- Teens in Affluent Households More Careful About Money
- Teen Shopping and Spending
- Understanding What Teens Do with Their Money
- Teens Crave Clothing, Music, Technology
- Figure 1-2: What Teens Spend Their Money On, 2007 (percent of U.S.
children age 12-17)
- Most Teen Households Have Video Game Equipment
- Teens Eat Out Often
- Spending, Savings Cues Come from Parents
- Discount Stores Top Shopping Destinations
- Teens Shop Internet for Family, Selves
- Teens and Payment Cards
- A Major Opportunity
- Figure 1-3: Percentage of Teens with Payment Cards by Type, 2007 (U.S.
children age 12-17)
- Credit and Debit Cards Make Parents Nervous
- Gift Cards Make for Fun Introduction to Paying with Plastic
- Credit Card Use Becoming More Common Among High Schoolers
- Many Teens Suspicious of Credit' s Slippery Slope
- ATM Cards Provide Practice with Checking, Savings Accounts
- Debit Cards Can Build Responsible Spending Habits
- Traditional Prepaid Phone Cards Also Present Opportunities
- Teen Cards of All Types Must Offer Real Value
- Teen Banking and Financial Services
- Proof of Integrity Is Marketers' First, Most Difficult Goal
- Teens Like to Save, and Many Say They' re Good At It
- Parents Worry About Teens' Immature Money Management
- Education and Savings First: Money Management, Spending Later
- NexTier Bank Hosts Junior Banking Board
- Merrill Lynch Shows “Investing Pays Off”
- Schwab, Others Jump on Education Bandwagon
- Next Step: Tailor Checking to Teens
- ATMs on Campus Increase Brand Awareness, Convenience
- Cell Phones Are Future Wave in Account Management
Chapter 2: Teen Attitudes and Demographics
- Introduction
- Scope of Report
- Teens Understand the Power of Money
- Most Teens Want to Be Rich
- Figure 2-1: Teen Demographics for Agreement with Statement: “I
Want to Be Rich,” 2007 (percent of U.S. children age 12-17)
- Teen Financial Market Represents Big $ Opportunity
- Teens Know Less About Finances Than They Think They Do
- Shaky Financial Knowledge Makes Teen Credit Risky
- Table 2-1: Teen Demographics for Agreement with Statement: “I Want
to Be Rich,” 2007 (percent, number and index of U.S. children age
12-17)
- Table 2-2: Overview of Teen Income Sources and Use of Financial Products
and Services, 2007 (percent and number of U.S. children age 12-17)
- Table 2-3: Population of Potential, Current and Underserved Teen Markets
for Financial Services, 2007 (number of U.S. children age 12-17 in thousands)
- Teen Demographics
- Teens by the Numbers
- Figure 2-2: Share of Teen Population by Segment, Age 12-14 vs. Age
15-17, 2007 (percent of U.S. children age 12-17)
- Total Teen Population = 24.8 Million
- Today' s Teens the Most Diverse in History
- Figure 2-3: Teens by Race and Ethnicity, 2007 (percent of U.S. children
age 12-17)
- Attitudes Toward Wealth Differ Among Ethnicities
- Asian Teens Aspire to High Incomes
- U.S. Teen Population Shrinking
- Despite Mature Outlook, Teens Depend on Parents for Living
- Rural, Small Urban Areas Home to Majority of Teens
- Most Teens Live in Two-Adult Households
- Sports, Theme Parks Top Leisure Activities
- Electronic, Print Media Capture Big Teen Interest
- Media, Tech Make Teens Happy
- Money, Mom Make Teens Happy, Too
- Parents Shield Kids from Physical Hazards, Financial Realities
- Teen Income Facilitates Connection Between Work and Reward
- Many Teens Have Paying Jobs
- Drivers' Licenses Expand Employment Opportunities; Non-Hispanic Whites
Dominate Job Market
- Four in Ten Teens Live in Households with Income of $75,000 or More
- Teens in Affluent Households More Careful About Money
- Higher Household Income May Increase Familiarity with Finances
- Table 2-4: Population by Ethnicity of Potential, Current, and
Underserved Teen Markets for Financial Services, 2007 (number of U.S.
children age 12-17 in thousands)
- Table 2-5: Teen Demographics, 2007 (percent and number of U.S. children
age 12-17)
- Table 2-6: Population Trends in the 14- to 17-Year-Old Age Group,
1980-2015 (number and percent)
- Table 2-7: Projected Growth in Teens Population by Age Group, 2006 vs.
2011 (in thousands)
- Table 2-8: Percentage of Population by Size of Metropolitan Area: Teens
vs. Adults
- Table 2-9: Living Arrangements of 12- to 17-Year-Olds, 2006 (number and
percent)
- Table 2-10a: Living Arrangements of 12- to 17-Year-Olds by Race and
Hispanic Origin: Non-Hispanic White and Asian, 2006 (number and percent)
- Table 2-10b: Living Arrangements of 12- to 17-Year-Olds by Race and
Hispanic Origin: Black and Hispanic, 2006 (number and percent)
- Table 2-11: Teen Participation in Selected Leisure Activities: Boys vs.
Girls (percent and number of U.S. children age 12-17)
- Table 2-12: Percentage of Teens Receiving Income from Selected Sources:
By Age Group, 12-14 vs. 15-17 (U.S. children age 12-17)
- Table 2-13: Percentage of Teens Who Receive an Allowance or Money for
Chores: By Age Group and Gender, 2007 (U.S. children age 12-17)
- Table 2-14: Teen Demographics for Receiving an Allowance or Money for
Chores, 2007 (percent, number and index of U.S. children age 12-17)
- Table 2-15: Teen Demographics for Working, 2007 (percent, number and
index of U.S. children age 12-17)
- Table 2-16: Percent of High School Students Employed During Either
School Year or Summer
- Table 2-17: Distribution of Teen Population by Household Income Bracket
(percent and number of U.S. children age 12-17)
- Table 2-18: Financial Profile of Teen Population by Household Income
Bracket: Under $75,000 vs. $75,000 or more (percent of U.S. children age
12-17)
Chapter 3: Teen Shopping and Spending
- Understanding What Teens Do with Their Money
- Teens Crave Clothing, Music, Technology
- Figure 3-1: What Teens Spend Their Money On, 2007 (percent of U.S.
children age 12-17)
- Teen Girls Outspend Boys in Most Categories
- Teen Boys Spend More on Video Games
- Most Teen Households Have Video Game Equipment
- Video Game Passion Wanes with Age
- Teens Eat Out Often
- Fast Food Attracts Vast Majority of Teens
- McDonald' s Captures Majority of Teens
- Many Teens Know Value of a Dollar
- Spending, Savings Cues Come from Parents
- Irresponsible Spending Habits Begin at Home
- Parents Tend to Indulge Teens' Whims, Regardless of Income Bracket
- Figure 3-2: Selected Financial Opinions of Teen Population by Household
Income Bracket: Under $75,000 vs. $75,000 or More (percent of U.S. children
age 12-17)
- Limited Access to Credit, Checking Reins In Spending
- Discount Stores Top Shopping Destinations
- Figure 3-3: Percentage of Teens Who Shopped in Department/Discount Stores
in Last Three Months: By Age Group and Gender, 2007 (U.S. children age 12-17)
- Big-Box Retail Offers Entertainment Plus Value
- Lookee-loos Don' t Always Buy
- Figure 3-4: Percentage of Teens Who Purchased in Department/Discount
Stores in Last Four Weeks: By Age Group and Gender, 2007 (U.S. children age
12-17)
- Wal-Mart Reigns as King of Discounts, Diversion
- Target Lures More Girls Than Boys
- Target' s Flashy Wii Gift Card May Woo Electronics Buffs
- Girlie Electronics Flash the Pink
- Cell Phones, Internet: For Spending On and Spending With
- Talk, Text, Cameras Create Instantaneous Word-of-Mouth
- Texting, Games, Downloadable Ringtones Define Teen Segment Slivers
- Marketing Through Cell Phones Requires Constant Research
- Teens Shop Internet for Family, Selves
- Even Children, Tweens Help Parents Purchase Online
- Over One-Third Order by Mail, Phone
- Shopping Malls Provide Interactive, Social Experience
- Girls Especially Attuned to Mall Experience
- Luxury Spending Increases Despite Economic Downturn
- Celebrities, Movie Stars Inspire Fashion Aspirations
- “Fast Fashion” Accessories Help Teens Afford a Piece of the
Dream
- Rewards, Brand Tie-Ins Can Make Financial Services Relevant
- Table 3-1: Teen Shopping Attitudes: By Gender 2007 (percent of U.S.
children age 12-17)
- Table 3-2: What Teens Spend Money On: By Gender, 2007 (U.S. children age
12-17)
- Table 3-3: Teen Shopping and Spending Overview: By Age Group and Gender,
2007 (percent of U.S. children age 12-17)
- Table 3-4: Teen Household Ownership of Video Game Players: By Age Group
and Gender, 2007 (percent of U.S. children age 12-17)
- Table 3-5: Teen Attitudes About Video Games By Age Group and Gender, 2007
(percent of U.S. children age 12-17)
- Table 3-6: Percentage of Teens Going to Family Restaurants and Steak
Houses: By Age Group and Gender (U.S. children age 12-17)
- Table 3-7: Percentage of Teens Who Agree with Selected Statements About
Eating Out: By Age Group and Gender (U.S. children age 12-17)
- Table 3-8: Percentage of Teens Going to Fast-Food and Drive-In Restaurants
by Age Group, Gender and Name of Restaurant Chain (percent of U.S. children
age 12-17)
- Table 3-9: Teens as Retail Shoppers: By Gender, 2007 (percent of U.S.
children age 12-17)
- Table 3-10: Overview of Teen Financial Attitudes and Opinions, 2007
(percent of U.S. children age 12-17)
- Table 3-11: Teen Demographics for Agreement with Statement: “I Tend
to Spend Money Without Thinking,” 2007 (percent, number and index of
U.S. children age 12-17)
- Table 3-12: Selected Financial Vehicles for Teen Spending, 2007 (percent
and number of U.S. children age 12-17)
- Table 3-13: Teens Use of Cell Phones: By Gender, 2007 (percent of U.S.
children age 12-17)
- Table 3-14: Teens as Internet Shoppers: By Gender 2007 (percent of U.S.
children age 12-17)
- Table 3-15: Teens as Internet/Mail/Phone Order Purchasers: By Gender, 2007
(percent of U.S. children age 12-17)
Chapter 4: Teens and Payment Cards
- Cards Present a Major Opportunity
- Figure 4-1: Percentage of Teens with Payment Cards by Type, 2007 (U.S.
children age 12-17)
- Credit and Debit Cards Make Parents Nervous
- Cards Can Help Teens Prepare for Adult World
- Figure 4-2: Percentage of Teens Who Agree with the Statement:
- “Credit Cards Make Shopping Easier”: By Age Group and Gender,
2007 (U.S. children age 12-17)
- Gift Cards Make for Fun Introduction to Paying with Plastic
- Links to Teen Interests, Cool Brands Boost Monetary Value
- American Idol Gift Card Plays Up Celebrity Tie-Ins
- Credit Card Companies Leverage Multiple Use, “Open Loop” Gift
Cards
- AmEx Gift Cards “Especially For” Teens
- Teen Gift Cards Build Brand Awareness, Trust for Later Credit Card Use
- Credit Card Use Becoming More Common Among High Schoolers
- Questionable Financial Discipline Belies Cultural Savvy
- Most Teens Want to Avoid Debt
- Figure 4-3: Percentage of Teens Who Agree with the Statement “I
Don' t Like the Idea of Being in Debt,” 2007 (U.S. children age 12-17)
- Many Teens Suspicious of Credit' s Slippery Slope
- Figure 4-4: Percentage of Teens Who Agree with the Statement “Credit
Cards Are Just Another Way of Getting Into Debt,” 2007 (U.S. children
age 12-17)
- Higher Household Income Correlates with Credit Wariness
- Figure 4-5: Indexes by Household Income for Agreement with the Statement
“Credit Cards Are Just Another Way of Getting Into Debt,” 2007
(U.S. children age 12-17)
- Cards Help Bridge Lean Times; Most Teens Pay Off Balances Monthly
- Occasional Disconnect Between What' s Affordable, What' s Not
- One-in-Five Teens Agree that Credit Cards Enable Otherwise Unaffordable
Purchases
- Figure 4-6: Percentage of Teens Who Agree with the Statement “With
Credit Cards, You Can Buy Things You Normally Couldn' t Afford,” 2007
(percent of U.S. children age 12-17)
- Boys, Younger Teens, Hispanics Most Likely to Believe in Credit' s Power to
Grasp the Unattainable
- Figure 4-7: Selected High-Index Teen Demographics for Agreement with
Statement: “With Credit Cards, You Can Buy Things You Couldn' t Normally
Afford,” 2007 (U.S. children age 12-17)
- “Minimum Payments” Can Dash Delusions of Solvency
- Average College Undergrad Debt Shrinking Slowly Despite Increased Card Use
- Financial Discipline Helps Keep Debt In Line
- Parents, Teens and Financial Services Must Work Together
- ATM Cards Provide Practice with Checking, Savings Accounts
- Teens Underrepresented in ATM Card Channel
- Teens with Jobs, Bank Accounts Likely to Have ATM Cards
- Figure 4-8: Selected High-Index Teen Demographics for ATM Card Ownership,
2007 (U.S. children age 12-17)
- Debit Cards Can Build Responsible Spending Habits
- Debit Cards Provide Opportunities for Teen-Oriented Tie-Ins, Rewards
- Cell Phones Users Particularly Open to Card Use
- Boost Mobile Closes Loop Between Phones and Finance
- Rebates, Sweepstakes Sweeten Boost Deal
- Traditional Prepaid Phone Cards Also Present Opportunities
- Lower-Income Teens Still Use Traditional Calling Cards
- Black, Hispanic Teens Use Calling Cards
- Figure 4-9: Selected High-Index Teen Demographics for Having a Telephone
Prepaid Calling Card/Credit Card, 2007 (U.S. children age 12-17)
- Prepaid Credit, Debit Cards a Growing Teen Market
- Online Purchasing Just One Advantage Among Many
- Figure 4-10: Selected High-Index Teen Demographics for Using Credit Cards
for Internet, Catalog, Mail or Phone Order Purchases, 2007 (U.S. children age
12-17)
- Prepaid Cards Reassure Parents, Keep Spending in Check
- Visa Buxx Cultivates Future Credit Business
- Parents Set Spending Limits, Reload Card at Will
- Tricky Balance Between Parental Concerns, Teen Enthusiasm
- Customized Design, Low Fees Up Coolness Factor
- MasterCard' s Prepaid Allow Card Competes with Visa Buxx
- Education, Responsibility Heavily Stressed
- Allow Card Works on Usual Prepaid Principles
- MYplash MasterCard “Rocks the Plastic”
- Hip Lifestyle, Cool Brands, Great Music-And It' s Already Paid For!
- Emphasis on Teen Independence, with a Nod to Paying Parents
- Hello Kitty Card May Have Gone Too Far
- High Fees Also Criticized
- Conventional Credit Card Might Have Fared Better
- Low-Limit Credit Cards Ease Transition Into Adulthood
- Building Good Credit History Justifies Early Restraint
- Teen Cards of All Types Must Offer Real Value
- Table 4-1: Teen Use of Selected Payment Cards, 2007 (percent and number of
U.S. children age 12-17)
- Table 4-2: Percentage of Teens Agreeing with Selected Statements About
Credit Cards: By Age Group and Gender, 2007 (U.S. children age 12-17)
- Table 4-3: Percentage of Teens Ageeing with Selected Statements About
Payment Cards and Finances: Any Agree, Agree a Lot, Agree a Little, 2007
(percent of U.S. children age 12-17)
- Table 4-4: Teen Demographics for Agreement with Statement: “Credit
Cards Make Shopping Easier,” 2007 (percent, number and index of U.S.
children age 12-17)
- Table 4-5: Teen Demographics for Agreement with Statement: “I Don' t
Like the Idea of Being in Debt,” 2007 (percent, number and index of U.S.
children age 12-17)
- Table 4-6: Teen Demographics for Agreement with Statement: “Credit
Cards Are Just Another Way of Getting Into Debt,” 2007 (percent, number
and index of U.S. children age 12-17)
- Table 4-7: Teen Demographics for Agreement with Statement: “With
Credit Cards, You Can Buy Things You Normally Couldn' t Afford,” 2007
(percent, number and index of U.S. children age 12-17)
- Table 4-8: Teen Ownership of Bank Accounts by Type: By Age Group and
Gender (percent of U.S. children age 12-17)
- Table 4-9: Teen Demographics for Having ATM Cards, 2007 (percent, number
and index of U.S. children age 12-17)
- Table 4-10: Ownership of and Monthly Charges on Cellular and Wireless
Phones: Teens with an Income vs. Teens with ATM or Credit Cards, 2007 (percent
and index of U.S. children age 12-17)
- Table 4-11: Teen Demographics for Having a Telephone Prepaid Calling
Card/Credit Card, 2007 (percent, number and index of U.S. children age 12-17)
- Table 4-12: Teen Demographics for Using Credit Cards for Internet,
Catalog, Mail or Phone Order Purchases, 2007 (percent, number and index of
U.S. children age 12-17)
Chapter 5: Teen Banking and Financial Services
- Proof of Integrity Is Marketers' First, Most Difficult Goal
- Teens Like to Save, and Many Say They' re Good At It
- Figure 5-1: Overview of Teen Attitudes on Saving, 2007 (percent of U.S.
children age 12-17)
- Parents Worry About Teens' Immature Money Management
- Those Who “Spend Without Thinking” of Particular Concern
- Teens Underserved in Educational Banking Services
- Financial Services Marketers Walk a Fine Line
- Education and Savings First: Money Management, Spending Later
- Despite High Hopes, High Schoolers Often Unprepared for College Finances
- Banks Can Reach Parents Through Teens
- Opening Kids' Accounts Gives Parents Unaccustomed Face Time with Personal
Bankers
- Banks Can Take Up Schools' Educational Slack
- Bank-Sponsored Financial Literacy Programs Popular
- NexTier Bank Hosts Junior Banking Board
- Fifth Third Bancorp Gets “Young Bankers” On Board
- Fifth-Grade Finance a Win-Win Situation
- Wells Fargo Takes Education On the Road and On the ' Net
- Interactive “Fun of Money” Tour Raises Financial Awareness
- Wells Fargo Also Offers “Teen Access” Services
- Parental Involvement, Hands-On Experience Are Key
- “Hands On” Online Education Available for All Age Groups
- Young Americans Bank: The Only Kids-Only Institution
- Even the Youngest Customers Can Take Out Loans
- Partnering with Educators, Nonprofits and Community Advocates Can Boost
Banks' Visibility
- Most Banks Outsource Educational Curricula
- Delaware' s Annual “Summit for Students” Attracts Hundreds
- National Endowment for Financial Education Reaches Out with Financial
Planning Curriculum
- Partnerships, Online Access Increase Reach
- Investment Firms Actively Teaching Teens
- Merrill Lynch Shows “Investing Pays Off”
- Public Service Programs Target Wide Audience
- Sesame Workshop Encourages Pre-schoolers to Save
- Schwab, Others Jump on Education Bandwagon
- Financial Management 101: Start with Savings, The Least Controversial
Financial Service
- Figure 5-2: Selected High-Index Teen Demographics for Agreement with
Statement: “I Am Good at Saving Money,” 2007 (U.S. children age
12-17)
- Rewards, Gifts, Cool Stuff Are Further Incentives to Save
- Banks Get Creative in Encouraging Teens to Save
- Next Step: Tailor Checking to Teens
- Banks Make Checking Attractive with Gift Cards, iPods
- ATMs on Campus Increase Brand Awareness, Convenience
- Figure 5-3: Selected High-Index Teen Demographics for Having ATM Cards,
2007 (U.S. children age 12-17)
- PAYjr Links Internet Obsession with Allowance Allocation to Teach Smart
Financial Habits
- Parents Outsource Nagging with Online Chore Assignments
- Early Adopters Say So Far, So Good
- Detractors Mostly Haven' t Tried System Themselves
- PAYjr Savings, Debit Cards Increase Range of Services
- Cell Phones Are Future Wave in Account Management
- An ATM in Your Pocket
- Obopay Leads Push into Youth-Oriented Cell Phone Banking
- Smart Adaptation of PayPal Model
- Teen-Centered, But with Parental Controls
- Transactions Require Both Parties to Have Obopay Account
- Customer Retention Starts Early: Banks Reach Out to Teens Before They
Become Teens
- Looney Tunes Savings Club for Kiddie Capitalists
- Kid Zone Accounts Start Small, Build Fast
- Marketing Teen Financial Services into the Future: Move Fast
- Alignment with Teen-Centered Brands Builds Relevance
- Customized Cards, Internet, Cell Phone Pique Teen Interest
- Teens Should Discover You on Their Own
- Back Up Come-Ons with Integrity, Service, Education
- Relevant Websites
- Table 5-1: Overview of Teen Attitudes on Saving, 2007 (percent of U.S.
children age 12-17)
- Table 5-2: Teen Ownership of Bank Accounts by Type: By Age Group and
Gender (percent of U.S. children age 12-17)
- Table 5-3: Teen Demographics for Agreement with Statement: “I Am
Good at Saving Money,” 2007 (percent, number, index of U.S. children age
12-17)
- Table 5-4: Teen Demographics for Having ATM Cards, 2007 (percent, number,
index of U.S. children age 12-17)
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