Abstract
Teenagers are highly motivated by money and the myriad products and services
for which it can be exchanged, but they can also be naïve about the
consequences of profligate spending and slipshod money management. Though
arguably one of the most privileged and self-aware generations of modern
times, these 24.8 million trendy and hyper-brand-aware adolescents age 12-17
are also among the least-educated and most underserved in terms of personal
finance and money management. As a cohort they represent an $80 billion
market, but teens' immaturity and often unrealistic expectations of their own
imminent wealth lead parents and educators to encourage teen saving but to
doubt that other financial products-especially those that facilitate
spending-are in the best interests of their kids. In this report Packaged
Facts analyzes how providers of financial products and services can ethically
answer parental concerns while still leveraging young people' s desire for
independence and instant gratification into viable, long-term financial
instruments, from basic savings and checking accounts to payment cards, money
management and investment, and media-based banking.
What' s important to purveyors of financial products and services is their own
long-term investment in the adults these young consumers will become. That
includes finding ways not only to expand opportunities for the 16.4 million
teens who currently use financial services, but to attract the 5.2 million
teens who are thus far underserved (i.e., those who work or receive an
allowance or money for chores but do not yet have or use financial products or
services). Thus, Packaged Facts explores the world of teenagers and money-how
they get it, how they feel about it, how they spend it, how they save it; how
much they understand about the long-term implications of finance in their
lives-and analyzes how financial marketers can parlay this knowledge into hip,
exciting products. The report draws on uniquely cross-tabulated Simmons Market
Research Bureau teen consumer survey data, along with secondary sources
including articles appearing in marketing, business and trade publications;
government resources; company literature and advertising; and extensive
Internet canvassing including websites and blogs. The report presents four
focus chapters:
- Teen Attitudes and Demographics. Provides a demographic profile of
U.S. teens today, with emphasis on the cohort' s income sources and leisure
activities;
- Teen Shopping and Spending. Examines teen spending and shopping
patterns, delineating differences in taste and focus according to age and
gender, and linking these data with underlying values and desires;
- Teens and Payment Cards. Analyzes teen use of payment cards (ATM,
gift, credit, debit) and bank accounts (savings and checking); and pinpoints
media and technology-related opportunities in teen financial management,
emphasizing Internet and cell phone usage.
- Teen Banking and Financial Services. Details educational and
marketing programs in personal finance sponsored by banks and credit unions,
paying close attention to the ways in which marketers are addressing potential
conflicts between the concerns of parents and the financial aspirations of
their kids, while also seeking to win teens over as customers for life.
View Cart
