Online kids, teenagers, and young adults aged 8 to 24 are currently spending at a projected rate of $164 billion per year, according to a study released by Nickelodeon Online and Harris Interactive.
In addition, the online generation is saving at a rate of $54 billion annually and, e-commerce spending among online 18 to 24 year olds is currently 13% of their total spending, or more than four times the rate of e-commerce spending among all adults.
The study found that online teens and young adults (13-24) are spending their money on similar items: clothes, pre-recorded music, movie tickets, and books. This varies by gender a great deal; females are more likely than males to buy clothing (75% vs. 52%), shoes (40% vs. 23%), and camera film (36% vs. 18%). On the other hand, males are more likely than females to buy computer software (43% vs. 7%), stereo equipment (21% vs. 8%), and video games/systems (26% vs. 5%).
Similar to online 13-24 year olds, online kids (8-12) also buy books and pre-recorded music, but toys and games are popular items for children as well. When comparing the spending habits of 8-12 year olds boys and girls, girls are more apt to buy clothes (25% vs. 7%) and boys are more likely to buy video games/systems (42% vs. 7%).
The source of youth income changes dramatically as children enter the teen years. For example, nearly 40% of income for children under 13 derives from allowances, whereas by age 16 three-quarters of income derives from paid jobs. Younger children are fully dependent on parents for income, while teenagers and young adults have their own, independent source, namely employment.
The studies also show that Generation Y is serious about saving. Savings rates were high throughout the age range covered by the study (8 to 24), and results indicate that kids become fiscally responsible quite early in life.
Study results indicate that 63% of online 13 to 24 year olds say they will spend more online in the future than they do today There are currently 65.4 million 8 to 24 year olds in the US population, an increase of 6% from 10 years ago. This population group is currently 24% of the US population.
The studies, conducted online quarterly by Harris Interactive, Rochester, NY, interviewed 3,878 young respondents in July 2000.
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