The downturn is causing teens, who usually spend through recessions while parents absorb the pinch, to cut back, Advertising Age reports. Teenagers are spending about 14% less this spring than last, a “dramatic impact” from a demographic that spends an average of $125 billion each year. Unemployment is also cramping spending; the teen jobless rate hit 22% in March, the highest in a decade.
Teens are curtailing spending on beauty products, apparel, and recreational activities like concerts, sporting events, and movies. But they’re not willing to cut back on DVDs, music, and video games, which rose from 7% to 8% as a percentage of teen spending. Restaurants are among the most affected by the belt-tightening—teens spent 20% less on food last fall than fall 2007.