The Buy Generation

Today it’s not uncommon to see kids cruising around the mall. Many of them are armed with mom or dad’s credit card and are there to make an all out assault. They are a generation that often gets everything they need, and most everything they want.

But the fact that kids grow up never worrying about money may be cause for concern. “I don’t have to worry about, like, if I’m gonna run out of money or anything I guess. I think that’s how most people feel,” says Scott, age 15.

Dr. Michael Popkin, author of Active Parenting of Teens, says that kids who receive so much income but aren’t expected to pay for any of their expenses grow up with a distorted view of reality. “They think that money is just there for fun, not for having to pay for any of the things you really need in life,” he says.

Experts suggest that parents make rules about how their children spend their money and insist that some of their money goes to expenses, not just fun. A clear talk about the difference between wants and needs is important, but that’s just the first step in teaching those values. Dr. Popkin says that these conversations need to be followed up by parental action that models what they are being taught.

Tapping into Teens

The large number of teenagers in the population represents the offspring of the many middle-age baby boomers who were once the group to watch. Now their children are being studied by those whose businesses rely on consumer spending.

There are companies, such as Teenage Research Unlimited in Chicago, that focus on the habits of teens in order to help retailers develop their marketing strategies. They say the average teenager visits the mall 54 times a year compared to other shoppers who visit an average of 39 times.

With this in mind, stores are quick to develop ideas and sales tactics to lure them in. So keep in mind that those hip-looking employees, pop music, and video walls and celebrity appearances are there for more reasons than one!

What Parents Should Know

With the end of summer comes a few last trips, usually to the local mall. The ritual of back to school shopping brings excitement to most children and teenagers who look forward to the first few days and weeks of school.

Living up to personal appearance “ins and outs” is just one of the many pressures that kids face, and they are usually anxious to see what their classmates will be wearing. Some will go all out to make sure they are living up to expectations...and that often requires spending large sums of their parents’ money. It can be hard for parents to say ‘no’ with so much advertising geared toward young consumers. But, setting a few restrictions should help children become responsible spenders and gain a better understanding of their wants versus their needs.

One way to keep shopping under control is to allot a specific amount that can be spent. Decide which things need to be purchased first and then let the child decide on other things that can be bought with the money that’s left. This can be harder with older children who may have jobs and make their own money, but the practice of spending money wisely needs to be reinforced in them as well. Encourage them to think about other things they will need in the future, not a pair of shoes, a shirt, or a toy they want right now..