With the COVID-19 pandemic ongoing, teens are not spending money on clothes and food like before.
Piper Sandler’s “Taking Stock with Teens” report shows that teenagers spent $2,150 this year, which is down 9% year-over-year. It was the 40th semi-annual Generation Z survey of more than 9,800 U.S. teens. The teens were from 48 states, with an average household income of $67,500 each.
Only 33% of the surveyed teens said they had a part-time job. This is down 37% from spring 2020 and 35% from fall 2019. The COVID-19 pandemic has affected their ability to find a job, said 23% of the teens.
This is likely why they are spending less of their disposable income on clothes, food, and beauty products, reported Fox Business.
Teens are buying fewer clothes, less food as their spending hits two-decade low https://t.co/AXzpHobVXa
— CNBC (@CNBC) October 6, 2020
One of the key findings shows that cosmetics spending for females is down 20% year-over-year, and skincare for females is down 3%. Also, teenagers only spent an average of $87 on handbags, which is an all-time low.
More than this, 8% of spending goes to secondhand purchases. “Just 33% of teens said they shopped at big-box retailers and department stores, a 36% decline from 2019,” Fox Business reported.
Fox Business said this is not surprising as stores such as J.C. Penney, Neiman Marcus, and J. Crew filed for bankruptcy protection during the pandemic. Meanwhile, Lord & Taylor, which is the oldest department store operator in the country, is in the process of liquidating, reported CNBC.
The survey is a semi-annual research project gathering input from teenagers with an average age of 15.8 years.