Alhabeeb, M.J. (1996). Teenagers’ money, discretionary spending and saving. Financial Counseling and Planning, 7.

OVERVIEW

Alhabeeb conducted this study to investigate the amount of money obtained and spent by teenagers. More specifically, this study examines individual and family characteristics, and their effects on discretionary teen spending and saving. The study closely examines certain variables and their effects on clothing, food, and entertainment expenditures.

DESIGN

Study participants included randomly selected males and females, ages 12-18.

FINDINGS

Several findings emerged:

• There was a positive correlation between an increase in age and expenditures on clothing and entertainment. Among most samples, older teens spent more on clothing and entertainment than did younger teens.
• There was a negative correlation between the increase in age and food expenditures. Among most samples, older teens spent less on food.
• Teens with higher incomes spent more on clothing and entertainment.
• Teens from high-income families also spent more money on clothing and entertainment.
• There was a negative correlation between teens having an allowance and expenditures on clothing and entertainment. Among most samples, teens with allowances spent less on clothing and entertainment.
• Males saved less money than did females.
• Males spent less money on personal care items and clothing than did females.

CONCLUSIONS

• As a teen ages, he or she becomes more concerned about image and appearance.
• Teenagers are not inclined to save their money. (Advertisers may find the teenage market an easy catch for well-directed campaigns.)
• Teenagers who have allowances may be more discriminatory on what items they purchase.
• Females purchase more image sensitive items than do males. Thus, it appears that image and appearance are critical issues among adolescent girls.
• Clothing and entertainment are major expenditures among teens.

CRITIQUE AND EVALUATION

While interesting, this study leaves out vital details about how it was conducted. Thus, there could be internal biases within the study.

QUESTIONS FOR REFLECTION AND DISCUSSION

1. What is the value of this research to those involved in working with teenagers?
2. How would advertising agencies and marketing strategists use these findings to maximize the effectiveness of their advertising campaigns?

IMPLICATIONS

This study and its results are an example of research used by advertisers and market strategists. Youth workers can also learn from such research. Two main principles may be gleaned and used from this study: first, young people need to learn financial responsibility; also, they need to develop a critical eye and perspective when viewing advertisements. Teens must learn about the persuasive tactics employed by advertising agencies use and determine how to carefully evaluate the images and messages involved in advertisements.

Michele D’Agostino cCYS