Teens And Money: New Research Sheds Light On Gen-Z's Spending Habits

New research on teen spending in the U.S. revealed that social issues are a primary concern for Gen-Z and younger -- even if their shopping habits don't always reflect it.

According to a survey by Piper Sandler, a leading investment bank, teens cited the Russian invasion of Ukraine as their number one social issue of concern (13%), followed by the environmental and climate crisis (11%), racial equality (10%), gas prices (10%), and inflation (4%).

With an average age of 16.2, the 7,100 teens surveyed between Feb. 16 and March 22 revealed that they spend $2,367 per year with an average household income of $62,298. For the survey, 39% of teens reported being employed part-time.

The survey “showed an acceleration in overall teen spending, up 9% Y/Y,” said Nicole Miller Regan, a senior research analyst with Piper Sandler that conducted the study.

A significant amount of teen spending was focused on social issues and proven results. For example, many girls surveyed said they are more likely to buy beauty products if the label hs the terms “clean” (88%) or “science-backed” (58%).

“GenZ is known to be a conscious generation,” Regan noted.

Seven percent of teens also said that their “shopping time is allocated to secondhand,” a known way to reduce carbon footprints and recycle effectively. Forty-six percent reported purchases of secondhand items and 56% reported selling them.

However, while social issues are one main focus for teens, their spending habits do not always put their money where their mouth is. Chick-Fil-A ranked number one on the list of teens’ top restaurants, a brand that is known for its anti- LGBTQ2S+ stance.

The survey also noted that teens’ interest in plant-based meat is also slipping compared to previous survey results. Forty-three percent of teens reported consuming or willing to try plant-based meat, down from 49% from a Spring 2021 survey.

In terms of overall spending, Nike was the number one apparel brand for teens and occupied 30% of teens' clothing spending and 60% of footwear spending. Not surprisingly, Amazon is teens' favorite e-commerce site with 53% reporting that Amazon is their preferred place to shop online.

Coach reached 17% of teen handbag spending, Ulta had 48% of teens' beauty spending, e.l.f represented 13% of cosmetic spending, and CeraVe saw the highest percentage of spending by teens (48%) for skincare brands.

Food was a priority spending category for upper-income living teens (22%), and overall teens ranked goldfish (11%) as their top snack of choice.