Nov 11, 2008

National Junior Achievement poll takes pulse to forecast teen spending on gifts

(Colorado Springs, Colo.) – For retailers expecting lumps of coal in their cash registers this holiday season, teens’ consumer confidence about holiday spending may provide an unexpected gift. According to Junior Achievement’s 2008 Teen Holiday Spending poll, more than three quarters of teens surveyed (76 percent) plan to spend as much—or more—this year than last year on holiday gifts.

Are teens looking at the economy through rose-colored glasses, or has the impact of the current financial crisis not yet trickled down to their wallets? The results of the poll may reveal a disconnect between teens’ expectations and the reality that many families may have to curtail spending on gifts this year.

The 2008 Teen Holiday Spending Poll’s other key findings revealed that 47 percent of teens surveyed said they’d spend at least $100 on gifts, a four percent increase over last year. And, of those who said they’d spend at least some money on holiday gifts, 87 percent said they’d use their own money, 49 percent said they’d use money given to them by a parent, 19 percent said they’d use their parents’ debit or credit card, and 16 percent said they’d use their own debit or credit card (multiple responses were permitted).

Jack E. Kosakowski, president of Junior Achievement USA, noted, “Given the current state of the economy, the holiday shopping season provides an ideal opportunity for parents to talk to their children about appropriate budgeting and spending, so that they are staying within their financial means. Junior Achievement programs can also provide young people with practical financial tools so that they understand how to appropriately save, spend and invest.”

Among teens who said they would spend less this year or not spend any money on gifts, 71 percent said they were trying to save money, 48 percent cited concern about the state of the U.S. economy, and 41 percent cited a change in their family’s financial circumstances (multiple responses were permitted).

The poll was conducted for Junior Achievement by Opinion Research Corporation the week of October 23, 2008, and queried 500 U.S. teens ages 12-17 by phone—50 percent of the teens were girls, and 50 percent were boys. The margin of error is +/- 4.4 percent. This is the eighth year that Junior Achievement has conducted this poll. Last year, 78 percent of teens who took the poll (conducted in 2007 using an online survey tool) indicated they’d spend as much or more than the previous year on holiday gifts.

About Junior Achievement (JA)
Junior Achievement is the world’s largest organization dedicated to inspiring and preparing young people to succeed in a global economy. Through a dedicated volunteer network, Junior Achievement provides in-school and after-school programs for students which focus on three key content areas: work readiness, entrepreneurship, and financial literacy. Today, 138 individual area operations reach more than four million students in the United States, with an additional five million students served by operations in 120 other countries worldwide. For more information, visit www.ja.org.