The next generation is spending more each year, and saving less according to a national study. People between the ages of eight and 21 years-old earn around $211 billion each year and spend $172 billion. The income is down from Harris Interactive's projection of $231 billion in 2002, although spending is up from a projection of $155 billion in 2002.
This means children are making less, saving less and spending more, but this may not be bad.
According to John Geraci, vice president of youth research at Harris Interactive, “It is a very optimistic generation, and they demonstrate a great deal of confidence that the economic rebound is around the corner and that good times are ahead for them.”
The study showed that an average of 62% of youth income was placed into savings, but only 19% stayed there. The average amount carried by an individual was only $30, and nearly everyone polled placed a high importance on ease of access to savings.
The study also showed that a majority of adult spending is determined by this generation, so if anything, the numbers may be undervalued.
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