The Frugal Teenager, Ready or Not – Financial Education and Jobs for Teens

Category : Money

The Times has a great article in today’s paper about teenagers and the current economic crisis.

Its fairly anecdotal and talks mostly about teenagers at a private school in Manhattan (probably why its in the Style Section) but it hits on some great points.

“Last week a semiannual survey of 7,000 15- to 18-year-olds by Piper Jaffray, an investment bank and research firm, showed that annual discretionary spending by teenagers, whose money comes from allowance, gifts and part-time jobs, had dropped 27 percent to $2,600, from its spring 2006 peak of $3,560.”

“American teenagers, many of whom have weak quantitative skills, are generally naive about finance. In a 2007 study for Charles Schwab, the financial services company, 62 percent of teenagers believed they were prepared to deal with the financial world after high school. That boast was undercut when they were probed about topics like check-writing and paying bills.”

The reporter also says that the teenagers they talked to are starting to look for jobs to make up for cutbacks in spending money that their parents are giving them.

If I were a retailer focused on selling to teens, Id be interested in hiring these teens at my store, wouldn’t you? I mean, take a look at this small business started by a young entrepreneur that is powered by social media.

Teenage employers become brand ambassadors and their friends are more likely to think positively and shop at places that hire their peers. And can help!