Recession? What recession?!

Are young consumers spending their way through the recession?

They have been called ‘the lost generation’, consumer casualties of the recession. But is this sort of doom-mongering justified? Or are young people’s spending habits impervious to the state of the economy?

Last week we got out on the high street to talk spending habits with a cross section of young people. What we found was that if anything their spending has increased this year and does so with each passing birthday, recession or not. Their need to keep up with the latest trends (not to mention added peer pressure) combined with a healthy allowance from mum & dad to stave off ‘moody-teenager syndrome’ makes keeping an up-to-date wardrobe a priority. Indeed, a recent study uncovered that British teenagers rank buying clothes as a higher priority of spending than any other nation.

Big brands are attempting to cash in on this trend with O2 recently launching a Visa card for young people. However, it’s not just borrowed credit and parental allowances subsidizing the splurging - if you have a product that young people want they will do whatever it takes to raise the funds to get it. Living in an age when business is king and entrepreneurs are celebrities has seemingly inspired young people to get creative to raise funds in order to feed their addiction to spending. Sources of income range from ‘chores for cash’ and babysitting, to eBay sales. Add to this their blissful ignorance of financial meltdown coupled with an apathy towards the news and what you get is a demographic with considerable spending clout.