Date posted: 3-23-01

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Teens pump big bucks into area businesses

By Veronica Thomas

DeKalb News Service

ST. CHARLES -- It's a typical Saturday afternoon for Lauren Olsen, 13, of St. Charles. Olsen and some friends are preparing to descend upon the Charlestown Mall.

Loaded with this week's allowance and some baby-sitting money, Olsen plans to buy a new shirt and a pair of earrings. For lunch, she plans to stop at McDonald's with some friends.

This sector of the population, young adults aged 13 to 17, has tremendous buying power. Teen spending is up 60 percent in the last five years, according to the Milwaukee Journal Sentinel. Quicken.com reports that last year, teens spent $155 billion from a combination of money of their own and money from their parents.

Several retailers in the mall say teens make up a large portion of their customer base. Scott Brownwell, store manager of video store Saturday Matinee, said teens account for up to 90 percent of sales.

"About 60 percent of daily sales come from young people," Brownwell said. "On the weekend, it can be much higher."

Record Town store manager Jason Charatata said half the store's sales come from teens.

"On weekdays, we see a split of adults and teen-agers," Charatata said. "At night and on the weekends, we see more teens."

Sylvia Roa, assistant manager at clothing store Lerner Shops, said teens account for 20 percent of the store's customer base.

"Our store is geared more to adults," said Roa. "But we have plenty of teen-agers spending money."

Department stores receive less money from teens. Terry Reynolds, assistant manager at Kohl's department store, said teens make up only 5 percent of the store's customer base.

"Although we sell clothing for teens," Reynolds said, "parents do nearly all the shopping."

Parents buying clothes for their teens generates additional revenue.

"The market is split between teens buying for themselves and parents buying for the teens," said Joan Davis, assistant manager at the Gap. "We see adults spending a lot of money at Christmas and spring break."

At Pacific Sunwear, manager Chris Negrete sees the same thing.

"An adult will spend around $150 on their teen," he said. "Within a week or two, the teen is back buying another shirt or pair of pants, with their own money."

The average teen spends $20 to $25 per store visit, but the amount can be higher if the teen-ager works.

"Money spent by a teen depends on their age," said Davis. "Younger teens spend around $20 per visit, working teens spend around $50."

Brownwell isn't sure how younger teens get money.

"I see 13-year-olds pulling out $50 bills," he said. "When I was younger, I didn't have that kind of money."

A recent survey by Ohio State University for the U.S. Department of Labor said the average teen-ager gets $50 a week in disposable income from parents.

Researchers randomly selected 9,000 teens from around the country and followed them for two years; tracking how much money their parents gave them. Though many teens reported getting no allowance or an allowance in the $10 to $20 range, the amount of money parents gave them over the course of the week was substantially higher, the study said.

Penny Childs, a single mother of two teens in St. Charles, agrees.

"I give my kids $10 each for an allowance, but I give them extra money if they need it," she said. "If I'm with them, I'll pay for their lunches, or for us to go and see a show. It adds up."

Staci Harrell, 13, of St. Charles gets her money from her parents.

"I earn some money from chores, and my parents just give me some," Harrell said.

Rachel Rivers, 15, also of St. Charles, baby-sits and her parents give her a $10 allowance.

Luke Blaknick, 17 of Sycamore, has a part-time job, but still gets an allowance.

Many teens, both male and female, prefer to buy clothes.

"I go to the mall about once a week," said Angela Lenza, 13, of Geneva. "I usually buy clothes and a CD."

For some teens, the realities of adult life influence their spending.

Al Keff, 17, of St. Charles said he works, and saves as much money as he can.

"Most of my money goes into my gas tank," Keff said.

Amanda Sesor, 16, who works in St. Charles, said she earns her own income.

"I pretty much buy everything on my own," Sesor said. "My mom would help me, but I don't like to ask."

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Source list:
· Scott Brownwell, Store Manager, Saturday Matinee, St. Charles. (630) 513-8464
· Jason Charatata, Store Manager, Record Town, St. Charles. (630) 513-8646
· Sylvia Roa, Assistant Manager, Lerner Shops, St. Charles. (630) 377-6911
· Terry Reynolds, Assistant Store Manager, Kohl's, St. Charles. (630) 377-1615
· Joan Davis, Assistant Manager, Gap, St. Charles. (630) 377-4960
· Chris Negrete, Store Manager, Pacific Sunwear, St. Charles. (630) 443-1424
· Staci Harrell, Teen-ager, St. Charles.
· Rachel Rivers, Teen-ager, St. Charles.
· Luke Blaknick, Teen-ager, Sycamore.
· Angela Lenza, Teen-ager, Geneva.
· Lauren Olson, Teen-ager, St. Charles.
· Al Keff, Teen-ager, St. Charles.
· Amanda Sesor, Teen-ager, St. Charles.
· Milwaukee Journal Sentinel, Teen Spending Soars, by Meg Kissinger
· Penny Childs, Parent, St. Charles.