Kids and Spending
Research shows that children in the United States spend lots of money. Before 1990, spending by children ages 4 to 12 almost doubled every 10 years. In the 1990s, it tripled. Currently, children spend $40 billion every year.
Of course your own children don’t spend all that money, but if they’re like most kids they do spend their allowance or money from a part-time job on games, movies, food, and activities.
Cash or Credit?
How do your kids spend their money? The most common method for kids is cash, and sometimes kids use gift cards.
Cash is considered the best way for kids to spend their money because they are too young to use checks and credit cards, and cash is easier for kids to keep track of. When it’s gone, it’s gone.
How Do Your Kids Spend Money?
We want to hear from you. Do you agree that cash is the best method? When your child is older but not yet an adult, would you open a debit card with your child or co-sign on a credit card?
Packaged Facts, “The Kids Market in the U.S.,” seventh edition, a Packaged Facts report, May 1, 2006.
James U. McNeal, The Kids Market: Myths and Realities (Ithaca, NY: Paramount Market Publishing Inc., 1999).