One of the most startling statistics to come out of the Statistic Brain Research Institute Report centers on teens' total annual spending—which sits just shy of $259 billion annually—is that they’re spending more than they earn. It seems that deficit spending has become a habit among teens.
If this figure is accurate, it means that teens are spending nearly triple what they earn. So where's the extra money coming from? The bank of Mom and Dad, of course. The report found that parents contribute roughly $158 million to the teen spending phenomenon every year.
Although it might seem harmless now, the spending habits of teens carry into their adult lives, where running a deficit can have huge consequences. Ensuring that teens have the most relevant tools and education to assist them in balancing their budgets will create habits that set them up for future success.