Today’s teens are the most affluent generation of young people to date. Over one-third receive some kind of allowance from their parents, and nearly three-quarters work around the house to earn it.

However, a new report shows that although teenagers are highly motivated by money and the myriad products and services for which it can be exchanged, they can also be naive about the consequences of reckless spending and sloppy money management.

Though arguably one of the most privileged and self-aware generations of modern times, these 24.8 million trendy and hyper-brand-aware adolescents age 12-17 are also among the least-educated and most undeserved in terms of personal finance and money management.

Teen girls have generally been regarded as the primary spenders. This has now shifted. For example, teen boys are the new darling of the health and beauty industry spending an estimated $2.1 billion on personal care in 2003. Teen boys buy shampoo and hair gels, often spending on hair colouring, too. They also purchase their own soaps, deodorants, shaving products and moisturisers. This new target market represents an entirely new opportunity for marketers of many
products.

As a cohort they represent an $80 billion market, but teens’ immaturity and often unrealistic expectations of their own imminent wealth lead parents and educators to encourage teen saving but to doubt that other financial products- especially those that facilitate spending- are in the best interests of their kids.