We all know that youth like to spend (their parents) money, but what factors influence their decision-making process?
This week, our Global Youth Survey explores the spending habits of young people ages 14-29 around the world. Across all surveyed countries, the most popular purchase-influencers are friends/family and online reviews.
- 43% of respondents decide which products to purchase by doing online research
- 40% say they get advice from family and/or friends
- The other 17% are influenced by TV/magazine advertisements, product design, or just make ‘on-a-whim’ purchase
decisions
Men and women take completely different routes in deciding what to purchase. While women like to get advice from their friends and family, men like to dig in and do their own research. “I would ask my mom and friends first, then look at reviews in different magazines and newspapers,” says one 28-year-old female respondent from Hong Kong.
- 50% of male respondents do research compared to just 33% of women
- 45% of women rely of the advice of people they know, compared to 36% of men
It seems that older consumers are more inclined to do research before making a purchase decision than youngsters are. According to a 25-year-old Malaysian respondent, ” I usually go to online forums for ideas, but I seldom ask my friends’ advice. I make my own choices.”
- 60% of 14-17 year old respondents rely on the advice of friends and family compared to just 36% of 25-29 demographic
- 48% of 25-29 year olds say they do research compared to 38% of 14-17 year olds
One thing everyone agrees on across all surveyed countries is that the products are an extension of our identity.
- 86% of all respondents agree that the products someone purchases, wears and uses help describe his or her personality
Spending habits also vary greatly by geographic area. While respondents in Hong Kong and the US tend to spend more money on clothing, Amsterdam and UK respondents spend the bulk of their cash on their social life and going out at night. Singapore and South Korea are the only surveyed places where the majority of money is spent on food.
- Majority spending by country:
|
Country |
# 1 Spending |
#2 Spending |
#3 Spending |
| Amsterdam | Going Out (32%) | Clothing (26%) | Food (23%) |
| Hong Kong | Clothing (40%) | Food (28%) | Car/Transportation (12%) |
| Malaysia | Car/Transportation (28%) | Food (16%) | Going Out (16%) |
| Singapore | Food (45%) | Clothing (27%) | Entertainment (14%) |
| South Korea | Food (30%) | Clothing (25%) | Entertainment (15%) |
| United Kingdom | Going Out (30%) | Clothing (15%) | Phone/Phone Bills (10%) |
| United States | Clothing (52%) | Food (22%) | Music (13%) |
There are also major differences in the spending habits of men and women. While men like to spend their moolah on food and going out to restaurants, women would rather shop till they drop.
- 40% of women spend a majority of their money on clothing compared to just 12% of men
Money is spent on a wide variety of things, but clothing ranks right up there with food, showing just how essential it is to look good.
- 24% of respondents spend the majority of their money on shopping for clothing and food
- 15% say they spend their money on going out
Only 3% of respondents say that they spend their money on rent, and less than 1% spend money on bills. It’s great to be young and still live under your parents roof!
Will these spending habits change within the next five years? Depends on who you ask. The consensus among all respondents is nearly split down the middle with a slight majority saying that their spending habits will not change. The difference shows up with age:
- 58% of 25-29 year olds say that their spending habits will change
- Only 40% say it will in the 14-17 year old demographic
This is largely due to life stages. According to a 19-year-old male respondent from Hong Kong, “I would upgrade my dining standards if I was to be making more money.” Wouldn’t we all. “My spending habits will change since I’m planning on starting my own family in the near future,” says a 28-year-old Malaysian woman.
1 response so far ↓
1 Amit Gajakosh // May 12, 2008 at 4:43 am
The article is comprehensive. But are there any references that can be cited by the author.
thanks
Leave a Comment