Teenagers: employment and contributions to family spending

As most parents with teenagers know, their children between the ages of 14 and 17 receive a major portion of family income. The latest U.S. Department of Agriculture estimates of family expenditures on children indicate that middle-income families spend between $9,390 and $9,530 per year on the typical teenager. Although teenagers are a major expense, they can offset some of their expense and even contribute toward their family’s economic well-being by attaining employment in the labor market and contributing to the family budget. According to a recent report by the Department of Labor, 2.9 million youths aged 15 to 17 worked during the school months, and 4.0 million youths worked during the summer months, over the 1996–98 period. Previous research on teen employment has primarily focused on the incidence and patterns of work, and the effects on the teenager’s educational attainment, future employment prospects, and other developmental outcomes. Some of this research suggests that teenage employment can have detrimental effects, such as lower educational attainment. J.G. Bachman suggests that employment provides youths with “premature affluence.” One marketing study suggests that in 1999 teens spent $105 billion of their own money and influenced $48 billion in family spending. Teen Employment and Spending