THE KIDS

MARKET IN THE
UNITED STATES

Jared Applegate, Jasmine Cain, Lyndsey Cooper, Kimberly Cureton

The Kids Market in the United States

Table of Contents
EXECUTIVE SUMMARY ......................................................................................................... 3
Introduction ................................................................................................................................................ 3
Background ............................................................................................................................................... 3
Overview of Report ................................................................................................................................. 3
Scope and Methodology ........................................................................................................................ 3
CHAPTER ONE: TRENDS AND OPPORTUNITIES .................................................................. 4
Strategic Trends ....................................................................................................................................... 4
Market Opportunities .............................................................................................................................. 5
CHAPTER TWO: MARKET OVERVIEW .................................................................................. 6
Profile of the Kids Market ...................................................................................................................... 7
Aggregate Income of Kids ..................................................................................................................... 7
Family Expenditures................................................................................................................................. 8
CHAPTER THREE: THE SOCIAL WORLD OF KIDS ............................................................... 10
Family Environment ................................................................................................................................10
Kids at School .........................................................................................................................................11
Kids and Their Friends ...........................................................................................................................11
CHAPTER FOUR: TECHNOLOGY IN THE LIFE OF KIDS ...................................................... 11
Use of Computers ...................................................................................................................................12
Kids and the Internet .............................................................................................................................12
CHAPTER FIVE: LEISURE AND ENTERTAINMENT CHOICES OF KIDS ................................. 13
Overview of Sports and Hobbies .......................................................................................................13
Kids and Consumer Electronics .............................................................................................................13
Playing Video Games ...........................................................................................................................13
Toys and Games ....................................................................................................................................14
Reading Books and eBooks ..................................................................................................................14
CHAPTER SIX: KIDS AND THE MEDIA ................................................................................ 15
Use of Print Media .................................................................................................................................16
Television .................................................................................................................................................16

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The Kids Market in the United States

Radio ........................................................................................................................................................16
Digital Media ..........................................................................................................................................17
CHAPTER SEVEN: THE FINANCIAL PROFILE OF KIDS ........................................................ 18
Family Finances.......................................................................................................................................18
Kids and Money .....................................................................................................................................19
CHAPTER EIGHT: THE SPENDING PATTERNS OF KIDS ...................................................... 20
How Kids Spend Money .......................................................................................................................20
Kids and Fashion ....................................................................................................................................20
CHAPTER NINE: THE MULTICULTURAL MAJORITY IN THE KIDS MARKET ........................ 22
Population Growth Trends ....................................................................................................................22
Media Usage ..........................................................................................................................................22
How Multicultural Kids Spend Money ................................................................................................22
Leisure and Entertainment Choices ......................................................................................................22
Playing Video Games ...........................................................................................................................23
Toys and Games ....................................................................................................................................23
CHAPTER TEN: KIDS GOING GREEN .................................................................................. 24
Eco-Friendly Trends in the Kids Market .............................................................................................24
Healthy Eating ........................................................................................................................................25
WORKS CITED .................................................................................................................... 27

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The Kids Market in the United States

The Kids Market in the United States

EXECUTIVE SUMMARY
Introduction
Some experts estimate that children between two- and fourteen-years-old spend $30 billion and
influence over $500 billion in household spending. Effectively marketing to children is very important in
building a brand, even if the brand does not cater exclusively to kids. The most popular way to market to
children is television advertisements. The increase in the number of televisions per household and the
overall lack of program supervision by parents has made this an extremely effective marketing medium
to children. Experts estimate that children aged two to five spend thirty-two hours per week watching
television, DVDs, DVR and videos, and children aged six to eleven are watching close to twenty-eight
hours per week. Much of this time in front of the television is spent alone, allowing children to be exposed
to approximately 40,000 advertisements per year.

Background
For several decades, the childrens market in the United States has been one of the most rapidly growing
markets. The most significant growth has been in the areas of child care, education, transportation, and
miscellaneous expenses. This growth presents marketers with many opportunities by not only appealing to
kids, but appealing to the concerns and desires of parents as well. As household discretionary income
allotted to children and the influence they have over their parents purchases have increased, so have the
efforts of marketers to find new ways to reach potential consumers.

Overview of Report
The kids market in the United States has generally shown consistent growth over past decades, and will
continue to grow in the future. Despite economic conditions, children will continue to grow. Which means
that the markets for products that meet the needs of these children will also continue to grow. The areas
with the most significant have been in consumer electronics and eco-friendly childrens and babies
products.

Scope and Methodology

This report is based on the research of several areas of the kids market in the United States, focusing on
children ages zero to seventeen between the years of 2005 and 2013. Sources include research reports,
press releases, articles by industry experts, and reports released by federal agencies between 2005
and 2013.

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The Kids Market in the United States

SECTION I: OVERVIEW
CHAPTER ONE: TRENDS AND OPPORTUNITIES
For several decades, the childrens market in the United States has been one of the most rapidly growing
markets. The most significant growth has been in the areas of child care, education, transportation, and
miscellaneous expenses (Lino, 2012). This growth presents marketers with many opportunities by not only
appealing to kids, but appealing to the concerns and desires of parents as well. As household
discretionary income allotted to children and the influence they have over their parents purchases have
increased, so have the efforts of marketers to find new ways to reach potential consumers.

Strategic Trends
Effectively marketing to children is very important in building a brand, even if the brand does not cater
exclusively to kids. Experts estimate that children between two- and fourteen-years-old spend $30 billion
and influence over $500 billion in household spending. Marketers cannot ignore the power that this
group has in shaping buying patterns for their entire families. They also influence decisions regarding car
choices, vacation destinations, and meals. Kids in the United States will spend near $11 billion of their
own money and influence seventy-five percent of
the purchasing decisions of their parents, which is
about $165 billion per year (Calvert, 2010).
Parents tend to purchase automobiles that have
high safety ratings and the most family- and kidfriendly features. Automobile companies who
market their cars as safe, comfortable, and having
kid-friendly features like televisions are going to
attract the attention of parents in this market.
Although marketers are not directly targeting
children, the ads are directly tied to how their product will positively affect kids. A similar strategy is
applied in marketing vacation destinations. Parents typically are not going to plan a family vacation to
a destination whose entertainment is primarily focused on the adult market, such as New Orleans, New
York, or Las Vegas. These types of destinations are not ideal for family vacations with the goal of
entertaining kids and helping parents relax. However, theme parks, Disney cruises and all-inclusive family
resort beaches are more suitable to a familys vacationing needs.
The most popular way to market to children is television advertisements. The increase in the number of
televisions per household and the overall lack of program supervision by parents has made this an
extremely effective marketing medium to children (Calvert, 2010). According to a University of Michigan

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The Kids Market in the United States

Health Systems study, children aged two to five spend thirty-two hours per week watching television,
DVDs, DVR and videos, and children aged six to eleven are watching close to twenty-eight hours per
week (Boyse, 2010). Much of this time in front of the television is spent alone, allowing children to be
exposed to approximately 40,000 advertisements per year. Traditional marketing to children includes
repetition, branded characters, catchy phrases, and celebrity endorsements to effectively establish their
brand in the minds of consumers.
The increase of the population of children with the access to digital devices such as computers,
smartphones, tablets, and the Internet has opened the door for marketers to implement new techniques,
some of which are very controversial. Stealth marketing is one such technique, which makes distinguishing
the advertisement from the program content difficult- especially for young children (Calvert, 2010).
Stealth marketing uses several advertising practices to create and increase user loyalty including
embedding products in program content, enabling children to interact with familiar characters who
promote specific products, disguising advertisements as video news releases, and collecting information
directly from children about what sites they visit most frequently (Calvert, 2010). This type of advertising
is only seen online due to Federal Communications Commission (FCC) regulations regarding the format
and time limitations for television advertising. No such regulations exist for online marketing. Another
factor increasing online marketing is its relatively low cost in comparison to traditional marketing. A
recent online promotion for Wild Planet Toys was credited with doubling the companys revenues and
only cost $50,000, compared to the $2 million it would have cost for a television advertising campaign.

Market Opportunities
There are several marketing opportunities when it comes to children and those opportunities have grown
throughout the years. However, this growth creates many concerns. One issue with this growing market is
determining a way to regulate it for companies who advertise and market their product to children
without affecting their developmental process or sending misleading information that cannot be properly
processed. The Childrens Advertising Review Unit of the National Advertising Division of Better Business
Bureau has established standards for advertising companies to follow. These guidelines and standards
have been established to prevent advertisements from deceiving children into believing that what they
see in the advertisements is exactly as it appears.
Regulations and guidelines in place are to avoid intentionally deceiving children. For example, marketers
must state things that may not be obvious to a child, such as Each sold separately or Batteries not
included. It is difficult for younger children to determine the difference between a cartoon and a
commercial that may include a cartoon character. It is customary that networks use separators between
a program and commercial by stating things such as, We will return after these messages. It has been
suggested that simplifying phrases in commercials would be beneficial for children in ways for example
you have to put it together instead of assembly required (Hawkins & Mothersbaugh, 2010 p. 702).

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The Kids Market in the United States

The platforms for marketing to children have increased over the years as technology has become more
prominent in daily life. Children are now being targeted by marketers in ways that have never been seen
before. The rise of online gaming and the push for trendy consumer products have raised issues
regarding the ethical standpoint of a company and how far may be too far. Companies have been
accused of going too far by requesting personal information in exchange for points on gaming websites
targeted to children. For example, popular superhero Batman would ask children for personal
information for a census being taking in Gotham City. Research suggests that younger children,
especially, are not developed cognitively enough to understand that Batman is not real and that they are
not actually interacting with him (Calvert, 2010).
Cell phones and tablets have become a part of daily
life for many Americans, leading to the desire for
younger children to have these products. Marketers
have tapped into these potential consumers by
attempting to develop cell phones and tablets for
children that would create a means of promoting
games, ringtones, applications, and text messages.
Advertising in online games, or advergaming, allows
children to virtually play with products in a fun
context (Calvert, 2010).
The use of cosmetics has created a market for young
girls and has led to companies creating lines of cosmetic products with characters that children are fond
of or familiar with- Hello Kitty lip-gloss, for instance. Apprehension has followed these cosmetic trends
because of the increase in eating disorders and the concerns of younger children being more fearful of
their own weight. There have also been concerns with ties between advertising and childhood obesity. An
analysis of ten popular childrens websites found that seventy percent of the sites marketed foods that
are high in calories and low in nutritional content such as fast food, candy, snacks, and sweetened
breakfast cereals (Calvert, 2010). Much of this is based on the incentives of cartoon characters being
featured in commercials or the toy included and online games.

CHAPTER TWO: MARKET OVERVIEW

In 2011, the population of children in the United States from birth to age seventeen was approximately
73.9 million which was almost twenty-four percent of the United States population. These children not
only have their own income, but influence nearly seventy-five percent of their parents purchases yearly
(USCB, 2011). Several factors contribute to the effectiveness of an advertising campaign when
marketing to children, including the profile of children in the U.S., the aggregate income of those children,
and family expenditures on children.

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Profile of the Kids Market

In 2011, in the United States, children under eighteen accounted for nearly twenty-four percent of the
total population, or approximately 73.9 million people. Of this population 24.3 million are ages zero to
five and 24.6 million are ages six to eleven (USCB, 2011). The balance of this population consists of
children ages twelve to seventeen. According to the 2011 United States Census Bureau, there were
20, 709, 065 males (6.7 percent of the total population) and 19, 840, 954 females (6.4 percent of the
total population) between ages zero and nine.
Number
(in millions)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

All Children

73.9

76.1

76.7

77.4

78.1

78.9

79.6

80.4

81.0

81.7

82.3

83.0

83.6

84.2

84.9

Ages 05

24.3

25.7

26.0

26.2

26.4

26.7

26.9

27.1

27.2

27.4

27.6

27.7

27.9

28.0

28.2

Ages 611

24.6

25.0

25.2

25.4

25.7

26.0

26.3

26.6

26.8

27.1

27.3

27.6

27.8

28.1

28.4

Ages 1217

25.1

25.4

25.6

25.8

26.0

26.2

26.5

26.7

27.0

27.2

27.5

27.7

27.9

28.1

28.3

Age

Media usage, which includes watching television, DVDs, DVR, and videos or using a game console, for
children in the United States, is at an all-time high. On average, children aged two to five are involved in
some type of media usage for about thirty-two hours per week and children ages six to eleven, about
twenty-eight hours per week. Research done by University of Michigan Health Systems in 2010 found
that seventy-one percent of eight to eighteen-year-olds have a television in their bedroom, fifty-four
percent have a DVD player, thirty-seven percent have cable or satellite television, and twenty percent
have premium channels. The considerable increase in the number of television stations and online
platforms has allowed advertisers to market directly to children (Calvert, 2010).

Aggregate Income of Kids

The market for childrens and babies products and apparel has shown steady, and significant, growth in
recent years. With this growth, marketers have had to determine how to effectively advertise to
consumers who, technically, have no real income of their own. Children in the Unites States have various
sources of income, such as receiving an allowance for doing chores or money for good grades and lost
teeth, however, parents are the primary source of income for children.
A study from the American Institute of CPAs reports that sixty-one percent of parents give their children
an allowance, and of those parents, fifty-four percent began before their child was eight years old
(AICPA, 2012). Eighty-nine percent of children who are given an allowance are expected to contribute
to the household at least an hour per week, but typically, these children spend over six hours per week

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The Kids Market in the United States

doing household chores. The amount a child is given for their allowance depends primarily on the
individual childs age, but the average allowance is approximately sixty-five dollars per month, or 780
dollars per year (AICPA, 2012). Children were reported to only save one percent of their allowance,
but if this 780 dollar annual payment were invested and received six percent interest over a fifteen year
period, these children could earn over $20,000 (Tuttle, 2012).
Many parents also pay their children for receiving good grades in school. Forty-eight percent of parents
with school-aged children use cash as an incentive at $16.60 per A, on average (AICPA, 2012).
According to a 2010 survey by Delta Dental, the Tooth Fairy was paying thirteen percent more than the
previous year for lost teeth. Eighty-six percent of the parents surveyed said that the state of the economy
did not affect their households tooth prices, which averaged $2.13 per tooth (Ferenczi, 2010).
The primary source of income for children is their parents. Whether parents provide their children with
money to spend or make purchases on behalf of their children, total household income and the
percentage of it considered to be disposable are crucial factors. A 2013 press release from the United
States Department of Commerce reported that in the period from 2011-2012 personal income had
increased 3.5 percent to $353.4 billion; disposable personal income had increased 3.3 percent to
$325.7 billion; and personal consumption expenditures increased 3.7 percent to $14.8 billion in
comparison to the previous period from 2010-2011 (Rankin, Davis, 2013).

Family Expenditures

Expenditures on a child from birth through age

17 as a percentage of total child-related
household expenditures
Housing

8%

Food
30%

18%

Transportation
Clothing

8%

Health Care
16%

6%

14%

Childcare & Education

Miscellaneous

The United States

Department of
Agriculture defines
seven categories for
child expenditures in
households which
include housing, food,
transportation, clothing,
health care, child care
and education, and
miscellaneous expenses
(Lino, 2012). All of
these categories
collectively make up
the total amount of
expenditures on kids

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Housing was the largest expenditure category among income groups, making up thirty to thirty-two
percent of total expenses for a kid in a two- child, husband-wife family. Child care/education and food
were the next largest expenditures for children, making up eighteen and sixteen percent of child
expenditures respectively, followed by transportation at fourteen percent, miscellaneous and health care
at eight percent each, and clothing at six percent (Lino, 2012).
The total expenditures on children vary depending
on several factors. These factors may include
household income level, the number of children in the
family, the age of the children, and whether the
children reside in single- or both-parent households
(Lino, 2012). A child in a two-child, husband-wife
family, annual average expenses range from
$8,760 to $9,970, with an average income of $59,
410 (Lino, 2012).
This translates to about twenty-five percent of their
income spent on child-related expenses.
Expenditures range from $12,290 to $14,320 for
households with incomes between $59,410 and
$102,870, which is about sixteen percent of total
income spent on child-related expenses. Expenditures
range from $20,420 to $24,510 for households with
incomes more than $102,870, which is only twelve
percent of total income spent on child expenditures
(Lino, 2012).
Expenditures on children are generally lower in the younger age categories and higher in the older age
categories (Lino, 2012). Regardless of the amount of income earned by each household, food,
transportation, clothing, and health care expenses for a child generally increase with age (Lino, 2012).

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SECTION II: HOW KIDS SPEND TIME

CHAPTER THREE: THE SOCIAL WORLD OF KIDS
Family Environment
According to the 2011 United States Census Bureau report, almost thirty percent of American households
had children under eighteen and the average family size was 3.14 people per household. Of these
households, twenty percent were husband-wife families, 2.5 percent were male householders with no
female present, and over seven percent were female householders with no male present. Sixty-five
percent of American children ages zero to seventeen lived with two married parents.

When kids are home, they are primarily watching television, online, or playing some type of digital
game. Seventy-one percent of children ages eight to eighteen have televisions in their room and in fiftythree percent of those households there are no rules about television watching (Boyse, 2010). Many
parents encourage their toddlers to watch television and digital media that make claims of educational
benefits. ChildStats.gov reports that fifty-five percent of children age three to six were read to every
day by a family member.

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Kids at School
Second only to being at home, children spend a large amount of time at school. Not only are children
learning academically, but socially, as well. Depending on the location, cultural values of the area, and
teaching format, schools could teach a variety of topics. For instance, a private or catholic school might
start off the day with a prayer, or have a church or bible study class, where as a public school cannot
take preference to any specific religion in classroom instruction. Public schools are typically more liberal
and open to different values and beliefs.
In general, academic performance is poor.
ChildStats.gov reports that mathematical and
reading achievement was low. Out of a possible
five-hundred points, fourth graders scored twohundred and forty-one in mathematics and twohundred and twenty-one in reading, on average.
Eighth graders scored, out of a possible five
hundred points, two-hundred and eighty-four in
mathematics and two-hundred and sixty-five in
reading, in average.
No matter the school system, or curriculum taught, it is generally a safe environment for children. Many
kids spend more time at school than at home during the week, especially if the school has before and/or
after school programs. School is also a good place for kids to acquire social skills by meeting new people
and making friends.

Kids and Their Friends

The friendship of children among one another is a major factor within the social world of kids. Children
have many friends and interact with them in many ways. They may go on play dates with their parents
and parents friends children, meet people at school or playground, or just playing anywhere there are
other children. Friendships hold great importance to children and influence important decisions.

CHAPTER FOUR: TECHNOLOGY IN THE LIFE OF KIDS

Children in the United States grow up surrounded by technology and often become more savvy users than
parents at a very young age. Teenagers and Tweens currently spend the most time per day (seven hours
and thirty-eight minutesmore than fifty-three hours per week!) interacting with technology by using
computers, the Internet or other digital media (KFF, 2012). However, a study done by the Henry J. Kaiser
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Family Foundation found that children under six typically spend the same amount of time (two hours)
playing outside as they do using screen media which includes watching television, DVD and DVR use,
playing electronic games, or using a computer or the Internet.

Use of Computers
Children in the United States use computers on a daily basis for a variety reasons. The amount of time
spent using computers and other mobile media devices by young children has risen dramatically since
2000, largely in part to the introduction of software and applications with claims of educational benefits
and are directly targeted to babies and very young
children (Garrison, 2005). Although there has been no
verifiable evidence to support these claims of cognitive
growth, most parents seem to find them to be credible.
Seventy-two percent of parents reported that computers
mostly help their children learn and allow them to spend
up to two hours engaged in screen media use, despite
recommendations by the American Academy of Pediatrics
that babies under two should have no screen time (KFF,
2003).
Children are being introduced now to media at a very young age, and increasingly through digital
platforms through educational software, interactive computer games, and digital books. Of the almost
eighty percent of American children who are read to for forty-nine minutes daily, eighty-three percent of
them are read to using some type of screen media (KFF, 2003). A study by the Kaiser Family Foundation
reports that forty-eight percent of children six and under have used a computer, and seven percent even
have their own computer. On average, twenty-seven percent of children aged four to six use a computer
daily and thirty-nine percent use a computer several times a week and more than one-third of these
children know how to turn the computer on by themselves (KFF, 2003).

Kids and the Internet

Researchers at the Joan Ganz Clooney Center of Sesame Streets Sesame Center reported in 2011 that
twenty-five percent of children six and under, many of whom cannot even read yet, have a regular online
presence and fifty-nine percent of six to nine-year-olds are online daily (Rochman, 2011). Internet
security firm AVG found that ninety-two percent of children in the United States have an online presence
before they are two, some before they are even born by one-third of their mothers uploading and
sharing ultrasound pictures on the Internet (Rochman, 2011).

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CHAPTER FIVE: LEISURE AND ENTERTAINMENT CHOICES OF KIDS

Leisure time is an important part of childrens development and is essential for every child (Hofferth and
Sandberg, 2001). Most children have plenty of free time and have numerous ways to spend it. Leisure
activities of children may include activities such as sports, playing video games, reading, or watching
television.

Overview of Sports and Hobbies

Sports are a popular leisure activity among children. Thirty-five million children a year spend time
playing sports (Youth Sports Statistics, 2012). Sixty-six percent of boys play sports and fifty-two
percent of girls play sports (Youth Sports Statistics, 2012).
Family type is important to sports participation (Hofferth and Sandberg, 2001). Children of nonworking
female-headed households spend more time in sports than children living in a traditional two parent
households (Hofferth and Sandberg, 2001). Many single parents view sports as a form of supervision for
their children as well as a positive environment for them to be in. Children in larger families spend more
time in sports. This is believed to be attributed to the influence from older siblings (Hofferth and
Sandberg, 2001). Sixty percent of children play sports outside of school as well (Youth Sports
Statistics, 2012).

Kids and Consumer Electronics

Many children in our current society use consumer electronics daily. According to the NPD Group (2009),
forty-six percent of children use cell phones and text messaging. The most popular consumer electronics
used by children, however, are televisions and computers. Seventy-four percent of children use televisions
and seventy-three percent of children use computers (NPD Group, 2009).
Other popular electronic devices used by children include digital media players, fifty-six percent, and
portable gaming systems, sixty percent. The usage of consumer electronic devices by children is growing
every year (NPD Group, 2011). Devices such as digital music players, laptops, digital cameras and cell
phones are being used by children more frequently, changing the entire outlook of consumer electronic
devices (NPD Group, 2011).

Playing Video Games

According to the National Institute on Media and the Family (2002), ninety-two percent of children ages
two and up play video games. More than two-thirds of children live in a household with a gaming
console and play video games for an average of twenty-two to thirty-three minutes a day (NIMF, 2002).

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The Kids Market in the United States

Boys tend to play video games more often than girls. Forty-four percent of boys play video games daily
compared to only seventeen percent of girls (NIMF, 2002).
On average, thirty percent of all children will play a video game daily (NIMF, 2002). The Entertainment
Software Association (ESA) reports that approximately sixty percent of all Americans over six have
played some type of video game and that kids now spend up to an hour and fifteen minutes per day
playing video games (Masnick and Ho, 2012). Ethnicity and income level are also important factors for
children playing video games. Children from low and middle income areas spend more time playing
video games than kids from high income areas (NIMF, 2002).
Recently, manufactures have developed several video games and related multimedia specifically for
young children, such as the VTech V.Smile and Leapster which are both aimed at children under four
(Garrison, 2005)

Toys and Games

The traditional toy and game market has been in
the early stages of a long-term decline according
to a 2012 Goldman Sachs industry report.
Marketwatch also reports that toy sales have
declined in every category, including
games/puzzles, action figures, and
infant/preschool. Traditional toys compete with
every childrens platform and format. With the
influx of video games and mobile devices that
share the same consumer, there is not as much
expendable income available to buy board
games, video games, action figures, and apps (Gottlieb, 2012).
The most successful toy company in the United States in recent years has been LEGO. They doubled their
revenues in the United States over 2008-2011, in spite of the flat toy market (Daujotas, 2012). Although
toys sales have declined per capita from sixty-five dollars in 1998 to sixty-two dollars in 2011, the per
capita spending for children under fourteen was up from $301 in 1998 $316 in 2011 (Tansel, 2012).
The NPD group reports that children younger than eleven make up eighty-eight percent of the toy
market, which has risen nine percent in terms of revenue since 1998.

Reading Books and eBooks

The Association of American Publishers reports that the Childrens and Young Adult category of both print
and digital formats has seen a 475 percent ($845 million) growth from 2011 to 2012 (Sporkin, 2012).

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The Kids Market in the United States

The United States book market, as a whole, declined 2.5 percent, but the Childrens and Young Adult
category grew over twelve percent to over $2.78 billion in revenues (Lee, 2012). This impressive growth
can be attributed to the popularity of book series such as Harry Potter, Twilight, The Hunger Games, and
The Diary of a Wimpy Kid.

CHAPTER SIX: KIDS AND THE MEDIA

Childrens exposure to media has greatly increased in recent years. The average eight to eighteen-yearolds home contains an average of three televisions, two computers, and two video game consoles. The
graph on the left breaks down the amount of which media has increased in the home over the last ten
years. The graph on the right shows how much time is spent with each medium by age (Rideout, 2010).
Based on these findings, one can gather that not only has the amount of exposure within the home
increased, but that the product of exposure varies with age.

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The Kids Market in the United States

Use of Print Media

Activity with print media has seen very little change. There was somewhat of a drop in magazine and
newspaper exposure, however, time spent reading has increased slightly. Again in the case of reading
more opportunities are available for children with the newer technologies. The iPad, Kindle, and the Nook
all offer a variety of titles available for young people that can be easily accessed. The chart shows the
print use of children over a ten-year span, illustrating that there was roughly a twenty percent drop in
magazine and newspaper media, but books remained relatively the same. (Rideout, 2010).

Television
Television is still the main source of media exposure to children, as it has been for several years. With the
increase in technology, there are more options available for viewing television. Devices such as tablets,
cell phones, DVR, and high speed Internet give alternatives to sitting in front of a television at home.
Children can now watch their favorite shows or movies through their devices. Websites such as Hulu,
Amazon, or Netflix allow media to be streamed to different devices.

Radio
New technology has also given children more opportunities to exposure to music. Because of the
development of mp3s and mp3 players, CDs, cell phones, and radio streaming online, children can listen
to music in ways they could not have in prior generations. The following graphics show percentages of
how children are listening. According to the graph on the left, children are listening to the radio and
streaming on computers equally- but mainly on iPods, while the graph on the right shows that they are
multitasking nearly half of the time that they are listening to music (Rideout, 2010).

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The Kids Market in the United States

Digital Media
There are many prospects for digital media exposure through new technologies; it is also far more likely
that a younger person will now own a computer or consumer electronic of their own. Media usage has
greatly increased with new technology, including computer use. Children now spend their spare time on
computers to social network, play games, e-mail friends, and read. The graphic below shows a
breakdown of childrens uses of the computer based on their parents education, race, gender, and age.
This highlights difference that can be found in viewing habits. For example, girls spend more time on
social networking sites, while boys spend more time playing games (Rideout, 2010).

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SECTION III: HOW KIDS SPEND MONEY

CHAPTER SEVEN: THE FINANCIAL PROFILE OF KIDS
Family Finances
A familys finances can be
affected by both their own
decisions and the state of the
economy. The Federal
Reserve Boards Survey of
Consumer Finance (SCF)
reports that from 20072010, the United States
economy experienced its
worst economic downturn
since the Great Depression
(Federal Reserve Bulletin,
2012). During this same
period, the unemployment
rate rose from 5.0 percent to
9.5 percent and average
family income fell 11.1
percent. This decline was felt
primarily in the top 10
percent of the income
distribution and for higher
education or wealth groups.
By 2010, 25.3 percent of
families felt that their income
for the previous year was
unusually low and 35.1
percent of families reported that they did not have a good idea of what their income would be for the
next year (Federal Reserve Bulletin, 2012).
The spending and saving habits of families are important factors that affect their familys finances. In
2010, 6.0 percent of families reported that their spending usually exceeds their income; for 19.6 percent
of families, the two were usually about the same; 34.8 percent reported that they usually have enough
left over to save; and 39.6 percent of families save regularly. As reported by the SCF, the percentage

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of a familys income that had been saved fell from 56.4 percent to 52.0 percent from 2007-2010
(Federal Reserve Bulletin, 2012). This was greatest decrease in savings level since the SCF began
collecting information in 1992.
The amount of debt that a family has is another important factor when determining a familys finances.
The SCF reports that during the period of financial recession (2007-2010), overall family debt
decreased 2.1 percent reversing an increase that has been consistent since 2001 (Federal Reserve
Bulletin, 2012). Families in higher income groups, couples with children, and families headed by someone
in a managerial or professional position have noticeably higher rates of debt than families in lower
income, wealth, and education groups. These families tend to have fewer economic resources and are less
likely to create much debt.

Kids and Money

According to the American Institute of CPAs
(AICPA), the average child in the United
States receives about $780 of allowance per
year. Most children are expected to earn
their money by helping their parents. About
ninety percent of children that earn an
allowance are required to do chores around
the house (Tuttle, 2012). Children, on
average, spend about 6.2 hours a week
doing chores to earn their money (Tuttle,
2012). The average allowance per week for
a child is about sixty-five dollars (Tuttle,
2012).
Children tend to spend their money rather than saving it. Only about one percent of parents say that
their children save any money at all (Tuttle, 2012). Most children use their allowances to buy toys and
hang out with their friends (Tuttle, 2012). Not all children, however, spend their money the same.
According to The Boy Scouts of America (2011), twenty-three percent of parents place no restriction on
what their children buy. Other parents give their children money for specific purposes. Around eighteen
percent of parents give money to children for savings accounts, thirteen percent of parents give money to
children for non-essentials such as toys, games, etc., and ten percent of parents give money to children for
essentials such as lunch money (Boy Scouts of America, 2011).
The amount of allowance a child receives also correlates with the number of siblings they have. The more
kids a family has, the more likely those children are to receive an allowance from their parents (Boy
Scouts of America, 2011). Children with no siblings are the least likely of all children to not receive an
allowance (thirty-six percent) from their parents (Boy Scouts of America, 2011). About thirty-one percent
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The Kids Market in the United States

of children in two-child families dont receive an allowance and twenty-nine percent of children in threechild families dont receive an allowance (Boy Scouts of America, 2011).

CHAPTER EIGHT: THE SPENDING PATTERNS OF KIDS

How Kids Spend Money
Allowance is the biggest influence in how children attain money. Most parents base their childs
expenditures on their age and the work accomplished within the household. Other factors in allowance
may include grades, number of children within a household, childs behavior, and family income.
According to the job search engine, Simplyhired.com, the average income of a teenaged babysitter is
$6.25 an hour to $9.73 an hour. The U.S. Department of Labor states that fifty percent of American teens
hold jobs similar to babysitting by age twelve. A student on average works twenty to thirty-five hours per
week. ("Middle earth," 2010). This means that on average working twenty hours a week at $6.25 an
hour a twelve year old could have as much as $125 a week. Theoretically, if half of that was to be
saved and the other half spent teens are consuming an average of $62.50 of product per week, $3,250
a year.
But what are they spending it on? Teens are best at putting themselves first with thirty-four percent to
clothing, twenty-two percent for entertainment, and sixteen percent for food. A survey done by seventeen
magazine showed that despite the recent recession seventy-five percent of teens spending habits had not
changed since the previous year. (Finch, 26 M)
Statistics show that an average of 2.7 percent of thirteen to fourteen-year-olds, 5.3 percent of fifteen to
sixteen-year-olds, and 10.6 percent of seventeen-year-olds have credit cards. 15.2 percent of them
make their monthly payments while 11.2 percent of parents of teens with credit cards make the payments
for them. 51.9 percent of credit card use is for gas while 62.8 percent goes to clothing and fashion. By
the time these teens have jobs of their own typically they are not still receiving an allowance. ("Money
statistics")

Kids and Fashion

The NPD Group reported in 2008 that mothers, on average, spend up to twenty-three percent of their
discretionary income on their childs (or childrens) clothing. This represents the largest single category of
mothers discretionary expenditures on their children, with forty-eight percent going to entertainment
expenses (toys, games, activities, books, video games, consumer electronics, etc.), and twelve percent
being spent on fast food and beverages (NPD, 2008). The National Retail Federation reports that
parents will spend, on average, $688 per child on back-to-school shopping alone (DInnocenzio, 2012).
According to the NPD Group, parents will reduce spending on their clothing during an economic recession,
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but spending on their children is typically

unaffected. Chief industry analyst Marshal
Cohen reported that although the entire
United States clothing industry was down
six percent, babies and childrens apparel
had only declined by three percent and
that parents tend to represent their own
post-recession financial stability through
their children (Reference for Business,
2010).
Gucci
While national brands, such as Carters,
Gymboree, and Gap, remain leaders in
the babies and childrens clothing industry,
luxury adult designers have experienced
strong and steady growth. The childrens
apparel market in the United States
Dior
D&G
reported $34 billion in sales in 2011, with
luxury childrens wear showing the
strongest growth within the market at
seven percent, representing just over three percent of the total market (NPD, 2012). The increases in the
populations of young GenY parents and Baby Boomer grandparents, who demand trendy or unique
clothes and products, have been the biggest influences to the growth to the childrens luxury market (RFB,
2010).
Another emerging market in childrens apparel is plus-sized versions of popular styles. The Unites States
Centers for Disease Control and Prevention have estimated that seventeen percent of American children
are obese, and the numbers continue to increase (Peck, 2010). In a report by MarketResearch.com,
childrens marketers are taking note from the already lucrative womens and girls plus-sized market,
which accounts for twenty-seven percent of total clothing sales and almost forty percent of womens and
girls clothing sales with $47 billion in annual sales in 2009. The plus-sized market increased 1.4 percent
despite overall womens apparel sales falling 0.8 percent (Peck, 2010).

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The Kids Market in the United States

SECTION IV: EMERGING CONSUMER TRENDS

CHAPTER NINE: THE MULTICULTURAL MAJORITY IN THE KIDS
MARKET
Population Growth Trends
Based on the 2000 Census the population of races outside of whites and African Americans has been on
a steady rise since the 1970s (Hobbs & Stoops, 2002). The most recent Census collected in 2010 shows
that the Hispanic population will grow to 128.8 million by 2060 meaning that one in three U.S. citizens
would be Hispanic. The Asian population is also expected to double. Based on the results it is expected
that The United States will be a minority-majority nation for the first time by 2043. (U.S. Census Bureau,
2012)

Media Usage
Childrens media usage continues to dramatically increase. It was reported in an article by the Kaiser
Family Foundation that Hispanic and African American children spend far more time with various types of
media than white children do. All different cultures of children are exposed to the same types of media;
Internet and social media, television, music, print (Sinhg, 2010).

How Multicultural Kids Spend Money

According to a research study done by Nickelodeon Asian American children are reported to earn the
highest of allowances. This is most likely due to the fact that they generally come from two parent
families with two incomes. It was also found that white children appear to receive the smallest amount of
allowances. There is also varying differences in how children earn their allowances. Eighty percent of
Hispanic childrens allowances are reliant on chores.
Spending habits among children show little differences. Children across all the cultures represented, aged
sic to fourteen, showed to spend most of their money on food, toys, games, clothes, and music. However, it
was shown that Asian children are likely to save some or most of their allowances while African American
and Hispanic children are more likely to spend it. ("Marketing Sherpa," 2004)

Leisure and Entertainment Choices

According to Hofferth and Sandberg (2001), race and ethnicity affect most leisure activities of children.
Some leisure activities of children are viewed as traditional for their culture. Hispanic children typically

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The Kids Market in the United States

do more chores around the house than children of different ethnicities (Hofferth & Sandberg, 2001).
Hispanic children also spend more time eating than other children (Hofferth & Sandberg, 2001). Asian
families emphasize the importance of learning to their children. Asian children typically study more than
the majority of children (Hofferth & Sandberg, 2001). Black children tend to be more involved in churchrelated activities than other ethnicities of children (Hofferth & Sandberg, 2001).
The majority of childrens free time in the United States is spent playing, talking, and hanging out with
friends (Larson, 2001). Children in the United States play 1.5 to 3 hours per day (Larson, 2001).
Children in the United States also watch 1.5-2.5 hours of television a week, which is the same duration for
Asian and European children. Playing sports is another leisure activity of children. Children in the United
States play sports for thirty to sixty minutes a week, which is a longer time compared to Asian children,
zero to twenty minutes, and some European children, twenty-eighty minutes per week (Larson, 2001).

Playing Video Games

According to the Henry J. Kaiser Family Foundation (2002), ninety-two percent of children play video
games. White children spend less time per day playing video games than other young people do
(Northwestern University, 2011). Children generally
play video games using a gaming console, mobile
device, or handheld game player. White children, on
average, play video games for fifty-six minutes a day
(Northwestern University, 2011). Black children, on
average, play video games for an hour and twenty-five
minutes a day, Hispanic children for an hour and thirtyfive minutes, and Asian children for an hour and thirtyseven minutes (Northwestern University, 2011). Hispanic
children average the most time spent per day playing
video games on a console at forty-five minutes per day (Northwestern University, 2011). Asian children
average the most time at twenty-eight minutes per day playing video games on mobile devices and
thirty-two minutes on handheld game players (Northwestern University, 2011).

Toys and Games

When children play, they often use toys linked to TV shows and movies (Teachers Resisting Unhealthy
Childrens Entertainment, 2009). These toys often cause children to reenact the stories they see on
television rather than using creativity to create play scenarios (TRUCE, 2009). Marketers spend around
$15 billion advertising toys to children (TRUCE, 2009). Toys allow children to be in charge of playtime
and promote respectful, non-violent interactions among children (TRUCE, 2009).

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The Kids Market in the United States

CHAPTER TEN: KIDS GOING GREEN

According to a recent challenge put on by EPA Region 8, kids know
more about going green than theyre getting credit for. Kids are
aware of several going green activities, which include recycling,
planting trees, or changing light bulbs (Drew, 2011). This contest
really opened everyones eyes about what kids really know about
going green.
Livestrong.com sates that kids learn about going green from the
influence of their guardians. It is a very healthy lifestyle to start
children out on at a young age when they will just pick up the habits.
It is as easy as teaching children to turn off the sink while brushing
teeth or turning off the TV and lights when they are not being used.
This teaches children how to conserve energy (Murphy, 2010). It has
also been found that introducing children to farms and to where food
is grown or where it comes from will help them make smarter choices
when navigating food industry trends now and in the future (Murphy,
2010).
Kids-Going-Green.com reports that the earth is heading towards an energy crisis due to peoples
continued increase in their energy use. Many experts feel that there may not be enough energy for kids
to do the activities they currently do most, such as watching TV or playing video games. In order to
motivate kids to want to take part in going green, it is very important to empower kids by giving them
the education and tools necessary to do their part (Ipantenco, 2010). According to Kids Health reports,
there are many small things kids can do that can add up to making a big difference. Teaching kids to
respect nature by cleaning up parks or helping them plant a garden shows them how going green can
affect them.

Eco-Friendly Trends in the Kids Market

Environmentally friendly, naturally-made, and organic childrens products have seen one of the largest
market increases in recent years. These items include a wide variety of products, such as natural cleaning
products, clothing and shoes from socially responsible manufacturers, green toys and dolls, non-toxic
plastics in bottles, cups and packaging, and organic and natural baby products (SafBaby, 2012).
According to online retailer Amazon, the category of green toys could indicate several eco-friendly
options or practices. Toys made from wood of rubber trees that have been abandoned after they have
been harvested to produce latex are being manufactured by some toy companies. These trees are also
grown without the use of pesticides. Bamboo toys are also a popular green option. Bamboo is light,
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The Kids Market in the United States

flexible, and is easily grown without needing much water. An entire bamboo forest can be regrown in just
three years after being harvested (Amazon, 2012).
Social responsibility of brands and manufacturers is another popular trend in the childrens green
products market. Parents not only do research on the safety features or price comparisons for purchases
for their children, but they place considerable weight on the manufacturing practices of the brand. Some
issues that have become important to parents include environmentally-friendly packaging, reducing
packaging wastes, and sustainable building designs that reduce the brands carbon footprint. These
designs may feature salvaged woods, energy-efficient lighting, or recycling options to trash disposal
(Amazon, 2012).
The baby and child-specific
products market grew seven
percent in 2011 and is
expected to grow to almost $2
billion in global sales by 2017more than any other personal
cleaning products
care product category
non-toxic plastics
(Walker, 2012). With seventy
percent of mothers
participating in online
communities and sixty-eight
percent relying on word-ofmouth recommendations,
developing customer loyalty
early is crucial in todays
baby care
toys
market (Mason, 2009). Mothers
arts & crafts
not only tend to be loyal to the
first brands they use, their concerns for their babies well-being has parents choosing organic or natural
baby products. Despite variations in the economy and personal income, overall, parents are unwilling to
compromise on the personal care products for their children. Private label brands currently dominate the
market and generally marketed to a higher-income demographic, leading brands like Johnson&Johnson
and Aveeno have more affordable and available options for lower-income consumers (Lennard, 2011).

Healthy Eating
The American Psychological Association reports that many American children are not receiving the proper
nutrition need for healthy development, strong growth, and lifelong well-being and estimate that one-

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The Kids Market in the United States

third of children (ages six to seventeen) are overweight and one-sixth are obese. Although unhealthy
foods remain popular, the concerns of parents and pediatricians about their childs dietary health have
resulted in growth of the organic-food industrys sales to $31.5 billion in 2011 (Turner Investments,
2012).
The availability and cost of natural and organic foods has traditionally been an obstacle to the general
population. The industry has traditionally been led by specialty stores that cater to more affluent
consumers, but in recent years, the growth of these stores has made them more accessible and affordable
to a larger segment of consumers (Turner Investments, 2012). Although overall household spending on
groceries decreased from $57 per trip in 2011 to $48 per trip in 2012, over forty percent of consumers
reported that health and wellness products are worth spending a little more on, according to a study
done by researchers at Booz and Company for the 2012 U.S. Grocery Shopper Trends report (FMI,
2012). Almost eighty percent of grocery shoppers reported reading nutrition labels, looking for locallygrown products, and being willing to pay more for organic products.

Health, Wellness, and Sustainability Behaviors

of Shoppers by %

64% read nutrition labels in

stores
30% are willing to pay more
for organic products
48% look for locally-grown
products when shopping

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WORKS CITED
Boy Scouts of America. (n.d.). Youth Allowances. Kids Money.
Amazon. (n.d.). Amazon and the Environment. Retrieved March 2013, from amazon.com.
American Institue of CPAs. (2012). AICPA Survey Reveals What Parents Pay Kids for Allowance, Grades.
Calvert, S. L. (2008, Spring). Children as Consumers: Advertising and Marketing. The Future of Children, 18(1),
205-225.
D'Innocenzio, A. (2012, August 12). Designer Kids Clothes Sparking Huge Increase in Household Spending.
Retrieved from The Huffington Post.
Federal Reserve. (2012, June). Changes in U.S. Family Finances from 2007 to 2010: Evidence from the Survey
of Consumer Finances. Federal Reserve Bulletin, 98(2).
Kyla Boyse, R. (2010). Television and Children. University of Michigan Health System.
Lennard, C. (2011, January 20). Baby Care Market Report. GCI Magazine.
Lino, M. (2012). Expenditures on Children by Families, 2011. U.S. Department of Agriculture.
Mason, S. (2009, April 7). Parents Look to Nature for Baby Care. GCI Magazine.
McNeal, J. (1987). From Savers to Spenders: How Children Became a Consumer Market. Children as
Consumers: Insights and Implications.
Mothersbaugh, D. H. (2010). Consumer Behavior: Building Marketing Strategy. New York: McGraw-Hill/Irwin.
Peck, S. (2010, August 4). The Big Market For Big Kids' Clothes. Retrieved from Forbes.com.
Reference for Business. (2009). Children's and Infants' Wear Stores. Encyclopedia of Business 2nd Edition.
Rochman, B. (2010, October 8). Who's Linked In? 7% of Babies Boast Their Own Email Address. Retrieved from
Time.com.
The Henry J. Kaiser Family Foundation. (2003). New Study Finds Children Age Zero to Six Spend As Much Time
With TV, Computers and Video Games As Playing Outside.
The Henry J. Kaiser Family Foundation. (2005). A Teacher in the Living Room.
The NPD Group. (2008). Kids' Share of Wallet.
Tuttle, B. (2012, August 27). TIME Business. Retrieved March 2013, from http://business.time.com
Walker, Rob; Euromonitor International. (2012, September). Baby Care Shows Dynamism in Face of Aging
Demographics, Slowing Economies. GCI Magazine.

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