Kids’ income returns to pre-GFC levels
Research conducted by The Cartoon Network has found children’s income has returned to pre-GFC levels.
The annual ‘New Generations’ study found that 3.1 million Australian children between four and 14 have a collective spending power of $1.5 billion, or an annual $499.40 per individual. It found children between four and 14 to be receiving less money across ‘pocket money’, gifts and paid work (chores etc.), but up across all sources for children seven to 14; up eight percent from pocket money, three percent from gift money and up 43 percent from paid work. The sharp year-on-year increase in paid work in the seven to 14 demographic may reflect the older member’s part-time roles and growth in the number of these roles.
The research claims kids significantly influence purchasing from discretionary spending, with parents’ 1.5 times more likely to make a purchase when requested by their children.
Marketing spoke to Peter Hammer, research manager at Cartoon Network, in anticipation of the report’s release.
Hammer explained that online spending has remained relatively stable across the previous three years in this demographic, despite media sensationalism around its growth. “Some interesting findings there are that regional Australian families are participating more than the metro families.”
Hammer explains many of the estores these regional families were browsing were online only. The online purchasing growth in this demographic includes digital products and there has been a year-on-year increase in App purchasing. Conversely, there’s been a decrease in DVD/CD spend.
29 percent of kids in the seven to 14 split reported having made an internet purchase – static on recent years. Hammer said the findings still show TV as the dominant media kids consume in order to be informed about digital products, toys, movies.
The full report will be launched tomorrow. Marketing’s analysis will follow shortly.
Surveyed children were asked if they were given a $100 gift card where they’d most like to spend it. The top three choices were EB Games, Kmart and Big W.