U.S. Teen Spending Rebounds by 6 Percent

A new industry survey finds that teenage annual spending has recovered to an estimated $65 billion.

Updated on Oct. 21, 2026 in Spending

U.S. Teen Spending Rebounds by 6 Percent

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U.S. teenagers increased their annual spending by 6 percent year over year, reaching an estimated $65 billion total. On average, each teen reports spending approximately $2,350 annually despite widespread concerns regarding the economy.

Why it matters

The rebound in teen spending highlights a shift in consumer behavior and fashion preferences even as a majority of teens express pessimism about the broader economy. High-income teens contributed significantly to the growth, with spending in that demographic rising 11 percent.

Teen annual spending reached an estimated $65 billion, with average expenditures per teen at $2,350. While apparel spending rose 7 percent, footwear spending saw a 1 percent decline.

The players

Piper Sandler

This is a financial services firm known for its research reports, including the semi-annual survey of thousands of teenagers.

Coach

This is a luxury fashion house and retailer that maintains a dominant position in the teen handbag market.

The details

Teens are increasingly moving away from athletic apparel, which saw its fashion share decline to 29 percent, in favor of specialty retailers which now account for 23 percent of fashion mindshare. Additionally, 44 percent of upper-income teens are now purchasing clothing from secondhand shops, and Coach currently holds a 60 percent share of girl handbag preferences.

In 2025, average teen spending decreased by 6 percent.
During fall 2025, 62 percent of teens believed the economy was worsening.
In spring 2024, Coach captured 23 percent of girl handbag preference.
As of fall 2026, teen spending rebounded with a 6 percent annual increase.

Market Dynamics

The shifting preference toward specialty retailers and secondhand markets marks a departure from the long-standing dominance of athletic apparel brands among youth demographics. This trend forces major retailers to recalibrate their inventory strategies to match changing consumer habits.

Retailers that rely heavily on athletic apparel may see shifts in their market position as teen buyers move toward specialty and secondhand options. Investors should monitor how brands like Coach continue to capture wallet share among younger consumers.

The takeaway

Teens are demonstrating increased spending power despite being largely pessimistic about the national economy. Consumers may find more variety and lower costs by exploring the growing secondhand and specialty retail segments currently favored by younger generations.