chapter+2+literature+review

Chapter 2: Literature Review
Teenagers are big spenders. They see something they want, they have to have it. The problem with this is that it makes it harder for them to understand the difference between a need and a want. If they get everything they want when they are younger, they might think it's a need when they are older. Or worse, they might not think of the important expenses such as bills as any more important then getting a brand new car. They need to understand what is important.

In an article by NOP World (2003) on teens buying behavior stated that Teens spend in a wide variety of categories, from durable products such as clothing, CDs, video games, and jewelry to nondurable, such as food, soda, snacks, and ice cream. Some specific observations about Teen behavior and purchase intent include clothing topped the list of both what Teens planned to buy and what they actually purchased. Entertainment items, such as video games, CDs, and magazines, figured prominently on Teens’ planned purchases and what they actually bought. Food, candy, and soda were the most common items recently bought. It is similar to Josh Dolin (2003) finding. He illustrates that teens spend their money to foods, clothing/accessories, gas, music/entertainment, technology, and recreation. In Study conducted by Irene Leech (2004), she explains that the national consumer-skills test covered the kinds of transactions teens might make, such as food purchases, home rentals, credit, checking and savings accounts, auto insurance, and auto purchase.

One of troublesome problems is addressed by Nanna Cross (2004), the teenager isn’t going to be thinking about the cost. A lot of teens work and have their spending money. What they will be thinking about is the taste and the convenience. However, summer (2006) found a result that contradicts Nanna Cross’s finding. Summer (2006) found that teens are becoming more responsible for handling money and making decisions for everything from small, everyday purchases to bigger-ticket items (such as a bike or a camera) to saving for college. M.F Warnaar (2004) implies that the majority of Dutch teenagers evaluated their way of spending money as considerate, at least according to themselves.

Saving money may not be as much fun as spending money, but it’s still important to do. In a study by Wayne Parker (2005), he states that teens need to start saving early. This is because they do not know what will happen to them for the next day. Based on Sandra Selly (2004), she comments that teens had to work hard for their money and know how hard teens get the money.

In a study conducted by Sandra Selly ( 2004), she describes while teens were young, parents are the best person to advise their children the right way to manage their money. She also points out that parents should draw up their children spending pattern. The other way is parents also can sit together with their children because their children are old enough to give responsibility to manage their money. This finding is similar with Wayne Parker’s finding. However, TeenAnalyst.com (2006) found a result that contradicts Sandra Selly and Wayne Parker. Teen Analyst states that teens must teach themselves to be a saver. It's always important to have a plan to save and stick to it and also be a good investor.