Socks, pants, shirts, chocolates, and a couple toys – that’s how I remember my childhood Christmas, and I absolutely loved it! And what about kids nowadays? Well they get mp3 players, tablets, video game consoles, phones, laptops, and the list goes on. A little spoiled I’d say, wouldn’t you? The average spending per child has substantially increased over the years, but by how much? Let’s analyze (source)!
The average planned spending per child is:
$289 (1985) vs $882 (2015)
Of course, we need to take inflation into account. When doing this, the inflation-adjusted comparison looks like:
$399 (1985) vs $882 (2015)
I bet you thought inflation would increase it more – nope! This means we spend two times more on kids nowadays than we did back in 1985. Why is this? Is it a competition thing? Caring factor? Or are parents simply getting weaker and unable to tell their kids “NO”? To figure this out, we definitely need some concrete data to crunch. Let’s get Down 2 the Numbers (source):
Facts about Millennials
30% live at home with their parents (vs. 27% in 1990)
60% choose to Rent rather than Buy (vs. 52% in 2005)
Median marriage age is over 30 years (vs. 23 years in 1970)
So this tells us that Millennials (those born between 1980-2000) are saving a ton of money with big expenses: houses, cars, and marriage. One might draw the conclusion that this saved money goes towards smaller purchases (aka presents for the kids). Well that’s not so bad then, right? Let’s put this topic to rest…
MPS Verdict = Spending money anyways? Then there’s nothing wrong putting your kids first.