Teen Values. Among teens today, "pinching pennies is a competitive sport; a test of cunning and a point of pride," reports Ruth Laferla in The New York Times. "It's kind of a skill to find cool clothes for cheap money," confirms Tom Bettridge, 15. It's also kind of a necessity: "It's almost impossible to get all the new clothes and music you want at full price," he admits. But still, it is kind of cool: "The real bonus," says Tom, "is that you know -- and that other people know -- when you've scored a find." Tom's outlook may be anecdotal, but it is supported by this surprising statistic: "Spending by teenagers has dropped four percent in the last year to $158 million, according to Teenage Research Unlimited."

As a trend, this one certainly looks contrarian. Of course, adolescent "self-esteem and standing with peers has been and still is measured largely by the heft of his or her pocketbook and penchant for living large ... and it may still be true that few can resist the blandishments of high-tech gadgets like the iPod Nano, Motorola Razr or Sony PSP." No doubt but that teens still pressure "their parents to pay for such high-ticket expenditures as cable on demand, a satellite car radio system, TiVo or additional cellphone minutes." Observes Tina Wells of the Buzz Marketing Group: "It's not so much that teenagers are spending less in total than they always have, but that they're wising up about what to spend it on."

Like fashion and beauty, most especially -- and that's good news for value retailers like Kohl's and Bed Bath & Beyond, which seem to be peeling away teens looking to spend less on things like jeans, lipstick and dorm decor. It's also a boon for online retailers like Overstock.com, which reports a surprising "97 percent growth in users under age 24." Says Tina Wells: "I like to call them the Google generation ... People forget that access to the web is completely changing the retail scenario." And it's not just peers who are impressed by this new-found frugality: "I just love to watch her shop," says Susan Yosca of her 15-year-old daughter Gaby."I can give her $50 and she comes up with a wardrobe."

Tim Manners
editor