September 25, 2005
Are our children overindulged?
The freewheeling spending of young consumers is causing more than just fights with Mom and Dad over the "need" for that hot new $249 T-Mobile Sidekick cell phone. It's setting them up for a future financial fall that experts say will reverberate through the economy. The Enquirer of Cincinnati reports.
"Early overindulgence is leading teens to unrealistic lifestyle expectations, weakening their work ethic and plunging them into disastrous financial practices that will haunt them for life, economists and employers say.
... Gerald Bachman, research scientist at the Institute for Social Research first labeled the phenomenon "premature affluence." "Once kids get accustomed to spending a lot, it's a difficult transition to waiting and saving."
"There's a disconnect between effort and reward," said Florida psychologist Gary Buffone... "Over time kids don't learn to deal with frustration well. They're used to getting what they want when they want it. And there's a loss of energy, ambition and motivation."
The average 18- or 19-year-old spends more than $9,600 annually, according to MarketResearch.
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