Young Consumers Hit Hard By Economy: Report

NEW YORK — Young consumers battling the weak job market and struggling to pay off student loans are no longer the free spenders they once were, a new report from WSL Strategic Retail indicates.

“The youth market, which has traditionally been known for its enthusiastic spending of discretionary income, has virtually dried up,” said Candace Corlett, president of WSL.

The How America Shops MegaTrends report: Moving On 2012, which surveyed nearly 2,000 consumers, found that 52% of people say they are struggling to afford to pay for their basic needs. People age 18 to 34 had the highest percentage of people who said they did not have enough money to pay for the necessities.

In addition, the report found that some people in higher income brackets are also feeling financially insecure in today’s economy, with 30% of those making $100,000 to $150,000 a year saying they can only afford the basics.

Other findings:

• 68% regularly use coupons to reduce costs — up 7 percentage points. vs. 2010.

• 45% claim they only buy items that are on sale — also up 7 percentage points.

• 43% make a point to search online for store discounts before they shop — up 10 percentage points.

• 14% of women say they use their mobile phones while in store to see if they can find a lower price, before they buy.

• 66% have a “cautious pause” before buying to ask, “Is this a smart use of my money?”

• 58% are managing their aspirations by sticking to brands and stores they can afford.

• 48% are staying out of stores where they might be tempted to overspend.

• 43% are buying less when they go shopping.