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I'm -- -- and this is Chris Cotter.
Hello -- child born in the year 2008.
Suing middle income -- will cost its hands nearly a quarter of a million dollars.
Before reaching -- foraging college who into the US Department of Agriculture itself.
All the money gonna -- Well for the next hour we're gonna talk about kids and money will be talking about with.
Two of the most recognizable names of childhood the president of scholastic.
Come on Clifford the big red and -- and a CEO of Sesame Street.
-- Will be here -- to be talking about marketing to kids in the importance of teaching kids about money.
We -- with Jeff Klein felt a senior equity strategist at Piper Jaffray which recently released its.
Taking stocks with teens survey I think that's talking stocks with scenes.
Is it talking shaky stock with T I find taking my iPad.
They're taking stock with teens and you find out that teens actually are spending more money.
Absolutely -- we we visit with these teens across the country twice a year.
We -- -- find out how much money they're spending or better yet how much they're influencing because it's clearly not all there -- to begin with.
What they're spending -- on how frequently and now we're looking for different changes in behavior -- that can help us.
Help us help investors.
Understand where to put their money.
Jeff how or what have you seen changing here in the last two or three years.
Is it is it kids knowledge of how to spend money what to spend money on being more frugal would be seen.
There -- a number of things that changes you can imagine it's a very dynamic marketplace.
It is the probably most obvious is that teens are.
Are very interested in their communication devices cell phone technology has.
Become a 100% penetrated the teen population very very important priority and that technology very very important it's it's what's become sort of their lifestyle.
Wardrobe is more than what they're wearing today it's what they're carrying around and other communicating with each other begin to the Internet and all of the different social networking sites.
Information is traveling faster than it ever has before.
They're talking to each other more than they ever have before so it's really critical for all these brands and products to figure out how to effectively market to them.
Jeff -- you talk about the communication devices like this cell phones and their iPods to music devices and media devices are they less price sensitive.
Is it more important to -- to have the product as opposed to having something similar to it at a good price.
It it it is at certain times of the product cycle no doubt it's a very important question a very good one and it's critical to understand.
Each different product category where that category is -- what we call product innovation cycle for example a few years ago cell technology was coming out.
Fast and furious with new features constantly first it was the cell -- and I was texting.
That was a camera.
Now they're integrating more features like listening to music and integrating MP threes and cell phones together into one device so.
It's really about how fast product is updating as teens are absolutely gonna want to have the latest technology.
That has slowed a little bit here recently and what that means that some of those dollars they've been spending on new devices are gonna shift over and other product categories and that's what we're watching really closely.
To look for investment opportunity.
It just fine and well and as a parent I have to ask where the money to buy all this stuff.
I mean it wouldn't you know we talk about it -- budget is that there allowance do they have jobs.
How are they spending all this.
Was a parent you could probably appreciate that a lot of it's coming right out of your own wallets for you know a lot of it's coming from parents you might not realize -- -- might be subtle but it's definitely coming out of your budget.
You know it depends on what -- come all the these teens are are are are -- in terms of their households the -- and demographic tends to rely more heavily -- parents parents have more disposable income.
Then come to give them when you get down the lower -- demographic more and more of it has to come directly from their part time jobs.
Clearly the last couple years have been challenging it's been challenging because employment is more difficult for these teens.
It's also been challenging because obviously their parents are under pressure but you know we we when we measure this in our survey we come up with about.
Fifty to 60% of their disposable income about fifty to sixty -- average is coming directly from their parents or relatives or you know other adult influences in their life.
Jeff obviously fashion is very fickle and -- that you know the people's tastes are very fickle but it seems like.
A lot of these retail names.
Are very up and down there in this recession I mean you get Israel puts out flying and every single time they -- the same store sales are evident.
Last time around very disappointing.
It is -- is it tough to read -- which ones are going to be successful month after month court.
Well short term volatility is unavoidable we're gonna have these monthly.
Variations in in sales and -- you're actually right -- -- sells high flyer they come up with one lighter.
Sales performance in one month in the stock gets hit.
Pretty aggressively but.
It's important for us to do this survey for that very reason teens are fickle perhaps in terms of what they like it dislike but there's not as much fickle this in.
The cycles you might think the last couple years have been great for aero because it's been a value cycle there hasn't been any newness in terms of product innovation so you can apply to product innovation.
Theory to cellphones MP3 players and apparel a life in addition a lot of other product categories we're getting ready to go into a new.
Fashion cycle we think for a number reasons there's a few more dollars freed up from other categories it's been three and a half years since teens that spent meaningfully.
On their wardrobes and there are a few new items coming out of the market place so we think it's a very good time to have exposure.
To these companies.
-- -- that's why you're survey showed that teen spending is actually up 7%.
Is it because of the Avant semi hands for so long I mean same story would most adults.
That we've been waiting around even -- saving -- money -- it's gonna get out there as well.
-- it's always a confluence of events -- other that there is culturally a lot of things have to happen.
And a line in order to make it a positive cycle.
Positive fashion cycle so the economy has stabilize somewhat -- still under a lot of pressure but it's starting to get let's say less bad.
We're cycling against very easy comparisons are very negative spending numbers from last year.
It's been like I said about three years since people have really focus -- on their wardrobes and at some point you have to -- replenishing a little bit.
All that's starting to -- to make it a slightly better environments.
We think it could lead to multiple years of expansion.
I thank you Jeff Klein felt -- senior equity strategist Piper Jaffray.
Thank you very much thank you.
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