Teens are spending more, according to the latest Taking Stock With Teens® survey just released by investment bank Piper Sandler. The biannual survey explores how teens spend their money. Teens’ annual spending was $2,388, up 6% year-over-year and 1% from the fall 2024 teen survey, according to the spring 2025 report, which surveyed over 6,455 teenagers.
Teens spend most of their money on food (21%), followed by clothing (19%) and video games (9%). Upper-income teenagers spent more on food (23%) and clothing (22%).
Beauty
Teen spending on beauty products and services (which has been on the rise) reached its highest level ever—at $374. The top brand—e.l.f. Cosmetics. The top stores where teens shop for beauty products are Sephora (#1), Ulta (#2), and Bath & Body Works (#3), the first time the chain has ranked in the top 10 since 2018.
Social Media
Despite the TikTok buzz, Instagram remains their most used social media app, with 87% of teens using the platform. TikTok was second, at 79%, and Snapchat came in third, at 72%.
Restaurants and Food
Not surprisingly, fast food is the way to teens’ wallet, with Chick-fil-A leading the pack, followed by McDonald’s and Chipotle Mexican Grill. In the coffee category, Starbucks led the way (51%), with Dunkin’ (10%) and McDonald’s and Dutch Bros tied for third (5%).
Small business owners may look at this report and think, “Who cares? I can’t compete with these big guys.” But Nation’s Restaurant News (NRN)added some perspective about this category, reporting that both Starbucks and Dunkin’ lost some share, which was gained by 7 Brew, a much smaller coffee chain. 7 Brew debuted in the top 5 in this report—and the chain is only 8 years old. They only had a 4% share—but that’s only 1% less than McDonald’s, which is decades older and thousands of outlets larger.
NRN also noted, “Teenagers are among [restaurant operators’] most coveted targets, as they collectively spend about $63 billion annually, with most of that spending going toward food.
Clothing and Footwear
For clothes, Nike continues to be the top teen clothing brand, followed by Hollister and American Eagle. In footwear for upper-income girls, Lululemon has lost the top spot, which it has held since the spring 2018 survey, to UGG.
And when they shop online, those upper-income teens mostly buy from Amazon.
Some key details:
- In the beauty category, all categories grew, led by fragrances, which saw 22% growth year over year. Haircare sales were flat.
- While Nike was the top footwear brand for all teens, its market share has declined to 49% from 60% three years ago.
- Most teens reach for Lays potato chips when snacking, followed by Goldfish and Doritos.
- Teens needing energy turn to energy drinks (45%) over coffee (28%) and soda (26%).
- But teens’ favorite beverage is soda. Their favorite beverage brands are Dr Pepper (10%), Coca-Cola (9%), and Gatorade (7%).
- If you own a restaurant and want to sell to teens, their favorite delivery service is DoorDash (73%).
While teens did spend more this spring, they’re less optimistic—59% think the economy will get worse, and only 19% believe it will improve.
Rieva Lesonsky is President of Small Business Currents, LLC, a content company focusing on small businesses and entrepreneurship. While you can still find her on Twitter @Rieva, you can also reach her @Rieva.bsky.social and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.
Infographic courtesy Piper Sandler