Gen Z, Toys and the Cost of Parenting
Friday 27 November 2009
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Generation Z, Toys, and the Cost of Parenting
In the busiest toy shopping period of the year Social Researcher Mark McCrindle reveals
the latest research on Generation Z and their toys, the top 5 toy spending trends of their
Generation X parents, and the financial cost of raising the average 2.7 children. This research
is published in-depth in Mark’s new book: The ABC of XYZ-
Understanding the Global
How many toys?
The average Australian household with dependents has in excess of 100 toys.
How much do parents spend?
96% of Australian parents spend more than $100 on toys per child, per year. 25% of
parents have an annual toy spend per child which exceeds $500.
“Today’s parents are starting their families six years later than their parents did
(median age of first time mother is currently 30.7 years), they are having one less child
than their parents generation (currently 1.9 babies per woman), and they most often
have a two-income household. The result is that parents have more money per child,
and spend more per child than their parents did. Generation Z (born since 1995) are the
most financially endowed generation of children ever” writes Mark McCrindle.
What kinds of toys do Australian children own?
Electronic vs. free-play: Children’s toys are a sign of the technological times. Just
over half of Australian children’s toys are powered/electronic.
Toys that aren’t toys: The largest “toy” spend on children aged over 8 is allocated
to toys that aren’t toys. The biggest category is consumer electronics (iPods, digital
cameras, mobile phones, computers and peripherals) followed by electronic game
technology (X box consoles etc, portable game consoles).
Educational toys: When selecting a toy for their child, Australian parents like to buy
toys with a stated educational benefit. Half of Australian kids have an even mix of
educational and non-educational toys, while just over one-third have more
educational than non-educational toys.
“In addition to being the most materially supplied generation ever, Generation Z are
also the most formally educated generation- they are starting formal education earlier
than ever, and 90% of them will complete Year 12, with most going on to further study.
Free play is out, structured activities are in- and for the Gen X hyper parents, toys have
given way to learning tools” found Social Researcher Mark McCrindle.
Gen Z, Toys and the Cost of Parenting
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Older younger: today’s generation of “upagers”:
Today’s girls stop playing with dolls
at a younger age than their mothers did. The
average age for young girls to stop playing with dolls is now age 6; for their mothers,
it was at age 10.
“The 21st
Century has ushered in a new lifestage: the tweens. Such is the growing
sophistication, marketing influence and upageing that these pre-teens are fashion
aware, brand conscious and peer influenced as much as yesterday’s teenagers. While
this stage between childhood and teenagehood originally defined those aged 8 to 12, it
increasingly refers to the 7 to 11’s with some commentators redefining the tweens as
the 6 to 10’s” comments Mark McCrindle.
Giving up childish things:
How many?
A third of Australian parents get rid of between 5 and 10 toys per child
every year. 19% get rid of over 15 toys per child per year.
Why? 2 in 3 toys are let go of because they are no longer played with. Only 1 in 5
are discarded because they are warn or broken.
Where do they go? The top 3 places unwanted toys go to are:
1. Charity (44% of toys or 13 toys a year per household with dependents)
2. Friends (28% of toys or 8 toys a year per household with dependents)
3. Garbage (16.5% of toys or 5 toys a year per household with dependents)
“Parents feel swamped by their busy lives and undermined by advertising and
entertainment
that targets their children and was at odds with their values” states
researcher Mark McCrindle. “Regarding children under 12 the biggest concern
Australian parents have after bullying and negative peer pressure is the influence of
advertising and media on their children. In fact one third of all parents surveyed stated
that their biggest challenge was counteracting the negative influences of television
and other media consumption.”
The Pushback: Trends for Christmas 2009:
With technology at saturation point, sedentary lifestyles for children on the rise, and
more wasted and discarded toys, parents’ Christmas shopping behaviour is
changing.
Christmas shopping patterns this year have revealed:
Gen Z, Toys and the Cost of Parenting
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Trend 1: Go out and play. An increase in outdoor toys, free-play (non-powered)
toys and sporting equipment. From trampolines, skateboards and bikes to water
pistols, swing sets and Frisbees.
Trend 2: Nostalgia returns. First observed with scooters returning a decade ago,
now wooden train sets, pogo sticks, marbles and collectables, gender specific toys
(toolkits for boys, makeup kits for girls), and cute dolls and princess dressups (rather
than the edgy tween dolls of the last few years) are making a return.
Trend 3: Experiences, not just accumulations. Parents are increasingly taking
children on trips, attending events and buying experiences that can be shared and
which build relationships rather than just more things. For many families today who
“have it all” it is about maximising what they have rather than accumulating more.
Particularly after the global financial crisis and in this era of environmental
sustainability, parents are enriching the journey rather than buying more “stuff”.
Trend 4: Values-based and educationally focussed. The Gen Xer parent is
increasingly looking to maximise their toy spend by ensuring their children gain a
long term benefit. Toys with a stated educational function, or toys which enhance a
skill or develop values top the list. Books, educational technologies and computer
products are in, as simplistic entertainment options are resisted.
Trend 5: Upageing. Consumer electronics such as iPods
and digital cameras,
designed for adults are now on the shopping list for the tweens. As the sophistication
and technological literacy of children increases, parents are shifting their spend from
childhood toys to the technology “necessities” of today. Today’s “toy” shopping is as
likely to take place at Harvey Norman as Toys ‘r Us.
Parenting in the 21st Century: the $1,000,000 role
The Federal Government’s Child Support Agency (www.csa.gov.au) has tables which
outline the care costs of raising children and to raise 2 children to 18 based on an
average household income will cost $384,543. However this figure does not include
private education, holiday or other “non-essential” items.
In 2007 NATSEM calculated the cost of raising 2 children to age 21 including the
education, travel, and real-life expenses was $537,000 (www.canberra.edu.au).
However, even this estimate that raising children today will be $537,000 is an
underestimation for the following reasons: first, the average number of children per
household that has children is 2.7. Therefore based on $537,000 for children, the
average parental expense to raise their (2.7) children is $724,950. Second, the figure
assumes that by 21 the
children will be independent. Yet in today’s Australian
families the majority of young people stay in the parental home and rely on their
parents for some of their expenses until their mid 20’s. Therefore the cost per
Gen Z, Toys and the Cost of Parenting
Friday 27 November 2009
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household to raise children to age 24 is $834,000. Further, when the additional, non-
essential yet “usual” child rearing expenses are added (toys, holidays and travel,
dining and entertainment, private tutoring and education, sport and activities,
furniture and household equipment dedicated to the children’s use etc) the cost
increases by additional $3000 per child per year. This takes the total parental cost to
raise the average number of children in Australia to $1,028,093.
Rising costs of parenting
Here is a breakdown of the costs which total $1,028,000 to raise the average family
(2.7 kids) to independence (24) today per category:
$206,000
Food
$165,000
Housing & utilities
$157,000
Recreation & entertainment
$153,000
Health & other services
$129,000
Clothing & equipment
$123,000
Transport
$95,000
Education & child care
Note: the costs (e.g. housing) are not the total household costs but only the amount apportioned to the children.
Source:
McCrindle Research.
Research method:
National survey and focus groups conducted by McCrindle
Research. It was not funded or sponsored by any organisation.
The survey respondents were drawn from McCrindle Research’s
proprietary research panel AustraliaSpeaks.com which is a
national, representative, and research-only panel of 4500
Australians.
For full reports on these trends, go to:
For comment or analysis: Mark McCrindle
P: 02 8824 3422
M: 0411 5000 90
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