Monday, January 30, 2012

Toys Sales and the Recession

8:36 AM  , , ,  19 comments

By Photos8.org
Recession.  Foreclosure.  Bankrupty.  Debt.  The past few years have been full of stories about the harsh realities of the economy.  I read post after post each week from folks who are budgeting everyday to reduce their debt and improve their economic status.  Imagine my surprise last week when I ran across an article by Jason at Frugal Dad.com in which he shares statistics about the toy industry in the United States.  It seems that the toy sales in the US have risen during the recession.

Take a look at this graphic image below that Jason put together.  Some of the stats are amazing.  The most intriguing to me are:
  • Less than 4% of the world's children live in the United States but we buy more than 40% of the toys.
  • The amount of money spent per child on toys in the United States is $280 per year.
  • Toy sales have increased by 2% during the recession while the amount spent in supermarkets has decreased by .5%.

During a time when many of us are examining our budgets and reigning in extra spending, we need to take a hard look at what we are spending on toys and decide if that area can be trimmed a bit.  Kids learn so much from our behaviors and actions.  It can definitely send mixed messages to them if we are cutting coupons and  saving gas, but at the same time, we are willing to buy them the latest, greatest toy.  Perhaps we can let our kids save their own money and buy their own toys (outside of birthdays and holidays, of course!).  What do you think?

toys
Source: frugaldad.com

19 comments:

  1. Tim @ Faith and FinanceJanuary 30, 2012 at 3:02 PM

    Wow, that's incredible! I'm shocked by the fact that American children represent 4% of total children in the world, yet we buy 40% of the toys. We live in a very materialistic time.

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    Replies
    1. Pam at MoneyTrailJanuary 30, 2012 at 5:46 PM

      It's crazy, isn't it? And we wonder why many kids develop a sense of entitlement...

      Delete
  2. SquirrelersJanuary 30, 2012 at 4:39 PM

    4% of total kids, yet 40% of toy purchases...wow that's an eye opening stat. Many people get emotional and want to make their kids happy - I know, I can be one of those people - but the bigger issue is what are they learning about instant gratification in the process?

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    Replies
    1. Pam at MoneyTrailJanuary 30, 2012 at 5:49 PM

      I am a mom of 4 and I definitely understand the enjoyment of seeing your kid get excited. It's often a balancing act between teaching them lifelong skills and also enjoying the moment we are in. There is merit to both; however, delayed gratification is a skill that isn't practiced as much as it could be.

      Delete
  3. My University MoneyJanuary 30, 2012 at 10:50 PM

    Do kids really need all these toys anyway? I know as a kid I could've done with a hockey stick, a tennis ball, a football and a basketball. That's it. Today's youth need to get outside and play more anyway, and that activity usually doesn't require a whole lot of investment!

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    Replies
    1. Pam at MoneyTrailFebruary 2, 2012 at 4:49 PM

      My two youngest boys spent 2 days digging a big, huge hole in the backyard a few summers ago. They were looking for treasure! It was wonderfully, fine entertainment until Dad made them fill it back in. The hole was behind his basketball goal and he was worried he would break his leg.

      Sticks, dirt and balls can be wonderful toys!

      Delete
  4. Passive Income to RetireJanuary 31, 2012 at 8:11 AM

    I can't believe sales went up during the recession. Comfort toy? I think so..

    ReplyDelete
  5. Jen @ Master the Art of SavingJanuary 31, 2012 at 6:25 PM

    I can't believe that we spend so much money on toys, it's crazy.

    ReplyDelete
  6. YFSFebruary 1, 2012 at 11:30 AM

    America is were the buyers are that's why we hold such a high position in the world. You have to deal with us or your country will suffer economically. I'm not surprised that we are #1 in toys buying. Despite being in economic turmoil a family will do anything to make their child smile.

    ReplyDelete
  7. neo @networthprotectFebruary 1, 2012 at 9:26 PM

    We are toy and gadget crazy here in America... I know that I won't buy myself a new suit for work, but I will buy my two nieces $300 worth of toys at Christmas even though they are both only 1-year old. These toys will get played with an hour or to at best given a toddler's ultra short attention span. It is nuts to spend that kind of money, but I still do it and it looks like everybody else does too...

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    Replies
    1. Pam at MoneyTrailFebruary 2, 2012 at 4:46 PM

      As YFS said in the above comment, we'll do anything to make the kids smile!

      Delete
    2. maria@moneyprincipleFebruary 4, 2012 at 5:39 AM

      Do you think we may be buying our children off? I have noticed that the more busy we are, the more toys we buy. As to making our kids smile, playing with the and being silly together makes them giggle with pure joy! Well, until they get to puberty anyway...

      Delete
  8. maria@moneyprincipleFebruary 2, 2012 at 4:07 PM

    Our children have romms full of toys - it is not only the US; this is true for most afluent societies. But I remember when my son was six years old he got so much stuff fo Christmas that it was offensive (not from us but friends and family). What did he play with? A really nice large box! This is my boy!

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    Replies
    1. Pam at MoneyTrailFebruary 2, 2012 at 4:45 PM

      Oh my goodness, my kids used to love to play in boxes. The bigger, the better!

      Delete
  9. Marie at FamilyMoneyValuesFebruary 3, 2012 at 10:16 AM

    Maybe its the 'Grandparent effect'!

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    1. Pam at MoneyTrailFebruary 3, 2012 at 10:18 AM

      LOL! I hadn't thought of that, but based upon my mother, it could definitely come into play. (Mom, if you are reading this, you know I love you!)

      Delete
  10. toys for kidsFebruary 7, 2012 at 8:10 AM

    Hey buddy I am shock to read this out that toy sales have increased by 2% during the recession while the amount spent in supermarkets has decreased by .5% amazing and great post.

    ReplyDelete
  11. musical toysJanuary 11, 2013 at 6:19 AM

    This comment has been removed by a blog administrator.

    ReplyDelete

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