What Teens Are Spending Their Money On

A new survey about teenagers' spending habits provided good news for Exxon Mobil(XOM Quote - Cramer on XOM - Stock Picks), but bad news for Abercrombie & Fitch(ANF Quote - Cramer on ANF - Stock Picks): Gasoline has surpassed clothing as teenagers' No. 1 credit-card expense.

A poll of 712 teenagers conducted by Junior Achievement and The Allstate Foundation(ALL Quote - Cramer on ALL - Stock Picks) also found that a larger portion of teens are using credit cards -- 10.4% vs. 8.5% a year ago.

The findings show that the double-barreled blast of high energy costs and credit-card debt has reached teens' piggy banks. But mostly, it has further drained parental pocketbooks, since the study also found that bills are being paid by parents more often than in years past.

"Rising gas prices are impacting teens as much as they are their parents," says Jack Kosakowski, president of Junior Achievement USA. "The question is, are the teens paying off these cards, or are they passing the debt on to their parents?"

In the most recent survey, about 69% of teens said they use credit cards for gas, up from 52% a year earlier and 46% in 2006. Gasoline now tops the list of things teens are charging, above "clothes," which had led the list in previous years.

Joleen Martis is one teen whose style has been crimped by surging fuel costs. She budgets $80 per week for gas to fill up her Honda(HMC Quote - Cramer on HMC - Stock Picks) Pilot SUV.

"It wasn't always that way -- I used to try to shop here and there but since gas prices are high, I don't really shop as much," she says. The 17-year-old Rahway, N.J., native has a part-time job at Best Buy and spends most of her cash on fuel and food, but keeps a side-stash in case of an emergency or necessary shopping spree.

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