Teen Spending on the Rise

Dec. 12 -- Designer fashions are not just for celebrities and the red carpet — they're finding their way into classrooms and hallways as teenage girls seek out glamorous trends.

Watch John Stossel's full report Friday on 20/20

Adolescents have always had a thing for fashion, but now they're spending serious cash on clothing, jewelry and handbags from the "right" designers. These young ladies are interested in products from Tiffany, Coach, and Armani Exchange.

"Logos are everything," said Suzanne Zarilli, owner of Wishlist in Westport, Conn. "I get phone calls [asking] what came in this week."

The teens say designer labels contribute to their social ranking. "There's almost like this … boundary that you don't want to cross … because then you'll just be like, weird," Melanie Burg, a 13-year-old from suburban New York, said during a panel discussion 20/20 held with several teens and their moms.

One teen, Cheryse Pickens, explained the merits of a $200 bag which she called a "magic bag" for its mix of style and convenience.

"You have everything you need in there," said the 17-year-old from New Jersey. "I mean you don't need a huge bag. You just need the cute little … you know, don't overstuff it."

When asked why a less expensive bag, of the same size, would not do the job, she replied, "No, it's not the same."

Financing the Fashion

These mall-trotting teens carry credit cards, some using prepaid plastic that functions like a debit account. Last year young shoppers spent over $170 billion — double the amount just 10 years earlier. Many work for their money; others get it from parents. For parents on a budget, these fashion aspirations are a challenge.

"She sort of expects to just get [what she wants]. Get me and give me," said Ellen Burg, a fitness instructor who can't afford to satisfy all of her daughter Melanie's fashion indulgences. However, Melanie argues that she's not that demanding.