Main takeaways

🍔 Kids’ top spending categories include fast food, digital goods, and savings, reflecting a mix of convenience, entertainment, and financial awareness.

🎁 A significant number of kids choose to donate or save unexpected money, showing strong values of generosity.

⏰ Most spending happens between 12 PM and 3 PM, aligning with school schedules.

At Modak, we’re committed to helping families teach kids and teens about money management through real-life experiences. Our 2024 Modak Community Spending Report reveals fascinating trends about how kids and teens manage their money and what they prioritize when making purchases. Based on thousands of transactions across our platform, we’ve analyzed where, when, and how Modak kids are spending their money—and uncovered some surprising insights!

This analysis was conducted on January 10, 2025, using our internal data tools to extract and evaluate transaction trends, ensuring accurate and up-to-date insights into youth spending behaviors

2024 spending highlights

From after-school snacks to savvy savings strategies, Modak kids are actively engaging in financial decisions. Here's what stood out in 2024:

Fast food rules the day: The top spending category for Modak kids was fast food, accounting for more than 41,000 transactions.
Digital goods are growing: Digital goods ranked as the second most popular spending category, indicating kids' preference for online experiences.
Savings habits are strong: Many kids are using their Modak accounts¹ to save a portion of their funds, highlighting the growing awareness of financial responsibility.
Afternoon spending peaks: Most transactions occur between 12 pm and 3 pm, reflecting spending habits around school schedules.
California leads in transactions: Kids in California are the most active spenders, with over 64,000 transactions recorded.

How would Modak kids spend $10?

In December 2024, we conducted a survey asking Modak kids what they would do if they found $10 on the ground. Their responses revealed a wide range of spending preferences and charitable intentions. Here's a snapshot of what we learned:

27% would donate the money to charity or help someone in need.
23% would save the money in their Modak account.
20% would spend it on snacks, treats, or fast food.
10% would use it for gifts or surprises for friends or family.
7% would invest the money in stocks or other financial tools.
13% had unique ideas, including buying school supplies, gas, or pet treats.

Below is a visual representation of how Modak kids would allocate their unexpected $10:

This data shows that kids are not only thinking about immediate gratification but also about long-term impact and community support.

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Spending by merchant type: Fast food and digital goods dominate

The top two merchant categories where kids spend their money are fast food restaurants and digital goods:

Fast food restaurants: With over 41,000 transactions, fast food continues to be a go-to choice for kids.
Digital goods: More than 38,000 transactions were made for digital goods, reflecting the popularity of games, subscriptions, and online services.
Grocery stores: Kids are also spending on essentials, with over 23,000 transactions at grocery stores.
Service stations: Nearly 19,000 transactions were made at gas stations, likely by teens helping their families or filling up their own vehicles.
Restaurants and cafés: Dining out remains popular, with 16,000 transactions recorded.

These spending habits show a balance between entertainment and practical needs, with kids making independent financial choices.

Transaction trends by state: California tops the list

When we analyzed transactions by state, some clear leaders emerged:

California kids and teens are by far the most active spenders in the Modak community, making nearly three times more transactions than the next highest state. Washington, Florida, New York, and Texas round out the top five.

Interestingly, smaller states like Vermont and North Dakota recorded fewer than 150 transactions each, highlighting regional differences in Modak usage.

When do Modak kids spend the most?

Analyzing transactions by the hour provided some interesting insights into when kids are most likely to spend:

Peak spending hours: The majority of transactions occur between 12 pm and 3 pm (local time based on users' locations), aligning with lunchtime and after-school activities. This analysis reflects an overall time frame based on transaction patterns across all Modak users. There is a noticeable drop in spending after 6 pm, indicating that kids and teens are less likely to make purchases during evening hours.

Top spending categories: A closer look

Let’s break down the top three categories where Modak kids spent their money in 2024:

1. Fast food restaurants

Number of transactions: 41,486
Popular chains: Burger stores and Mexican food.

Fast food remains a top choice for quick meals and treats, reflecting both convenience and the influence of friends and social outings.

2. Digital goods

Number of transactions: 38,590
Popular purchases: Game subscriptions, in-app purchases, music services

Digital goods are a significant part of kids’ spending, especially as online gaming and entertainment continue to grow in popularity.

3. Grocery stores

Number of transactions: 23,046
Popular items: Snacks, drinks, personal care products.

Kids are also contributing to household shopping or purchasing snacks for themselves.

What motivates Modak kids to spend?

Based on our data, kids are motivated by a mix of practical needs, social interactions, and charitable intentions. Here’s a look at some key motivations:

Supporting others: Many kids choose to donate their found money or buy gifts for others.
Savings: A significant number of kids are prioritizing savings, reflecting an understanding of delayed gratification.
Entertainment: Spending on fast food and digital goods highlights the importance of entertainment and social experiences.

The future of kids’ spending

The 2024 Modak Community Spending Report shows that kids and teens are actively engaging with money in meaningful ways. Whether they’re saving for the future, treating themselves, or supporting their communities, Modak kids are making thoughtful financial decisions that will serve them well into adulthood.

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As Modak continues to grow, we look forward to seeing how our young users evolve in their financial journeys. Stay tuned for more insights in next year’s report!

1. Modak is a financial technology company and not a FDIC-insured bank.Checking account and the Modak Visa® debit card issued by Lewis & Clark Bank, Member FDIC.

2024 Modak community spending report: Kids financial habits