Hey there! It's Talk About Money Tuesday, your favorite day of the week! 🤑
Consumers these days are left to face a stark truth: Relief from the rising cost of food, housing, utilities, transportation, and healthcare doesn't appear to be in sight. This data point about car loans speaks to just one way the cost of living is squeezing many Americans...
Money Stat
84
That's how many months some cash-strapped car buyers are financing their new vehicles to lower their monthly loan payments. According to a recent report from Edmunds, the automotive website, nearly one in four new car buyers took out an 84-month loan in the second quarter of 2025. Lengthening auto loan terms is one of the few ways to shrink car loan payments, but it makes the total cost of a car much higher, thanks to interest. It also increases the risk of borrowers owing more money on the car than it's worth, known as negative equity or being "underwater." However, as car prices continue to outpace wages, the share of people opting for seven-year loans — which has nearly doubled from six years ago, Edmunds reported — is expected to rise.
Money in the News
The news: Amazon and the Federal Trade Commission are locked in a legal battle in a federal trial now underway in a Seattle courtroom. The FTC has accused the company of tricking people into signing up for Prime memberships and then making it too hard for them to cancel.
What it means for young people: This case raises the issue of how companies may design websites to keep them spending, even if they don't want to. A key skill for them to learn as online shoppers is how to spot "dark patterns," such as hidden cancel buttons or confusing menus that push them to make decisions they might not have made otherwise.
Tip for parents & mentors: If your child or teen has subscriptions for games or streaming services, sit down together and show them how to cancel one of them. Even if it's just a trial subscription, this will give them hands-on experience when it comes to recognizing confusing options. Also, teach them how to read the fine print with an eye for critical details like free-trial expiration dates, auto-renew clauses, or cancellation fees.
Get in the Zone
Money skill: How to research prices before making purchases
Why it matters: Teaching kids and teens to research prices trains them to think critically before spending, which can keep impulse buying at bay. It also helps them understand that not every deal is a good one. The cheapest option may be more expensive in the long run, and a high price doesn't always equal good quality.
Try this: Use real-life examples to get the message across to youth ages 6 to 10. Look up the price of a toy online together and then do a search to find the same toy at different stores so they can see how prices can vary.
Urge preteens and teens in shopping mode to comparison shop online first, check reviews, and look for a promo code. It also helps to discuss the total cost of an item with them. Young people often just focus on price, without factoring in shipping fees, taxes, costly return policies, or differences in quality — all of which can hike up total cost.
When your child finds a better deal, share their pride in that! Every time their price research pays off, it builds their financial confidence.
Money Talks
Here's an easy way to talk to young people, with visuals, about where the money goes in your household:
☑️ Use Monopoly money to count out your monthly take-home pay in front of them. Explain that this is how much money you have to spend after taxes, and let them feel how "big" the stack of money is.
☑️ Have your child help you make a list of your monthly household expenses.
☑️ Start subtracting those expenses from the Monopoly money. For example, let them count out your rent or mortgage payment and set that aside. Move through the entire list, counting out and setting aside the amount of each expense. Soon they'll see that most of the money in the original stack is gone.
☑️ Ask them what they notice about the amount of money left. Maybe it's much less than they thought it would be, which gives you a perfect opening to talk about why budgeting and prioritizing wants vs. needs is important.
Jargon-free financial literacy workshops for kids, teens, and college students are my speciality. Is your school, college, nonprofit organization, or community group looking for someone to make money matters simple for the students you serve? Get in touch with me here.
Loose Change
💻 Taking online surveys is a way to make extra cash in your spare time, but this easily-accessible side hustle might not be worth it and could put your personal data at risk.
📱 The cost of Apple's new iPhone 17 Pro Max with 2TB of storage makes the days when a $1,000 iPhone sparked pearl-clutching seem quaint.
🎃 Halloween candy's going to cost more this year, yet Halloween spending is expected to reach a record high.
Thanks for reading! Have youth financial literacy questions or money success stories that feature kids, teens, or college students? Reply to this email and ask (or share) away.
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'Til next time,
Audrey
Founder and Certified Financial Education Instructor
The FinLit Zone
600 1st Ave, Ste 330 PMB 92768, Seattle, WA 98104-2246
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