Hey there! It's Talk About Money Tuesday, my favorite day of the week!π€
Let's talk about one of the most powerful words in marketing: FREE!
Young people are growing up in an economy where free can be pretty complicated. A free app collects personal data. A free trial may become a paid subscription. Or a free delivery offer comes with service fees.
That's why it's so important for young people to learn to ask what "free" really means and look for the exchange behind the offer. That's a critical part of becoming a savvy consumer.
Parents and mentors, you can help kids develop this habit early. Instead of simply warning them that companies are trying to trick them, ask them to investigate an offer like a detective.
That will help them build a healthy skepticism they can use to make informed choices, rather than assuming every free offer is a bad deal.
Money Stat
69%
A free trial can feel like a no-risk decision, but new research suggests that's not quite the case. A May 2025 survey of 1,000 consumers by BestMoney found that 69% were charged for a subscription they forgot to cancel.
The survey also revealed that 59% were paying for subscriptions they didn't actually use.
In fact, staying on top of subscription renewals can be a real challenge for some consumers. According to the survey, one in five people are juggling six or more subscriptions.
Money in the News
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The news: Instacart reached a $60 million settlement with the Federal Trade Commission late last year, after allegations involving "free" delivery claims and automatic enrollment in paid Instacart+ memberships following a free trial.
What it means for young people: This story illustrates how a purchase can have a price that is easy to overlook when the offer emphasizes what you supposedly get for free.
Young people encounter the same tactics in apps, games, streaming, shopping, and more. As they learn to examine the entire transaction, the key question for them should be: "What am I agreeing to after I click yes?"
Tips for parents & mentors: The next time your child sees a "free trial," ask them to predict what the company hopes they will do next. Then help them find the regular price, renewal date, and how to cancel before they sign up.
Use an offer you encounter together as a five-minute investigation. Have young people look for:
1οΈβ£ What happens after the free period?
2οΈβ£ The recurring price and the extra fees
3οΈβ£ The cancellation deadline
4οΈβ£ Whether payment information is required
5οΈβ£ What they're giving up in exchange for the service
At the end of the day, being able to spot a sneaky fee is a useful skill. But knowing enough to make informed choices before they commit is what helps young people stay in control of their money and their choices.
Get in the Zone
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Money skill: How to read the "real price"
Why it matters: A financially savvy consumer learns to skip over the headline to evaluate the whole deal. This skill transfers to subscriptions, banking products, phone plans, games, credit offers, and other financial decisions.
Try this: Learning to identify the total commitment means slowing down before saying yes (or no).
β‘οΈ Make "show me the price" a family phrase. When your child shows you something advertised as free, ask them to search to find the real price.
β‘οΈ If they start a free trail, have them put the cancellation date in their calendar immediately. Explain that remember the deadline is part of the cost of accepting the offer.
They can also cancel a free trial as soon as it begins. That's what I do!
Smart Money Quiz
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A teenager downloads a free app. Which statement is the most accurate?
A. The app has no financial value because they don't pay for it.
B. The app is free, so there is no financial decision involved.
C. The app may earn money from ads, subscriptions, purchases or user data, so they should understand what they're giving up for access.
D. Free apps are always a scam.
(The answer is at the end of this newsletter.)
If you know a school, college, or organization that could benefit from a financial educator who makes learning about money fun for youth and young adults, send them my way.
Iβd love to chat with them about how we could work together.
Loose Change
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π Here are some common ways that free apps can cost you.
π° Some free apps go by a different name: fleeceware.
β½ When scammers promise free gift cards or food or gas vouchers, the real cost is access to your banking info.
Thanks for reading! If you want to read some of my past newsletters, click here. And if this newsletter was forwarded to you, please subscribe βhereβ.
'Til next time,
Audrey
βFounder &
Certified Financial Education Instructorβ
The FinLit Zone
ANSWERβ
βC. The app may earn money from ads, subscriptions, purchases or user data, so they should understand what they're giving up for access.
"Free" describes what the customer pays, but not the full business model. It's a great opportunity to show that value can be exchanged in ways other than money.
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