Hey there! It's Talk About Money Tuesday, your favorite day of the week! 🤑
Well, clearly I'm not one of the Powerball winners. So let's just jump right into this data point about impulse buying, which is something lottery winners know all about...
Money Stat
50%
Grocery stores go out of their way to trigger impulse buying by offering free food samples and stocking tempting snacks in the checkout lane. It's no wonder that 50% of shoppers impulse buy while getting groceries, according to recent data from Capital One Shopping. What's the most common impulse buy? Clothing. Fifty-five percent of consumers reported buying clothes on a whim.
Since kids and teens love spending money on food and clothing, learning how to resist impulse buying is a smart money habit that parents and mentors can help them learn. For younger kids, try the "wait a day" rule. It gives them 24 hours to decide if they really want to buy. Meanwhile, asking teens with jobs how long they'd have to work to pay for an item can make the cost of an impulse buy feel more real.
This tactic definitely worked on me back in the day. I skipped buying a pair of Jordache jeans that just weren't worth the hours I had to put in as a cashier to buy them.
Money in the News
The news: Fast-food prices have surged in recent years which makes the cost of a quick meal a personal inflation indicator that fast-food lovers can't ignore. "McDonald’s, for example, is supposed to be an inexpensive treat or a cheap fast-food fix. It is now a relatively expensive purchase, especially for a family," Neil Saunders, a retail analyst at the research and analytics firm GlobalData, told USA TODAY. "Many don’t think it’s worth the money, so they cut back on dining there." To lure back cost-conscious customers, some fast-food restaurants have decided to cut prices.
What it means for young people: With so many fast-food spots pushing meal deals, it's crucial for young consumers to look past the marketing. These deals may seem like the best way to save money in the moment but they can actually lead to more frequent spending, which adds up quickly. Sometimes a deal isn't a deal.
Tip for parents & mentors: Encourage teens to track how much they spend on fast food in a week and then think about what else that money could be used for — like contributing to a savings or investment goal. This exercise helps them learn how to weigh short-term conveniences against long-term financial goals.
Get in the Zone
Money skill to master: Convenience is costly.
Why it matters: We've all grabbed pre-cut veggies, jarred spaghetti sauce, or a ready-made meal from the grocery store to save time. But let's face it, all of these meal prep hacks are grocery budget busters. Sometimes convenience foods are necessary, but it's important for young people to understand the cost of having "extra help" in the kitchen.
Try this: Take young shoppers to the grocery store with you and compare the price of pre-cut or prepared foods with whole ingredients. For example, at one store in my area a whole pineapple is about $4. However, a container of pre-cut pineapple chunks costs nearly double that. You could also use your own convenience food choices to show how you balanced saving time with spending wisely.
Smart Money Quiz
A recent survey on grocery shopping, conducted by LendingTree, revealed that 88% of American have changed their shopping habits to lower their grocery bills. Which of these was their most common cost-cutting move?
A. Sticking to a shopping list
B. Using coupons more often
C. Buying more generic brands
D. Being more mindful of food waste
(Jump to the end of this newsletter if you can't wait to see the answer).
Loose Change
🧇 Got a 3 a.m. Waffle House craving? No problem. The Georgia-based chain now offers all night delivery.
🏪 Japan's convenience stores are so fancy that they're tourist hot spots.
🍳 If you're looking to let the young chefs in your house make a mess try their hand in the kitchen, National Kids Take Over the Kitchen Day is coming soon. Remember, cooking at home saves money. 🙃
Thanks for reading! Have questions or money success stories about youth? Reply to this email and ask (or share) away.
If this newsletter was forwarded to you, please subscribe here.
'Til next time,
Audrey
Founder/Certified Financial Education Instructor
The FinLit Zone
ANSWER
C. Buying more generic brands. Forty-four percent of shoppers trying to cut their grocery costs shed their loyalty to national brands and turned to purchasing private-label products instead. Apparently, most consumers can't tell the difference between the two.
600 1st Ave, Ste 330 PMB 92768, Seattle, WA 98104-2246
Unsubscribe · Preferences
