Hey there! It's Talk About Money Tuesday, my favorite day of the week! 🤑

Kids and teens are awash in ads, and sometimes they don't even know it. Advertising can take the form of an influencer post or be embedded in unboxing videos and in-app purchases.

The marketing messages young people are exposed to do more than promote products. They also shape what they think they need to buy to be accepted or successful.

Let's get into what it takes for youth to outsmart advertising and spend wisely.

Money Stat

$67

It may be hard to see 8- to 14-year olds as having real buying power, but advertisers definitely do. A new report shows that Gen Alpha kids spend an average of $67 a week, or almost $3,500 a year. With the rise of digital marketing, advertising to children has become a multi-million dollar business whose detrimental impact on kids and teens is well-documented. Advertisers know that the earlier they get young people hooked on a brand, the more likely they are to buy that brand later (or beg their parents to do it). In fact, the preteens and teens who make up Gen Alpha are one of the most important demographics for marketers. What makes them so important? They have money to spend, they're still sorting out what brands they like and don't like, and they're experts at influencing what their parents buy.

Money in the News

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The news: The makers of Poppi soda recently agreed to pay $8.9 million to resolve claims that it falsely advertised its sparkling prebiotic drinks as "gut healthy." A lawsuit, filed more than a year ago, alleged that the amount of sugar in Poppi cancels out any benefits from the prebiotics. Poppi admitted no wrongdoing under the terms of the class-action settlement.

What it means for young people: Poppi's award-winning packaging and influencer hype made it a hit with Gen Z, but this case is a reminder that not all "health" claims in ads are real. Sometimes companies use vague buzzwords or jump on wellness trends to sell products that don't actually deliver what they say they do.

Tip for parents & mentors: Teach your child or teen to question bold claims in advertising. Encourage them to ask, "What's the evidence?" and "Who says so?" You can use the moment to talk about how to spot red flags in advertising (more on that below), especially when it targets health or body image.

Helping young people think critically now sets them up to be smart, informed consumers later.

Get in the Zone

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Money skill: How to spot red flags in advertising

Why it matters: The whole point of ads is to influence what we buy, how we see ourselves, and what we value. If young people can recognize when a brand is using emotional tactics or not quite telling the truth, they're less likely to make choices they'll regret about their health, self-image, or money.

Try this: Help your kids understand that influencers often get paid (or get free stuff) to promote products. Remind your kids that just because someone they follow loves a brand doesn't mean it actually works or is good for them.

It also helps to have a discussion with them about the psychology behind the pitch. Ads tap into emotions like FOMO (Fear of Missing Out) or they promise confidence or popularity. For example, an ad might show a teen using a certain cell phone who then attracts a lot of new friends. The message: Buy this, and you'll belong.

To help your child practice spotting ad tactics, watch content together and ask what emotion the ad is trying to trigger when one appears. Have them think through whether the product is solving a real need or just creating one.

Teaching young people to question ads builds the same skills they'll use to budget, compare prices, avoid scams, and think before they spend. Media smarts and money smarts go hand in hand!

Money Talks

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Here are three ways to start a conversation with young people about how ads and financial literacy are connected:

1️⃣ Talk about how ads try to influence what we want vs. what we we need. Ask your child or teen, "Is this something you need, or just something the ad makes look exciting?" This helps build awareness around emotional spending.

2️⃣ Marketers often use urgent language — like "limited stock" or "today only" — to drive quick decisions. Discuss how to pause, reflect, and compare before buying.

3️⃣ Help your child think about what they want to save for. Point out how resisting impulse buys, influenced by ads, can help them reach their savings goal faster.

Loose Change

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🍟 Here are four marketing tricks McDonald's uses to make you spend more.

🍬 Three in four children ages 6 to 8 saw ads promoting unhealthy food and drinks while watching videos on YouTube or YouTube Kids.

🥔 What was the first toy advertised on TV? Here's a hint: It's a vegetable that Americans eat fried, mashed, and loaded.

Thanks for reading! If you know someone who cares about youth financial literacy, share this newsletter with them. And if this newsletter was forwarded to you, please subscribe ​here​.

'Til next time,

Audrey
​Founder &
Certified Financial Education Instructor​
The FinLit Zone

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