Hey there! It's Talk About Money Tuesday, my favorite day of the week! π€
It seems like retailers are rolling out deals for the holidays earlier and earlier, with the first full week of October featuring offerings from Target, Walmart, and Amazon Prime, just to name a few.
At a time when everyday essentials cost more than they used to and the impact of tariffs on holiday shopping looms large, consumers are definitely in bargain mode. The data point below speaks to the hunt for a good buyβ¦
Money Stat
11%
That's the increase in Google searches for "coupon code" and "discount" over the past year, according to consulting firm PricewaterhouseCooper's 2025 Holiday Outlook survey. How serious are people about getting the most bang for their buck? Nearly, 80% of survey respondents said they were seeking less expensive alternatives for gifts on their list this holiday season.
Overall, PwC expects holiday spending to fall by 5%, fueled by frugal Gen Z shoppers. Said Ali Furman, consumer markets industry leader at PwC, in a video conference: "What we're seeing is a generation that's growing up, getting a bit smarter about budgeting, and more intentional about spending."
Don't be surprised if you find yourself on the receiving end of what the survey calls a "quiet, thoughtful gift-adjustment," courtesy of your favorite Gen Zer.
Money in the News
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The news: The $7,500 tax credit that Americans received from the government when they bought electric vehicles is no more, sparking predictions that EV sales will collapse without the incentive.
What it means for young people: Many electric car buyers were counting on the tax credit, which gives you a discount on the amount of tax you owe, to lower the cost of their purchase. But now that the credit has disappeared, EVs typically cost more than they used to.
Some people in the market for an electric car might adjust their budget to accommodate the higher price point, while others may skip buying an EV altogether. This scenario shows why a budget isn't a one-and-done document. It has to be updated regularly because income, prices (expenses), and financial goals can change.
Tip for parents & mentors: If your child is saving up to buy an item that's on sale, discuss what they would do if the price went up before they could purchase it. Would they commit to saving a little longer? Pick a cheaper option? Or wait to buy when the item goes on sale again?
This conversation can help drive home how budgeting isn't just about what your child wants, it's about what they can afford.
Get in the Zone
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Money skill: The difference between fixed and variable expenses
Why it matters: Kids and teens might not know that all expenses aren't the same. Some costs are predictable, or fixed β think car payment, rent or a mortgage. Others β such as clothing, entertainment, or an electric or water bill β are variable, which means the cost is different every month.
Knowing which expenses are non-negotiable and which are flexible teaches young people how to prioritize needs over wants, a key lesson for both youth and adults.
Try this: Make a list of the fixed and variable expenses in your household (don't label them) and let your child tell you which category each expense belongs to. Ask them what variable expenses they could lower and have them give you examples of how they would do that.
Money Talks
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It might feel weird to talk to your kids about their holiday shopping budget when stores have yet to slash the price of Halloween candy. But trust me, it's not. Planning their holiday gift purchases in October will give them time to be thoughtful about their spending.
Here's how you can start a conversation about budgeting and buying gifts:
βοΈ Help them decide how much they will spend on gifts this year. Depending on their age, their sources of income to budget may vary β allowance, money from odd jobs, a regular paycheck, a gift from the bank of Mom and Dad, or a combination of all of the above.
βοΈ Brainstorm with them a list of people they want to buy gifts for.
βοΈ Talk about how much they can spend on each person. Here's where you can encourage them to make handmade gifts, a low-cost and more meaningful alternative to store-bought ones.
βοΈ Show them how to compare prices on the items they want to buy.
βοΈ Finally, point out how their choices involve trade-offs. For instance, if they buy Gift A for one person, they may not be able to afford Gift B for someone else on their list β also known as opportunity cost. The sooner young people understand how opportunity cost works, the better they'll get at making smart money choices.
Loose Change
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π Some restaurants are serving up smaller portions with prices to match in an effort to entice cash-conscious customers to eat out more.
π Who knew Princess Diana loved this Texas-based mid-range department store?
π¦· Even the Tooth Fairy is on a budget. A recent poll on Tooth Fairy visits nationwide shows that kids are getting roughly $5 per tooth, down from $5.84 a year ago.
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'Til next time,
Audrey
βFounder &
Certified Financial Education Instructorβ
The FinLit Zone
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600 1st Ave, Ste 330 PMB 92768, Seattle, WA 98104-2246
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