Hey there! It's Talk About Money Tuesday, my favorite day of the week! π€
This last week of January is Identity Theft Awareness Week and Data Privacy Week, so at the very least we all need to upgrade our passwords (more on that later). Identity theft and data privacy aren't just tech topics. They're both linked to your child's financial future.
When someone steals a child's identity, they can open credit cards, apply for loans or government benefits, or open various accounts in that child's name. And since youth don't typically interact with credit bureaus and banks, any fraud against them probably won't be discovered until they're adults.
Meanwhile, everyday habits like sharing photos of your kids, posting birthday shout outs, or using weak passwords can give cybercriminals access to the currency they seek.
That's why teaching young people to protect their personal info and data is just as important as teaching them to budget.
Money Stat
1 in 50
Identity theft isnβt an abstract risk. Itβs happening to kids right now. One in 50 children in the U.S. will become a victim of identity theft every year, according to Javelin Strategy & Research. The cost of child identity theft: a whopping $1 billion annually.
Criminals target children's information because their blank credit history makes it easier to build fraudulent profiles that can go undetected for years.
When child identity theft victims reach early adulthood, they discover they have poor credit and massive amounts of debt β which makes it nearly impossible for them to buy a car, rent an apartment, or pass a credit check.
Money in the News
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The news: A 19-year-old college student was recently sentenced to four years in prison and ordered to pay roughly $14 million in restitution for hacking into a student information system used by K-12 school districts.
The cyberattacker, Matthew Lane, was accused of gaining access to data that included names, email addresses, Social Security numbers, and more.
Lane allegedly told PowerSchool officials that if the company paid him $2.85 million in Bitcoin, he wouldn't leak the data of more than 60 million students and 10 million teachers. PowerSchool, now facing multiple lawsuits, paid the ransom.
What it means for young people: Schools and education platforms collect student data way before students can monitor or protect their own digital identities. Once that data is leaked, cybercriminals can use even the most basic information to create fake identities or fuel realistic phishing scams. The consequences of this kind of data breach almost always extend well beyond the initial incident.
Tips for parents & mentors: School usernames and passwords provide access to more than just grades, so treat them just like banking credentials. Use strong, unique passwords and, if possible, you definitely want to enable two-factor authentication.
Watch for warning signs that data thieves are at work, such as unexpected password reset emails or messages asking for personal information.
And if something seems off, report it to the school ASAP. Quick action can prevent your account from being compromised and limit how much information a hacker can access.
Get in the Zone
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Money skill: How to manage and protect personal and financial information
Why it matters: Financial literacy isn't just about money and budgeting. It's about protecting your money, credit, and data over a lifetime. A key skill for young people to learn in the digital age, is how to keep financial fraudsters and data thieves at bay.
Try this: What are some basic things you can do with your kids to teach them how to manage their data and online accounts?
βοΈ Walk them through how to use privacy settings on social media and in apps so they can understand who can see their information and how to limit access to people they know and trust.
βοΈ Help them create passwords that are hard to guess, and remind them not to reuse passwords across school, social, and gaming accounts.
βοΈ Teach them to keep their Social Security number private. Emphasize that legitimate apps rarely, if ever, need this information.
βοΈ Model checking your own credit reports at least once a year, and explain how reviewing your report helps you catch errors or fraud early.
These are simple steps, but they build strong habits that help protect kids' identities over time.
The Language of Money
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Learning key data privacy and identity theft terms can help make these topics feel more manageable to kids and teens. Use these plain-language definitions as you talk to young people about the importance of safeguarding their information.
Personal data: Information that identifies you, like your full name, birth date, or address.
Data breach: An incident when private data falls into the wrong hands.
Two-factor authentication (2FA): An extra safety step to check that it's really you, like a password plus a code sent to your phone.
Privacy settings: Controls that keep your information safe on apps and online and let you choose who can see it.
Loose Change
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π» Ransomware gangs used legit-looking job ads to expand their operations. Teenagers responded.
π― Cybercriminals are increasingly targeting tech-savvy Gen Zers with multiple jobs and no separation between their personal and professional lives.
π This report shows how much people don't even try struggle to create strong passwords. Spoiler alert: 123456 is the most common password in the world.
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 βhereβ.
'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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