Hey there! It's Talk About Money Tuesday, my favorite day of the week!π€
The more I teach young people the money skills they need to avoid costly mistakes as adults, the more I realize it's just as important for them to learn how to recognize when someone (or something) is trying to influence a financial decision they haven't made yet.
Those influences can show up in everyday shopping. A product seems irresistible because an influencer loves it. A purchase can seem like a must-have item because a website says they're only two left. A five-star rating can boost a teen's confidence about an item before they have a chance to ask who wrote the reviews and whether they were paid.
Young people don't need to believe that every advertisement is bad or that no recommendation can be trusted. But they do need help creating a pause between wanting something and buying it.
One way to build that skill is to teach young people to look behind the message and think about what's happening behind the scenes.
Parents and mentors can help by making the invisible parts of a sales pitch visible: Who is trying to persuade me and what do they want me to do? And what do they get if I do it?
Those questions can help kids become more confident and thoughtful about the choices they make, now and as they get older.
Money Stat
$2.1 billion
Social media has changed how people find products, financial opportunities, and advice. It's also the go-to-tool for scammers, who tricked people out of $2.1 billion in 2025, according to the Federal Trade Commission.
The most reported scams on social media revolved around shopping. But the costliest social media scams were linked to "investments," with $1.1. billion falling in to the hands of investment scammers.
What social media platform was the most lucrative for scammers? FaceBook.
Get in the Zone
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Money skill: How to pause before making discretionary purchases
Why it matters: Manipulation becomes more effective when people act quickly. A pause gives young people time to think about whether they genuinely want something or whether they're acting on an impulse created by social pressure or persuasive messaging.
The same skill that helps a pre-teen avoid an unnecessary $15 purchase can help a 22-year-old evaluate a major purchase or an investment opportunity
Try this: β‘οΈ Give the pause process a catchy name, like "Pause and Prove." When your child wants something, ask them to wait 24 hours before buying and explain why they want it and why they think it's worth the money.
β‘οΈ For a bigger purchase, ask them what three different groups say about the item: the seller, independent reviewers, and credible experts. Explain that research is stronger when it includes views from people who don't all make money from it.
β‘οΈ Let your kids make some small spending mistakes. If they buy something with their own money that they regret, resist the urge to rescue them right away. Ask them what convinced them to make the purchase in the first place and what red flags they might look for next time.
Smart Money Quiz
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A website says a product is "selling fast," 48 people have it in their carts, and a 25% discount will disappear in 10 minutes. Which psychological tactics are at play?
A. Social proof and scarcity
B. Compound interest and diversification
C. Budgeting and opportunity cost
D. Risk and insurance
(The answer is at the end of this newsletter.)
The Language of Money
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Giving young people the vocabulary to name a tactic makes it easier to recognize. Use these youth-friendly terms to explain to them what could be happening as they're scrolling, shopping, or watching someone recommend a product online.
Persuasion: Trying to change someone's mind or convince them to do something.
Social proof: When something seems better or more trustworthy because other people seem to like it.
Scarcity: Making something feel limited, which can make people want it more.
Incentive: Something that encourages a person to do something, such as money, a free product, or a discount.
I teach youth and young adults how every money choices can build lifelong financial habits that help them avoid costly mistakes.
If you know of organizations that work to prepare young people for adulthood, send them my way. I'd love to work with them!
Loose Change
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ποΈ TikTok Shop is super addictive. There are reasons for that.
πΆπ»ββοΈ Bragging about how long you waited in line to buy something is apparently a flex now.
π₯ Gen Z is fighting back again consumerism. Welcome to the de-influencing movement.
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
βA. Social proof and scarcity. The website is trying to make potential buyers feel like they need to buy the product quickly. Seeing that lots of people have it in their carts is social proof, while the short window for the discount creates scarcity and makes buyers feel like they have to act fast.
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