By Cheryl Mattox Berry
Beware: Marketers and ad agencies have put a target on your back. Social media have made it easy to bombard you with sales pitches for everything from diet soda to designer shoes.*
A recent study shows that U.S. teen spending (products bought by and for 25.6 million teens) totals $208.7 billion a year. Teens are considered the largest consumer demographic because they have more disposable income.
It stands to reason that teens need to learn how to manage their finances and spend money wisely while they’re in high school. Next fall, Miami-Dade County public schools will offer a financial literacy curriculum designed to teach seniors how to handle personal finances and avoid crushing credit card debt.
The financial education unit will be funded by a $118,000 grant from Discover Financial Services. The grant is part of a $10 million commitment over five years to teach personal finance in public schools across the country. So far, Discover has awarded 127 grants to 206 schools in four school districts – Chicago, Dekalb, Ill., Baltimore and Miami-Dade County.
Because of the recession, teens have learned more about money – at school and home – than they would have during a normal economy. A change in a family’s finances, however, hasn’t reduced the pressure to buy more things, such as computers, cell phones, MP3 players, etc.
As part of the class, teens also should be taught advertising strategies, specifically how advertisers use direct ways (ads) and subtle ones (celebs using and wearing items) to peddle services and goods. Marketers know teens worry about fitting in, and they try to make them feel insecure if they don’t buy what everyone is talking about.
Here’s a fundamental question: Do you really need the latest electronic gadget? There’s always going to be a newer model. At some point you have to ignore the ads and say the one I’ve got is fine, and my social status isn’t going to change if I don’t buy the fancy new whatchamacallit.
Don’t just be a consumer: Be an educated consumer. Learn what to buy, when, and the best way to pay for it. Developing a spending strategy will save you money in the long run. You can take that to the bank.
*Full disclosure: A banner ad may come to this blog soon.