I want, therefore I need?

Adèle Manseau | Desjardins Group

There's a point in our lives when we come to realize the world is full of possibilities—it's called adolescence! During this time, kids don't want to miss out on a thing; they think in the here and now, and live by the YOLO mantra: You only live once.

Some young people are drawn to technology, others look for designer clothes and some kids just want to buy . . . everything. Sometimes their appetite for shopping is almost visceral.

Unfortunately, there's no sure-fire way to help your children cross this rocky period where emotions tend to get the best of us. The simplest approach is to focus on the basics, which will teach them good consumer habits.

Needs and wants
All of us have needs and wants—but there's a big difference between having the essentials and wearing designer labels, owning the latest smartphone or redecorating your room.

In today's consumer world, it's essential to be able to tell the difference between needs and wants. This becomes especially important when students start earning a little cash—kids often feel rich with money coming in and quickly snap up something they've been dreaming of, instead of putting some of their pay into savings.

When emotions come in to play
Adolescence is also a time that is rife with emotions. Decision-making can become more difficult if our judgment is clouded by our feelings and the opinions of our family and friends.

Many ads have a considerable influence on trends and what kids are interested in. The connection between emotions and decisions is well recognized by marketers; holding a sale, for example, is an oft-used strategy that appeals to our senses. But just because an item is on sale doesn't mean that we actually need it.

Advertisements
Every year across the globe, the cost of advertising exceeds $500 billion, so you can bet that a good deal of thought has gone into some of the ads we're exposed to. And there's a lot of advertising out there—studies show that children may see more than 40,000 TV commercials annually.1.

Talk with your children about the ads they see, whether on TV, online or elsewhere. Ask them what they understand from the message, who they think the intended audience is, and what the purpose of the ad is. Doing this will give your children a chance to think critically. They'll get a better grasp of the world of marketing and how companies try to influence us, shaping our desires so we purchase non-essential products.

Consumer rightsYoung consumers need to develop the reflex to get informed. They have rights, too, but many young people aren't even aware of them. Charles Tanguay, from Office de la protection du consommateur, tells us about a few of them that particularly pertain to young consumers:

“There are rules that apply to cellphone plans, warrantees and online purchases, and for your protection it's important to know what's out there:

• Penalties for cancelling a cellphone plan are now regulated. Contracts are no longer automatically renewed, so kids can change providers more easily and shop around for the best price.
• When the manufacturer's warranty has expired, an item's legal warranty may apply. A cellphone should work properly for more than 1 year.
• If your child has bought something online with a credit card and would like to cancel the purchase, in certain cases you may use a chargeback. To do this, you'll need to understand how it works and meet certain conditions.”

The Government of Canada's Services for Youth - External link. This link will open in a new window. consumer protection web page is a great source of information and is worth a look.

For tips on talking finance with your teenagers, see High school students.