This April marks Financial Literacy Month and not-for-profit, Financial Basics Foundation is highlighting the need for improved financial literacy education to counter the sophisticated marketing tactics used by ultra-cheap retailers like Shein and Temu to lure young consumers into making unnecessary purchases.
Through its free online toolkit of programs and resources, Financial Basics Foundation aims to empower young people to make better choices when shopping online.
“Financial literacy isn’t just about saving, investing and interest rates, it’s about being able to recognise value, making informed financial decisions and resisting the draw of manipulative marketing campaigns,” Financial Basics Foundation chief executive Katrina Samios said.
“Retailers use sophisticated digital tactics to create a sense of urgency and drive impulse spending, often targeting young consumers who may not fully understand the long-term financial impact of their purchases.
“By building financial capability, young people are equipped with the skills to navigate online shopping wisely and recognise predatory digital marketing strategies.”
According to recent data from Roy Morgan, the Australian e-commerce landscape is rapidly shifting with budget retailers like Temu and Shein recording unprecedented growth.
In the past year, more than 2 million Australians shopped across these platforms every month, generating over $8 billion combined annual sales.
Within this consumer-base is 14-24-year-olds which account for 15% and 23% of users on Temu and Shein respectively,indicating that Gen Z consumers represent of a new era of e-commerce, with a unique profile of online shopping preferences.
During Financial Literacy Month, Financial Basics Foundation is seeking to highlight this issue and promote a balanced approach to online spending.
Through its online educational financial resources, they urge young consumers to follow a few basic financial rules of thumb: Recognise Marketing Tactics, Practice Conscious Spending, and Seek Financial Education.
For further information on the research and resources provided by the Financial Basics Foundation, visit https://financialbasics.org.au/
