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Shopping on social media the smart way

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When Ziwei Cong bought some sweatpants that caught her eye during a livestream shopping event on social media, she was disappointed when they arrived and didn’t fit well.

“It’s very easy for me to become irrational during these kinds of shopping events,” says the assistant professor of marketing at Georgetown University’s McDonough School of Business. She adds that the hosts can be very persuasive and hook you with limited- time offers to trigger impulse purchases.

Social shopping, or purchases made through social media sites that sometimes incorporate livestreaming events with influencers, is booming. Almost half of U.S. consumers (47%) say they’ve made a purchase on social media, and 39% say they have bought that way and would do so again, according to 2022 data in a report released in April by the market intelligence agency Mintel.

“Shopping on social media has really taken off more with younger consumers. They’re on their phones more and on social media more often, so it’s easier to purchase via social media when they find a product they like,” says Katie Hansen, senior retail and e-commerce analyst at Mintel and author of the report.

In Kimberly Palmer’s latest for the Washington Post, learn guideposts when engaging in social shopping.

This week’s money news

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This week’s top story: Smart Money podcast on travel tips and budgeting for a non-traditional life. In other news: Getting more EVs will require recycling more old batteries, June Fed meeting and a pause on rate hikes, and 7 ways for couples to earn travel points and miles together.

Smart Money Podcast: Nerdy Travel Tips, and Budgeting for a Non-Traditional Life
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions.

Getting More EVs Will Require Recycling More Old Batteries
Battery recycling is in its infancy. The EV future depends on it growing up.

June Fed Meeting: Finally, a Pause on Rate Hikes
After 10 consecutive rate hikes, the Fed paused the federal funds rate at its June meeting.

7 Ways for Couples to Earn Travel Points and Miles Together
Two wallets are better than one. Earning with your partner can really boost your points game.

You’ll probably live longer than you think

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Women often don’t score as well as men in surveys of financial literacy. One area where we seem to do better is “longevity literacy,” or understanding how long we’re likely to live.

Longevity literacy is essential to smart retirement planning. Overestimate your longevity, and you could retire too late or scrimp too much. Underestimate it and you could run short of money.

In a recent TIAA Institute study, 43% of women correctly estimated the life expectancy of 60-year-old women in the U.S. (The right answer was 85.) Only 32% of men chose the correct answer for the life expectancy for 60-year-old men, which was 82. Men also were far more likely than women to underestimate life expectancy — and that’s a huge potential problem for both sexes.

A man who expects to die in his 70s might draw too much from retirement funds or start Social Security too early. That could leave him — and the spouse who may outlive him — with too little income later on.

In my latest for the Washington Post, learn what you can do to protect against longevity risk.

This week’s money news

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This week’s top story: Smart Money podcast on money scams, and renting credit card tradelines for cash. In other news: AI and hiring decisions,  June 2023 rent report, and CFPB warning that student loan borrowers will struggle with repayment.

Smart Money Podcast: Money Scams, and Renting Credit Card Tradelines for Cash
This week’s episode starts with a discussion about new scams, including Google Voice and AI scams.

AI Could Prevent Hiring Bias — Unless It Makes It Worse
Advocates say AI can eliminate human biases in hiring. Skeptics point out that AI tools are trained by … humans.

June Rent Report: Rent Growth Is Cooling, but Prices Remain High
The May data, released June 6, shows typical rent prices in the U.S. are now $2,048.

Student Loan Borrowers Will Struggle With Repayment, CFPB Warns
One in five borrowers could struggle when student loan payments resume later this summer.

This week’s money news

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This week’s top story: Smart Money podcast on making hobbies affordable, and saving money priorities. In other news: What a usury law is and how it affect interest rates, May jobs data shows strong growth, even as unemployment rose, and 3 signs it’s time to pause credit card spending.

Smart Money Podcast: Making Hobbies Affordable, and Saving Money Priorities
This week’s episode starts with our tips about how to make hobbies more affordable.

What Is a Usury Law and How Does It Affect My Interest Rates?
A usury law is essentially an interest rate law. For the most part, loan rates are controlled at the state level.

May Jobs Data Shows Strong Growth, Even as Unemployment Rose
The May unemployment rate is 3.7%.

3 Signs It’s Time to Pause Credit Card Spending
Switching your payment method to cash or debit may help you reach financial goals or pay down debt faster.