A question for financial gurus: Is it worth it to keep your Hulu?

Answer: The average consumer spends $219 per month on subscription services

Questions:

• What subscription services do you think are essential, and which could be considered luxuries?
• How should an individual decide which subscription services to keep and which to cancel?
• Discuss the concept of opportunity cost in the context of subscription spending. What are individuals potentially giving up by maintaining these expenses?

Here are the ready-to-go slides for this Question of the Day you can use in your classroom.

Behind the numbers (C+R Research): 

"On average, $86 per month was the initial amount consumers estimated they spent on subscription services. 

But upon closer look at their itemized expenses, the average monthly spend for consumers was more than 2.5 times the amount they thought at $219 – a whopping $133 higher than their original estimate. Almost one-third (30%) of the people underestimated by $100 to $199 and nearly a quarter each underestimated by less than $25, $25-$99, and $200 or more."

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One way to avoid losing track of your subscriptions is to review your credit card statement. Here's the NGPF Activity - FINE PRINT: Credit Card Statement to teach your students how to interpret this statement.

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About the Author

Ryan Wood

Ryan is the Partnerships and Adoption Manager for Next Gen Personal Finance’s midwest region. He brings his experience as a former teacher, curriculum designer, and sales and marketing professional to state organizations and school districts in supporting the implementation of their personal financial education efforts. He graduated from the University of Wisconsin-Green Bay and earned his teaching credential from Saint Mary’s University in Winona, Minnesota. He proudly taught at two rural high schools in Wisconsin before transitioning to curriculum design at NGPF, and is now excited to be on the front lines in delivering the best possible financial education in the midwest. He and his wife have three beautiful daughters, each of which inspire him to share the impact of being sound financial stewards both at home and as lifelong learners.