Next we're going to talk about consumer activism. The exercises in this chapter will increase the positive impact you have in the world with your money, which also typically has the wonderful side effect of decreasing the amount you spend.

What Is Consumer Activism?

Consumer activism means using your dollars to support or vote for things you believe in. It also means boycotting (or not using your dollars to support) companies that have values or take actions that are in opposition to what you want to support. The idea is that when we buy or don't buy something, our group buying power can influence companies to change their practices and policies.

Consumer activism can mean buying (or not buying) your everyday products or services from companies that believe and support the same values as you. It can also be in the form of giving to nonprofit organizations doing work that's important to you, and there are also opportunities to invest our money in ways that have an impact (we cover investing in Chapter 8). In order to become a consumer activist, we need to decide what our activism looks like.

Some Consumer Activism Inspo

For me, it's always helpful to learn and get inspiration from what others are doing. Sometimes this whole process can feel very abstract and overwhelming but Tanja Hester, author of Wallet Activism, maintains that it's worth it: “The collective good needs you.” I've included Tanja's framework for making financial decisions in the following section. I also interviewed Georgia Lee Hussey, the founder and CEO of Modernist Financial whom you've already met, and Kara Perez, the founder of Bravely Go. All three are conscious consumers, activists, and financial educators.

It's important to note that this is what their criteria looked like at this point in time, and, just like yours, their criteria may change and evolve.

From Tanja: She gives us four guiding questions to ask before making a decision in order to make “choices that promote real change.” Use this framework for your biggest, most impactful choices.

1. For whom? Does the proposed action serve those who truly need the change, because they have the most disadvantages, or does it largely serve those who already have lots of advantages?
2. Can everyone do this? Is this choice that I'm considering something everyone can do? And, if everyone did it, would that be sustainable? If not everyone can do it, what does that tell me?
3. Is it too cheap? Is something priced so low that it could not possibly have been produced or couldn't be offered without exploitation of people, the planet, or both?
4. What am I funding? What type of world am I helping create if I contribute profits to the entity offering something?

From Kara: Here's how she defines her process.

From Georgia: Here's how she focuses her spending.

• For Georgia, company labor practices and workers’ rights are number one. She shares, “I just want people to be treated fairly. It's ultimately about relationships and kindness.”
• When possible, she shops small and local (avoiding big-box retailers). When you spend $1 at a local business, $0.68 stays in your local economy versus $0.43 for a large retailer.¹ But because labor practices and workers’ rights are her number one, she shares, “if I am on a road trip and there is no local coffee to be had, I will happily spend my money at Starbucks because Starbucks pays for f***ing undergraduate degrees and healthcare.”
• She also supports companies with headquarters in her area because it keeps a lot of resources local.
• For clothes, she buys secondhand or consignment pieces. She shares, “Fast fashion gives me hives.” Otherwise, she has one or two pieces per year made by a local fashion designer. “He's made me clothes that I'm still wearing 15, 16 years later. It's not cheap but it fits me perfectly, is exactly what I want, and it supports a local maker.” If you want to check him out, his website is Adam-Arnold.com.

Your Consumer Activism Criteria

Think about what's important to you. What criteria will you think about before supporting a company?

Rank each of your criteria in order of most important to least important. If that's impossible, it's okay if there are some ties.

It's important to note that it's a tremendous privilege to be able to make choices with a consumer activist lens. Many people can't choose a more expensive option because the company is making better choices. Many don't have time to do this type of research given work and caregiving schedules. If you don't have this privilege, it's important to take care of your own needs first. It's okay to pick and choose where you can be a consumer activist. It's okay to start small and work your way up.

Sometimes Not Buying Anything at All Is the Best Option

During our interview, Tanja shared that she often bristles at the phrase consumer activism because it frames us as a consumer. It's easy to forget that sometimes the best strategy for our wallets and the environment is to just not buy anything at all.

She gave the example of buying beautiful “eco-friendly” steel containers to replace the plastic ones in our kitchens. “Now we are throwing out the plastic containers and buying new products, and steel is incredibly resource-intensive to make.” I did this exact thing and didn't realize that I was double-spending and making a less environmentally friendly decision.

Sometimes a quick pause and gut check before we buy something can help. If, after you do a gut check, you decide that you do need to buy something, ask yourself: “Can I buy it used?” or “Can I use something I already have?”

Use Your Voice

In addition to voting with your dollars, you can use your voice. If there's a brand you love but wish they were doing things differently and better, tell them! On the other end, you can champion companies that are doing things that line up with your values. When a company hires a Black CEO or switches to compostable packaging, that's something we can shout from the rooftops to show that we care.

Do a Consumer Activism Spending Audit

Now it's time for your first spending audit. Look at each of your expenses (from Chapter 5) through your consumer activist lens and assign each a number on a scale of 1–5, with 1 being not aligned with your consumer activism criteria and 5 being completely aligned. If the 1–5 scale feels overwhelming, you can start with a simple Yes or No.

Where to do this: If your spending plan is in a spreadsheet, you can add a column to the left of each of your expenses. If you wrote your spending plan in the book, write the number next to it in a different color. I've also given you room to do it in this section. I included the total spend amount for the year so you can see how much of your money is going to each category. This can help you prioritize, as you may want to make changes first where you're spending more money.

You can find a list of resources to do consumer activism research in the Financial Adulting toolkit.

A lot of our consumer activism won't be a clear yes or no. Companies are big and complicated entities made up of many people, past actions, and future actions. There's a lot of gray in here so get ready for a very imperfect journey.

You might not think your rent has a consumer activism rating, but Tanja reminded me that living close to work or public transportation changes your commute and the climate impact. You can also take your research further and look at your spending as a whole. How much of your spending goes to highly aligned items versus spending that doesn't? If you want to support BIPOC-owned businesses, what percentage of your spending goes there? Or if it's important that companies pay a living wage, how many on your list pay at or above $15 per hour? You can look at each of your expenses individually and then as a whole to get a more comprehensive picture.

Remember, this is all about research and evaluating – no changes to be made yet.

Make Note of Anything You'd Like to Shift

Going through a spending audit can be very eye opening. There might be things we know we'd like to shift ASAP and others that are less urgent or more on the cusp. You might decide that you want to support local bookstores instead of buying from Amazon, or discover that only 5% of your expenses go toward women-owned businesses.

In the following exercise, make a list of each of the spending items you'd like to shift or, if you don't want to rewrite them, put a star next to them in your financial plan or highlight them. Wait to act on any of these until the next exercise.

Take It Step by Step

If you're feeling overwhelmed by where your money is going and the changes you want to make, I was (and often still am) right there with you. If you're feeling nauseous by what you found from your research, I know. But the good news is that it's much better to know and be able to make changes than to not know what your dollars are supporting (although it sometimes doesn't feel that way!).

Now it's time to make a plan, and it's okay to take it step by step. We'll always be learning. As Tanja says, “It's not about perfection. It's not about shaming yourself. It's doing what we can.”

Don't Forget About Banks

Where we bank is a financial decision that votes for our values over and over again. This is something Tanja feels very strongly about. “Nobody is talking about ethical banking and it's actually much more impactful than ethical investing. There is a direct line between the money in your savings account and fossil fuel lending.”

Let me explain. One of the ways that banks make money is by lending out the money we've deposited. They pay us for the money in our savings account (let's say 0.01%), lend the money out (let's say for 7%), and keep the difference.

“So you know the Dakota Access Pipeline?” Tanja says. “You don't like it. You hate it. Well, it's funded by Chase and Wells Fargo using the money in your checking and savings accounts.”²,³ There are some resources to check how your bank stacks up in the Financial Adulting toolkit. Tanja shares that you can also search your bank's name with the terms ECOA violation, FHA violation, and lending discrimination to see if they are a repeat offender.

Cultivate a Practice of Giving

If you have the opportunity and financial privilege, your spending plan should include giving. This could be by giving to nonprofits, mutual aid organizations, family members, or other individuals. It could be by giving money, but also donating goods and services and/or your time. Money isn't the only resource we have to give.

We can get caught up in all the details around giving, but just doing it is more important than exactly how we do it. Tanja shared, “It doesn't matter if you do a bunch of small donations, bigger chunks, spread it around different places or combine it into one place – just give.” This approach was honestly a relief. She shares, “Most nonprofits are doing so much incredible work with limited resources. These are people and organizations who really care.” If you want to do some research before giving, you can use GuideStar and Charity Navigator to evaluate nonprofits.

Through my work and personal financial life, I've found that giving is a lot like saving. If you wait until you think you have enough money, you'll never get started. If you want to start giving, choose an organization that is doing work you're passionate about (you might already have one in mind!), start with a small automatic contribution, and you can work your way up from there.

That being said, it's important to take care of yourself first. If you are struggling financially, it's important to wait to give. If you are paying off high-interest credit card debt or trying to build your emergency savings, I'd recommend you wait to start giving.

Also check if your employer matches donations. It's a great (and often overlooked) way to double your contributions without increasing how much you give.

Update Changes in Your Spending Plan

You'll notice that in most chapters and in many of the financial actions we take, there will be updates to your spending plans. As you cancel any expenses, you can remove them from your plan going forward. If the last section had you revamp your plan for giving, make sure to update that as well.

Your Financial Adulting Action Items

• Create your consumer activist criteria.
• Conduct a spending audit.
• Make a consumer activism plan for your spending.
• Evaluate where you bank and potentially make a switch.
• If you have the opportunity to do so, create your giving plan. If your company matches employee donations, make sure to get your donations matched!
• Update these changes (spending and giving) in your financial plan.

You are now a consumer activist. You know what spending is important to you and what types of companies you want to support with your business. As consumer activists we can always grow and do better. This will be something we revisit on a regular basis throughout our money journeys (I show you how in Chapter 14). Now, we're going to move on to how to make your money grow. It's time to talk investing!