According to Consumer Reports, 40 million children between the ages of 5 and 14 purchase $16.7 billion worth of toys, food, and videos each year. What's more, studies show that they have a "significant influence" over another $165 billion in sales. In fact, consumer goods purchased by children have increased 20% in the past seven years.

Your kids are buying an awful lot of stuff, but do they know how to be smart consumers? Can they tell the difference between hype and real information?

A new educational campaign from the Federal Trade Commission (our tax dollars at work) aims to teach them just that. It's called The Real Deal, and its aim is to "encourage youngsters to be smart, responsible, and savvy consumers, to promote consumer confidence and to promote long-term responsible consumer habits."

Here are some tips from The Real Deal:

-- Read between the lines and separate fact from fantasy when reading an ad or listening to a commercial.

-- Think before buying (What do you want? What do you need? What's your budget?) and carefully research product claims.

-- Ask questions and talk to friends, parents, teachers, and others who might be familiar with a product you're interested in.

-- Try before you buy by calling a friend who has the item or asking the salesperson for a demonstration.

-- Shop around by telephone and call three stores to compare prices, models, and return policies.

-- Be assertive and tell the store manager right away if there's a problem.

The FTC has even put out a 12-page activity book to teach kids about being smart consumers. It's free and can be ordered by calling (202) 326-2222 or by sending a postcard with your name and address to:

Consumer Response Center
Federal Trade Commission
6th and Pennsylvania Ave. NW
Room 130
Washington, DC 20580-0001

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