3 Money Lessons from the Labubu Craze

The other day, someone asked me how I engage my kids when it comes to talking about money. I said that I would try my best to avoid lecturing them and instead look for opportunities to link money lessons to their interests.

At the moment, one of the hottest topics for kids is the Labubu Craze. So, I used that to spark a conversation with my daughters about why they think it’s so popular, and what money lessons we can learn from it.

What is the Labubu Craze?

For those who have somehow missed this latest trend, please let me give you a quick overview.

Labubu’s are these part-creepy, part-cute collectable toys - they are certainly unique. They come in many different shapes, sizes, colours and outfits.

The toys are so popular that people queue up when stores release new deliveries. Some versions are rarer than others, and collectors are willing to pay a premium to get them.

This trend is very similar to past crazes: Cabbage Patch Dolls in the 1980s and Beanie Babies in the 1990s.

3 Money Lessons From The Labubu Craze

I started this conversation by asking my daughters:

They came back with some really insightful points, which nicely led into different money topics.

ONE: "Blind-Boxes"

When you buy a Labubu, it comes in a sealed “blind box,” so you don’t know which version you’re getting until you open it.

When I asked why this would make them Labubu’s so successful, they explained that it makes it fun when you buy one. You don’t know whether you'll get one of the regular ones or score a rare one.

In other words, the creators of Labubu have gamified the buying experience. That excitement becomes free marketing when people share what they “unboxed.”

💡 Money lesson: People don’t just spend based on logic; they spend based on emotions. Companies know this and design experiences to make us feel something - excitement, exclusivity, fun - so we spend more.

With my kids, I stress balance. I don’t want them to be robots who only buy the cheapest option. It’s fine to spend on things that bring joy, but it’s important to pause and notice when emotions are driving the purchase.

One trick we use is the 24-hour rule. If they’re excited to buy something, they wait a day before spending. Often the excitement fades, and they avoid regret buys.

TWO: Limited Supply

As my daughters highlighted that some of the Labubu's were rarer than others, I thought I’d explore that are a bit more.

Because they’re only produced in limited quantities, demand often outstrips supply. This has led to long queues at stores, quick sell-outs online, and a booming resale market where certain rare figures trade hands for many times their original price.

💡 Money lesson: This is supply and demand in action. If something is scarce and desirable, people will pay more for it.

This led me nicely back to a recent blog on the difference between the Stock Market and Crypto. In that blog, I highlighted that crypto makes money, as there is a limited supply and people believe it will be more desirable in the future, so they will make more money. However, if it stops being desirable, then people will lose a lot of money.

The big question is, how long will Labubu remain popular? They will only keep their value as long as they remain desirable. I don’t know the answer to that question, but I do know that similar crazes have come and gone.

Key takeaway for my kids: It’s very hard to predict what will be valuable in the future. Some people get lucky, but relying on luck is not a smart money plan.

👉 Read More: The Stock Market and Crypto

THREE: Celebrity endorsement

Finally, my daughters pointed out that Lisa from Blackpink, one of the biggest K-pop stars in the world, is a big fan of Labubu and often shows them off.

My question to my daughters was: Why does it matter if Lisa from Blackpink has one?

They explained that she is one of the most popular and coolest people around at the moment, so everyone wants to copy what she has.

This was a great way to open the conversation about how companies get people to spend more money.

💡 Money lesson: Companies know that people follow what others they admire do and therefore spend more. It’s known as the Authority Effect. That’s why they pay celebrities huge sums to endorse their products.

I explained that this is especially powerful with products like perfume. You can’t smell perfume through a TV ad, but if Natalie Portman is the face of Dior, suddenly you want to buy into that image. It works, which is why so many perfumes and aftershaves are fronted by celebrities.

I looked up which celebrity endorses the aftershave I wear and found out it’s Johnny Depp… might be time for a change!

I used this lesson to get my daughters thinking about whether they really want something or whether they just want it because a celebrity has it. Again, I don’t want to put them off buying something for that reason, I just want them to be mindful spenders and avoid falling for the tricks companies use to get us to spend more.

👉 Read more: How Companies Use Clever Tricks to Get Us To Spend More

Summary

Trends come and go, but the money lessons behind them are timeless.

Remember, companies are always going to be looking for ways to get people to spend more. For Labubu, they used the following:

1. Blind-Boxes: People buy based on emotions and excitement

2. Limited Supply: People see the opportunity to make money if they remain desirable.

3. Celebrity Endorsement: If someone they respect buys something, others will copy.

If your kids can spot the tricks that make Labubu (or the next craze) so irresistible, they’ll be better prepared to make smarter choices with their own money.

👉  Learn more:

• The Three Rules of Wealth (Essential)

• How Companies Use Clever Tricks to Get Us To Spend More (Related)

• The Stock Market and Crypto (Popular)

Next week, I’ll be sharing the conversation I had with my daughters about 'How fast can money grow?', so make sure you subscribe so you don’t miss it! (Update: Read now here)

Thanks for reading - if you enjoyed this blog, please help share it with other families via LinkedIn here

Will

P.S., I hope one day the next craze will be Grandpa’s Fortune Fables. Help start this craze by getting a copy for your kids. Available on Amazon or as part of the Wealthy Kids Club 😁