Managing Digital Spending: A Guide for Parents
In an always-on digital world, spending is an ordinary part of daily family online life.
Keeping tabs on all this spending can feel difficult. But teaching your child to manage their online spending is important for now and the future.
These ideas can help you take control and support your child to build positive spending habits online.
1. Make it a regular discussion.
Your child should feel comfortable asking you questions about online spending – but it can also be a two-way thing.
For example, if they like gaming, they may spend money in ways you don’t recognise or understand. This might be on virtual currencies, in-app purchases, subscriptions, loot boxes, or season passes.
The best way to understand is to ask your child to show you the games they play or the apps they use – including where and why they may spend money. It’s a great starting place for opening up further conversations. And remember: focus on guidance, not judgement.
2. Set spending boundaries.
Expectations for your child’s spending should be clear and consistent. You can use parental controls to manage spending boundaries – but make sure your child understands what these are and why they are there. These tools can prevent accidental big spends or accumulating amounts.
You can use tools on many devices and apps to:
- Manage or restrict app store purchases
- Manage or restrict in-app purchases
- Cap spending to weekly or monthly limits
- Receive spending notifications
Some games also have options to turn off real-money purchases. See what you can find out about the platforms your child uses to help make decisions or adjust restrictions as they grow.
3. Virtual currencies and microtransactions.
Digital spending often feels frictionless, and it can only take a few taps to purchase or sign up to something.
Microtransactions – small but regular purchases – can quickly add up in games like Roblox, which uses virtual currency (Robux) bought with real money. It can often be hard to get your money back if you change your mind.
Help your child learn how apps and games tempt them to spend, maybe by looking at some of the ways they can make purchases seem essential.
You could also look at virtual currencies together and work out the value of in-platform purchases compared to offline buys – like toys, clothes or treats.
4. Manage payment options carefully.
You may have your own bank card connected directly in your child's device or online accounts. If you do, it is a good idea to make sure all purchases are securely password/PIN protected.
An alternative is prepaid cards (eg, Go Henry) or digital wallets specifically designed for families and children. These provide enhanced parental controls, such spending limits and instant transaction notifications, as well as saving incentives and budgeting advice for children.
5. Do an occasional spending review.
Find time to review spending and purchases together. Frame this as a normal part of managing digital life, not a punishment.
This is a chance to reinforce the real value of money and how digital transactions add up. Ask open questions like, "What did you enjoy buying?" or "Did you get good value?" If something's unexpected, approach it as a learning moment, not a reason for anger.
This can build trust and help them learn how to manage digital finances responsibly.
6. Talk about scams and phishing.
The digital world unfortunately contains various scams. You can help your child recognise some common 'red flags' including:
- "Too good to be true" offers, like promises of free in-game currency (eg, "free V-Bucks" or "Robux generators") or exclusive, deeply discounted items.
- Suspicious messages and links from unknown contacts asking for sensitive or personal information (eg, login information or passwords), or pressuring them to click on suspicious links. With advancements in AI, these can even include "deepfake" voice messages cloned from people they know, including you.
- High-pressure tactics that try to rush victims into making decisions. Be suspicious of messages that create urgency (eg, "limited-time offer!" or "your account will be deleted!") as this can make people panic and bypass critical thinking.
Always encourage your child to talk to you immediately if they encounter anything suspicious online.
For more detailed advice and resources on how to spot and avoid online fraud, explore our parent guide on online scams and financial threats.
Learn more.
Explore Parent Zone’s parent area, we have more articles and resources:
- Watch a short video on creating good spending habits.
- Read a parent guide about pressure on children to spend online.
Search our guides for info and advice about specific platforms.