header.search.error
As soon as your kids discover gaming apps, you’ll be hearing about in-app purchases. How to explain the hidden costs to your child.
A quiet moment in your hectic family routine is always welcome. It’s especially relaxing when the kids occupy themselves for a while. But when parents finally want to enjoy some peace and quiet, it’s not uncommon for the smartphone or tablet to come into play. As long as they have limited screen time and a balance with other activities, such as playing outside, doing sports or meeting friends, there’s nothing wrong with children playing on a mobile phone.
Still, it’s annoying when in-app purchases pop up in a supposedly free game, leading to unexpected charges.
Many gaming apps are free to download. However, later when you play the game you can purchase additional content, services or virtual currencies. Most of the time, these are extras that help children progress more easily in the game – for example, a magic comb to power up their glitter pony, or a lightsaber that helps them reach the next level. These upgrades are called in-app purchases.
Precisely because in-app purchases are so tempting, they are well-suited as a tool for financial education and media literacy. Now that you have your child’s full attention, talk to them about the fact that these purchases cost real money and do not come for free. This is also an opportunity to teach them about mindful consumption, especially healthy consumption of media (in German). Take a look together: How often do these offers pop up? How do games try to tempt you into making a purchase with colorful images, rewards or time pressure? Your child will learn to recognize typical advertising and marketing mechanisms and better assess consumer traps.
You can also use the opportunity to reflect on your own behavior: How do you personally approach online shopping, subscriptions or in-app purchases? Children learn by observing adults. An open conversation as equals helps your child to better understand financial risks – for example, to understand that certain apps are deliberately designed to trigger repeat purchases.
Start with the most important point: let your child explain. Why do they want to buy an extra add-on in a particular game? Maybe it’s about more than just getting to the next level. Their interest in the game often plays a role, as well as the sense of belonging to a group or comparing themselves with other kids. Take your time, sit down and hear them out. You might also briefly interrupt your child while they are playing and ask: “Why do you play this particular game? What do you find exciting about it?” And: “Why do you want to buy that? What do you expect to gain from it?” This allows your child to take a step back and better understand their own desires and motives.
To unlock parts of a game more easily, you often have to spend money. As money isn’t exactly a fun topic for kids, you should try to explain this mechanism using concrete examples. Calculate together how much multiple purchases cost and whether it’s really worth it. In UBS Digital Banking, you can use UBS key4 insights to track expenses and understand habits. When children see how many small amounts add up to a large total amount, they understand the extent of their spending much better.
Agree on clear rules about who pays for what. What must your child pay themselves and what do you cover? Even when the phone belongs to you, you don’t have to automatically pay for everything. If your child receives pocket money or a youth wage, it may be a good idea if they pay for in-app purchases partially or entirely themselves. They will often think more carefully about whether the game expansion is really worth it, or they would rather spend their money on something else.
If your child receives pocket money, they can cover part of the costs themselves. This helps them learn that once they spend money on an in-app purchase, it’s gone for good.
Agree on a budget together: How much can your child spend per week or month on in-app purchases? Also talk about what other things they will have to give up if some of their allowance is spent on games. This makes it clear that every purchase is a conscious decision and money can only be spent once.
Compare the amounts spent on these in-app purchases with everyday purchases. What could you buy with the same money at the grocery store? For example, if your child makes five in-app purchases costing CHF 2 each, they’ve already spent CHF 10 of their pocket money. Could that money have paid for part of their dream soccer ball? Discuss which purchases were really important and which were just for fun. This allows your child to learn step by step to make more conscious decisions about what they want to spend their money on.
Ensure that automatic in-app purchases are disabled in your children’s games. Only allow purchases after they’ve asked you first; after all, you wouldn’t just hand them your wallet. In particular, younger children up to and including primary school (around eight years old) should be protected as much as possible from uncontrolled in-app purchases.
As parents or guardians, we have the responsibility to protect our children.
Download new apps together at first and check the settings. Choose applications that offer limited options for purchases or allow you to set limits. If your child makes in-app purchases without asking you first, show them the phone or app bill and work out together what the game actually cost.
The key is: Your child should learn how to handle apps and in-app purchases – this is part of their financial education –, but in a protected environment and according to their level of maturity. And maybe there are apps whose additional features you consciously want to support, for example, an app for learning a language or practicing their times tables.
Make an appointment for a non-binding consultation or if you have any questions, just give us a call.
Disclaimer
