Have your kids spent money online without your permission?

Our kids’ experience of money is a world apart from when we were growing up. Instead of a handful of coins exchanged excitedly at the toy store, today it’s ‘Tap & Go’ or a ‘Buy Now’ button with no real thought for the value.

Fresh research from YouGov and commissioned by Kit – a money education and management app for kids – found that despite 72% of parents being concerned about the influence of online games on their children’s attitudes to money, almost half (48%) avoid discussing money with their children.

As digital spending has become easier, almost half (49%) of parents claim their kids spent money without their knowledge or permission. These parents say kids have spent an average of $179.31. With 22% racking up between $200 and $499 over the years.

33% of parents say their children have taken money from their wallet. But 41% say their kids have used their parent’s credit card or pre-supplied bank details for online shopping. And 37% say the stolen funds have been spent on in-game credits.

Yish Koh, Managing Director of Kit says, “Kid’s experience with money is very different to what it was ten or even five years ago. Parents are struggling to help their children learn and practice good money habits. It’s because they are bombarded with in-app purchases, gaming related offers and crafted enticements on a daily basis.”

Learning basic money habits such as earning, spending, saving and investing are key to building financial capability in children.

“Kids need real world lessons to build good money habits from a young age. However, parents and guardians face challenges when teaching them about money. They struggle to give them autonomy in the digital world.”

Boy with Credit Card and Phone

LoveAvery early learning toys MREC

So how do parents start the conversation about good money habits?

Yish says that teaching kids about money should be done in their world and on their terms. So look for opportunities that allow you to do that.

“Online gaming is an environment where they spend and therefore has the potential to influence kids’ attitudes towards the value of money. Giving them the option to choose between online gaming tokens or a new toy could help them make the connection between the online and real world of money.”

She recommends sitting down with your kids to work through how they want to spend, save or invest their pocket money.

“This builds critical thinking, allowing them to make informed decisions about budgeting. If your kid responds well to it, perhaps you could get them involved in the household budgets too.”

“The important thing is to make the conversation fun and engaging, and communicate with them on their level.”

Kit is designed to help families have healthy and stress-free money conversations. The app is currently available in trial mode to 5,000 people living in Australia.

Developed in collaboration with external, independent experts, the app is kid-first, which means speaking to them at their level throughout the app.

“Kit creates a learning experience that’s fun and engaging for kids. It gives them some level of autonomy, while giving parents ultimate oversight and control.”

“They say kids grow up fast, but the world of money and commerce is changing faster, so Kit’s designed to ensure kids and their parents can continue to keep up. We take an evidence-based approach to money lessons. The impact of Kit will be measured in much more than just pocket money saved.”

Kit Money Education App

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By Angela Sutherland
After spending many years hustling stories on busy editorial desks around the world, Angela is now mum of two little ones and owner/editor at Kids on the Coast / Kids in the City. She is an atrocious cook and loves cutting shapes to 90s dance music. Angela is the editor of Kids on the Coast - a free family magazine whats on guide for Kids: things to do, school holiday fun and free activities for kids... Fun attractions, family food & travel, kids health & wellbeing, kids parties venues, parenting, pregnancy & babies, guide for parents. Servicing Brisbane, Gold Coast, Sunshine Coast and beyond, Kids on the Coast is an online guide for parents with kids things to do with kids, schools and education and lifestyle news located on Gold Coast, Sunshine Coast & Brisbane, QLD.

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