The festive holidays mean an array of shiny new gadgets around the home, being played with by kids.
But new tech can mean unexpected bills – with one in three (33%) parents reporting being hit with an unexpected charge due to their child’s in-game spending, according to new research.
A further one in four (24%) parents say they have received an unexpected bill resulting from other digital activity by their children, for example by shopping on social media platforms, downloading data packs, or accidentally signing up to subscriptions.
Over a quarter (28%) of parents are unaware that payment details can be saved on digital game systems and technology, according to the research.
The survey of 2,000 UK parents with children aged under 18 in November was carried out for HSBC UK and Young Enterprise.
Parents generally reported being aware that their children need the right financial skills to play online safely, as the vast majority (93%) understand that games have features that require payments of real money to play.
Three-quarters (75%) of parents say they have tried to speak to their children about money management, realising their children need skills such as understanding the value of money, managing spending and recognising fraud risks.
However, three in 10 (30%) parents with children under the age of eight say they are not having financial conversations about the world of gaming and digital money management.
This is despite researchers estimating that seven in 10 (71%) under-eights have a tablet, and two-fifths (39%) have a games console.
Becky Moffat, head of customer at HSBC UK said: “Money can be a complicated subject, and it can be hard to know how or when to start talking about it with your child.
“Gamers of all ages are increasingly being presented with chances to spend, and so there is both a real need and opportunity for parents to have important conversations about saving, spending, or earning money.”
Sarah Porretta, CEO at Young Enterprise adds: “It’s never too early to start learning financial skills, and with tech being a popular Christmas gift, we’re asking parents to speak to their children sooner rather than later to help them manage money well, both on and offline this Christmas.
“When given the right guidance, gaming can be a good way for children to practise real-life money skills they can take with them into adulthood, and teaching those money management fundamentals early, is key to setting them up for success when they become more active online.”
HSBC UK and Young Enterprise have developed some tips for parents to help their child build healthy money habits and avoid the financial risks that could be lurking in games – a bit like the creepers in Minecraft or Super Mario piranha plants:
Talk about money early and often.
Use gaming and in-game purchases as an opportunity to start regular conversations about money from an early age.
When considering in-game spending, encourage your child to think about any future online and offline purchases they may like to make, to empower them to develop budgeting skills and manage their finances more effectively.
Get yourself in the game.
Gaming time can be an enjoyable, immersive and even educational experience for your child – but have you tried playing the game yourself?
This may help you understand how it works and any request that your child brings to you. With a clearer understanding, you can be well-prepared to create space for important conversations about money management and online safety.
Know the value of the game.
Get to know your V-Bucks from your Robux. To give your children the best advice, and to understand how large an add-on is, it’s essential to learn the value of the in-game currency they are using. There are a wide range of terms including gold, points, coins, or credits so it’s best to equip yourself by doing your research online.
Use device settings to protect payments.
With cashless payment methods often saved on devices, it’s easy to impulsively spend. Many devices have settings that require parental approval for in-game purchases. Make sure that these are turned on so that you can better control what purchases are made, and when.
Make sure you are clued up by taking a look at the guidance available on the relevant manufacturer’s website.
Be gaming smart.
Teach your children the “look out” signs for fraud and identity theft in their games so they can stay vigilant when playing online.
Red flags to watch out for include anyone asking personal questions – such as which school the child attends; anyone asking for card details, passwords or Pins; and anyone offering purchases that are not available through the usual payment system.
HSBC has a smart gaming hub on its website with tips and tools to help people stay in control of their spending. The bank also supports a free “money heroes” initiative from Young Enterprise, helping children to learn all about money.
Giving advice on its website, regulator Ofcom says parents should ensure that the games that children are playing are age appropriate – it is a good habit to check out the game and its rating before allowing your child to play.
Ofcom also reminds parents that it is important to have regular conversations with children about staying safe online.
