1:00 AM 20th December 2024
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With One In Three Parents Facing An Unexpected Bill From Their Child’s In-Game Purchases
tis’ the season to learn about digital money management
![Image by StartupStockPhotos from Pixabay]()
Image by StartupStockPhotos from Pixabay
With 6.4 million UK families expecting Santa to gift tech-related items this Christmas, HSBC UK and leading financial education charity, Young Enterprise, are calling on the nation’s parents to take the opportunity to engage with their children about digital money management.
Right now in the UK, half (50%) of 5–7-year-olds and three quarters (73%) of 8-10-year-olds are playing computer games, with 14% and 28% of these respective age groups admitting to spending pocket money on game-related items like game packs, add-ons, or in-game currency.
This comes as one third of parents (33%) report being hit with an unexpected bill as a result of their child’s in-game spending – with the charges reaching an average of £50. A further one in four parents (24%) have received an unexpected bill resulting from other digital activity by their children, such as shopping on social platforms like TikTok, 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. Yet, parents report being aware that their children need the right financial skills to play online safely, as almost all (93%) realise that games have features that require payments of real money to play.
Three quarters (75%) of parents have tried to speak to their children about money management skills, realising their children need to understand the value of money (67%), manage spending (51%), recognise fraud risks (51%), budget (51%), be wary of identity fraud (44%) and be wary of money muling (27%).
However, 30% of parents with children under the age of eight are not translating these financial conversations into the digital world of gaming. Indeed, more than half (56%) don’t feel that their children understand that their in-game purchases are made using real money.
Research also shows that one in five parents haven’t spoken to their children about money management in the last year. Even though 71% of under-eights own a tablet, and 39% own a games console such as a PlayStation or Nintendo, 30% of this age group have not been spoken to about digital money management specifically by their parents in the last year.
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 - even if V-bucks can’t be used on the High St.
“Whether it’s understanding the financial skills their child might need guidance on when dodging creepers in Minecraft or how much 10,000,000 gold coins is in sterling, managing money when gaming can be confusing for children and adults alike. That’s why we’ve developed guidance and tools to support parents in helping their children ‘get money’ -- building valuable money management skills that will help them thrive in the virtual and real world now and in the future.”
Sarah Porretta, CEO at Young Enterprise said:
“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 practice 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.”
Indeed, over half (57%) of primary school teachers also have concerns about how and if financial education is being delivered in their schools. This highlights how important it is for parents to talk to their children about money from an early age.
For parents who may not know where to start, HSBC UK and Young Enterprise have developed guidance for parents to help their child build healthy money habits and avoid financial risks that could be lurking in games, just like the creepers in Minecraft or piranha plants in Super Mario Party Jamboree.
Resources available now and where to find them:
HSBC Smart Gaming Hub: Includes tips, tools and animated videos to help young people build digital money management skills and stay safe when gaming.
Money Heroes is an award-winning free programme from Young Enterprise, supported by HSBC UK, helping children working at a learning age of 3 - 11 learn about money both at school and at home, supporting educators and parents with a range of high-quality, fun and engaging resources.