Kids and Online Spending: How to Prevent Surprise Charges

Many games and apps are free to download, but that doesn’t mean they’re free to play. Inside them, children are often encouraged to buy coins, gems, extra lives, special characters, outfits and upgrades. These in-app purchases can seem small individually, but without safeguards, kids can rack up surprise charges that add up to hundreds of dollars before parents notice.

The good news is that a few simple steps can prevent most surprise charges and teach kids valuable lessons about money in a digital world.

Why online spending is tricky for kids

Digital purchases feel different from spending physical cash. When kids tap a button to buy virtual currency, the connection to real money can feel abstract. Many games use their own currencies, such as coins or gems, which make it even harder to understand how much something actually costs.

Games and apps are often designed to encourage spending. They may offer limited-time deals, reward streaks, mystery boxes with random prizes or progress that’s much faster with purchases. These techniques can be persuasive for adults, let alone children.

Turn on parental controls

Most phones, tablets, game consoles, computers and app stores offer parental controls that let you manage purchases. You can typically require a password or your approval before any purchase is made, set spending limits, restrict purchases entirely and control which apps and games kids can download.

Many platforms offer family accounts that let parents approve purchase requests from children’s devices. When your child tries to buy something, you receive a notification and can approve or decline it.

Take a few minutes to set up parental controls on every device your child uses, including game consoles, tablets, phones and computers. Check settings periodically, especially after software updates or when you get a new device.

Remove saved payment methods

Don’t leave credit cards or other payment methods saved on kids’ devices or accounts. Saved payment information makes it easy for children to make purchases with a single tap, sometimes without fully understanding what they’re doing.

Instead, consider using gift cards or a prepaid balance funded by allowance. This puts a clear limit on how much can be spent and connects purchases to money your child has earned or received. When the balance runs out, spending stops.

Teach digital money skills

Online spending is an opportunity to teach kids important money lessons that will serve them as they grow up in an increasingly digital world.

Explain that coins, gems and other in-game currencies cost real money. Help kids translate virtual prices into actual dollars, so they understand the true cost of what they’re buying. Comparing a purchase to something tangible, such as the cost of a toy or a favorite snack, can make it concrete.

Talk about how games are designed to encourage spending. Older kids can learn to recognize tactics like limited-time offers, countdown timers and random prize boxes. Understanding these techniques helps them make more thoughtful choices.

Let kids use their own allowance for purchases so they feel the cost. When children spend their own money, they’re more likely to think carefully about whether a purchase is worth it. Experiencing regret over a purchase that wasn’t worthwhile is a valuable lesson best learned with small amounts.

Encourage waiting before buying. A simple rule, such as waiting a day before making any in-app purchase, can help kids avoid impulse buys.

If unexpected charges happen

If you discover charges your child made without permission, contact the app store or platform right away to request a refund. Many platforms have processes for reviewing refund requests, especially for unauthorized purchases by children, though policies vary. Act quickly, since some platforms have time limits.

Review your account’s purchase history to identify all unauthorized charges. If you can’t resolve the issue with the platform, you may be able to dispute the charges with your credit card company.

In past cases, the Federal Trade Commission has taken action against companies over unauthorized in-app charges made by children, resulting in refunds for affected parents. You can report concerns to the FTC at ReportFraud.ftc.gov.

Watch for scams

Online games and apps can also expose kids to scams. Teach kids never to share passwords, account information or personal details, such as their full name, address, school or phone number, with anyone online.

Warn kids to be wary of offers for free in-game currency, items or upgrades, which are often scams designed to steal account information or install harmful software. Explain that if something sounds too good to be true, it probably is.

Encourage kids to come to you if they encounter something suspicious or feel pressured online, without fear of getting in trouble. Open communication helps keep them safe.

Monitor and stay involved

Check your account statements and app store purchase histories regularly, so you can catch unexpected charges quickly. Stay involved in the games and apps your kids use, asking about what they enjoy and how purchases work.

With the right safeguards and ongoing conversations, you can help your kids enjoy games and apps while learning to spend wisely in a digital world.