Survey Reveals Children's Unapproved Online Purchases Costing Families Hundreds

What's Happening?

A recent survey conducted by Talker Research and commissioned by Achieve has revealed that nearly one-in-three parents have discovered their children making online purchases without permission. The survey, which included 2,000 parents with children under 18, found that these unapproved shopping sprees cost families an average of $170, with some parents reporting expenses exceeding $300. The purchases range from video games and fashion items to more expensive electronics like computers and smartphones. Additionally, some children have even bought stocks and cryptocurrency. Despite these financial risks, many parents are not closely monitoring their children's spending, with 23% rarely or never checking their children's debit and credit card activity.

Why It's Important?

The findings highlight a significant issue in financial education among children, as 72% of parents believe their children do not fully understand the value of money. This lack of understanding is exacerbated by the digital nature of currency, which 44% of parents find harder to teach compared to physical money. The survey underscores the need for improved financial literacy and awareness among young people, as overspending can lead to long-term financial challenges. Parents are encouraged to develop strategies to teach their children about money management, which could prevent future financial mishaps and foster responsible spending habits.

What's Next?

Parents are advised to engage in conversations with their children about financial responsibility and consider implementing measures such as allowances and spending limits. The survey suggests that many parents would benefit from professional guidance, with 61% expressing a desire for financial experts to teach their children healthy spending habits. As digital transactions become increasingly prevalent, it is crucial for parents to adapt their approaches to financial education, ensuring their children are equipped to navigate the complexities of modern financial systems.