According to HSBC, of the 15.6 million tech devices expected to land under Christmas trees this year, almost three-quarters (71%) will be used for gaming.
More than half (52%) of parents report being worried their child is unaware they are spending real money with in-game purchases, with charges to parents’ cards typically reaching £50.
What is an in-app purchase?
In gaming, an in-app purchase is a service or additional content that can be bought for real money when playing a game. Examples of in-app purchases include tools that give a player more power in a game, a key to unlock more app features and virtual currency that can be used for purchases.
According to HSBC, 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.
More than a quarter (28%) of parents are unaware that payment details can be saved on digital game systems and technology, although 93% were aware that games have features that require payments of real money to play.
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The study found that more than half (56%) don’t feel that their children understand that their in-game purchases are made using real money.
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 street.
“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.”
How to keep an eye on in-app payments
Many devices have settings that require parental approval for in-game purchases. Parents should ensure these are turned on so they can better control what purchases are made and when.
For Apple accounts, enter ‘Family’ under the System Settings and turn on the ‘Ask to Buy’ function under the relevant family member’s profile.
For Google Play accounts, open the Family Link app, tap your Content Restrictions under your child’s profile. Under Google Play, tap ‘Require Approval for Purchases’ and download approvals, selecting this for in-app purchases only.
For other accounts or devices, refer to guidance available on the relevant manufacturer’s website.
The HSBC Smart Gaming Hub includes tips, tools and animated videos to help young people build digital money management skills and stay safe when gaming.
Related: Schoolchildren given lesson on avoiding racking up huge gaming costs
