How to Stop Your Children From Overspending Money Online


There are numerous applications, blogs, and online games explicitly aimed at children. Children are being enticed to spend money by irresponsible skinner box techniques as micro-transactions become more prevalent.

You’ll have to admit that spending isn’t always a bad thing when teaching your kids about money. People, for example, must spend money on food. Keeping your children from spending too much money, on the other hand, can be difficult, and many parents will benefit from a few pointers to help them keep on track.


Teach Your Children About The Value Of Money:

Children are continually exposed to material things and financial transactions. They can grow up without a clear understanding of the value of money and how to use it if they do not understand the value of money.

The following are age-appropriate suggestions for teaching your child practical money management skills:

Ages 2 to 4 :

Introduce your child to coins by assisting him or her in sorting them by kind and demonstrating the principle of equivalency (e.g., five pennies equal a nickel, two nickels equal a dime). Give them a piggy bank to see the money grow and know it will be there when they need it.

Ages 5 to 7 :

Allow your child to handle money regularly as he or she reaches school age to become familiar with cash. You may want to, depending on your circumstances, start keeping a small allowance. If you’re going to have a budget, make sure you stick to it and set some ground rules.

Ages 8 to 10:

Your child will probably become interested in where the money comes from and where it goes as he or she grows older. Explain how you make money and how your child would be able to do so as well. Explain how much your family’s main monthly expenses, such as lodging, food, and transportation, cost.

Ages 11 to 13:

Peers also force preteens to keep up with the latest and greatest. Make the most of this chance to be a positive role model for your child by showing him or her how to make sound financial decisions. Share any previous spending blunders you’ve made and what you’ve learned from them.

When your child grows older, consider increasing his or her allowance and assisting him or her in developing a spending plan. Introduce the idea of long-term investing and saving.

Teen Years:

High school is an excellent opportunity for your child to bring what you’ve taught him or her over the years into motion.

Take your teen to the bank and have him or her open a checking and savings account in their name. Consider giving your child a prepaid or bank-secured credit card to help him or her develop a credit history and good credit habits while still living with you.

a Parent handing a dollar bill to his child

Simple Ways to Prevent Your Children from Spending Too Much Money:

Controlling how much they spend is a significant objective of educating children to be financially responsible. Budgeting becomes much easier if they can do this, and the chance of going into debt is significantly reduced. As your children improve this ability, the following strategies will assist them.


Make Sure The 24-Hour Rule is Followed:

Kids always want to buy at the moment due to their still-developing impulse control and rationalization abilities. They lose interest after they accept. They’ll have time to consider whether they want what they’re eyeing if you persuade them to wait at least 24 hours before spending on an item costing more than x dollars.

The chances are high that they’ll have changed their minds by the end of the day, and if they haven’t, they’ll be more likely to do what they spend their money on.


The Objective is to Have Money That is Well Managed:

Your child may become engrossed in the excitement of saving, spending, and investing while learning about money, but it is your job as a parent to help him, or her remain focused on the main objective – to handle their money well. Even if investments don’t work well, children will benefit from good money management if their parents encourage them.


Set Clear Objectives For Your Children:

If children do not have a clear idea of where their money can go, they are far more likely to throw it away. Set a target for them to strive toward, whether it’s purchasing the next video game or stock. You will keep your child motivated by giving them a reward, such as matching funds saved, and by reviewing their progress and rewarding them for changes regularly.


Encourage The Kids To Go Thrifting:

While there are occasions when new is preferable (underwear comes to mind), used items are often sufficient. If your child is willing to go this path, he will save money on anything from books to electronics. You may find out that purchasing used also helps consumers buy more goods or save more money than purchasing fresh.


Make Them Accountable For Their Finances:

Teenagers must consider the importance of money and that it is a finite resource. Allowing them to administer their finances teaches them two critical lessons:

  • Don’t go overboard with your spending.
  • Stay away from the pitfalls of unanticipated costs.


Help Them in Budgeting:

Talking to your children about your financial obligations and budgeting is one way to help them take responsibility for their finances. Discuss your taxes and what you need to prepare for with them. Bills, shopping, and everything else you spend on them, such as school lunches or trips, are included. Assist them in budgeting for one week under supervision.

At the end of the week, have a discussion. Ask the following questions to your child :

  • What were their thoughts on it?
  • What did they find challenging?
  • Was it more complicated than they anticipated?
  • What did they discover?


Budgeting options for kids:

Here are several suggestions to assist them in developing the habit of budgeting:

Assist them in finding a free budgeting app:

Many of these apps make budgeting enjoyable by keeping track of goals and progress. Gamification, or the application of gaming elements to real-world activities, can be highly effective.

Set up a savings challenge for them:

It should be linked to something they want, and they will need to budget to succeed.

Give Them Three Boxes:

When they get their weekly allowance or pocket money, they can divide it into three categories: needs (for example, school lunch), wants (for example, driving lessons), and a rainy day fund. (For more information on unexpected costs, see the section below titled “Consequences.”)


Use Technology-Based Parental Control App:

This Parental control app allows you to keep track of where your child spends money, whether it’s on individual apps, game subscriptions, or online shopping, their browsing history, phone call  and every digital movement.


Teach Them About Money’s Various Uses:

As children grow older, parents may begin to educate them about the various uses of money:

  • Spend
  • Save
  • Invest

Show them examples of how they can use money in various ways. Since you spend and save regularly, the first two buckets are easy, but saving can be more difficult. A simple stock simulation (there are plenty of free options online) might be a fun activity to do together. If they have a job, you can assist them in opening a Roth IRA and investing it.


Create a Savings Habit:

Spending will almost certainly be a part of your child’s first experiences with money. They notice you using it to make purchases, even items for them. As a result, it’s essential to instill in them the idea that money isn’t just for spending—also, it’s for saving.

Saving money isn’t just a good habit to develop. Give your children a piggy bank or a savings jar where they can deposit coins or cash to help them develop the habit of saving. Also inspire your children  using short messages such as:

  • Saving is a great habit to have.
  • I enjoy saving money.
  • It feels fantastic to be able to save money.


Frequently Asked Questions Section:


Should parents financially support their children?

Your financial assistance could help your child gain self-sufficiency and independence. However, it can prevent them from learning important life lessons, delaying their ability to become self-sufficient.


How do I explain the meaning of money to my child?

  • To save, use a clear jar.
  • Set an example for others.
  • Demonstrate to them that things aren’t free.
  • Demonstrate the opportunity cost.
  • Instead of allowances, offer commissions.
  • Avoid making impulse purchases.
  • Emphasize the significance of donation.
  • Teach them to be happy.



Teaching your children about money is an integral part of parenting, but it will take time and effort on your part, particularly if you have financial problems to deal with. Keep in mind, though, that you will teach your children from your mistakes. Allow them to benefit from the errors by allowing them to learn from them.

Provide your children with guidelines about how to manage money safely and effectively. This will assist them in developing vital life skills such as saving and budgeting. Investing the time now to teach them about money management will pay off in the long run.


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