The Hidden Costs of In-App Purchases for Kids

Children are growing up in a world where digital entertainment is just a tap away. Whether it’s a colourful educational app or an online game packed with cute characters, screens have become go-to babysitters, reward tools, and boredom busters for modern parents. But what many families don’t realise until it’s too late is how those innocent-looking apps can lead to surprising and sometimes hefty in-app expenses.

If you’ve ever opened your credit card statement and gasped at charges from app stores, you’re not alone. Behind every glittery power-up and virtual coin is a business model designed to nudge, tempt, and encourage spending. And when kids are left to explore on their own, they often don’t grasp the value of money – or even realise they’re spending real funds.

Let’s explore the reality of kids’ in-app purchases, their hidden financial impact, and how you can regain control without cutting off fun completely.

What are in-app purchases?

In-app purchases are additional items or features you can buy within an app. They’re especially common in free-to-play games, where the base version costs nothing, but added perks require payment.

These include:

• Cosmetic items (e.g., skins, outfits, character upgrades)
• Game currency (e.g., gems, coins, tokens)
• New levels or tools (e.g., unlocking puzzles or gear)
• Subscription upgrades (e.g., ad-free experiences, bonus content)

What’s tricky is how seamlessly these purchases are embedded in gameplay. A prompt to buy more lives or speed up progress can look like part of the game narrative, and many kids will tap without thinking twice.

Why kids are especially vulnerable

Children, especially under 12, are still developing impulse control and financial understanding. They see digital items as instant rewards, not monetary transactions.

Common risk factors include:

• Bright, gamified design nudging rapid choices
• Pop-ups that simulate urgency (“Offer ends in 5 minutes!”)
• Easy payment access if cards are linked to devices
• Peer pressure in online communities or multiplayer games
• Lack of awareness about the real-world cost of digital items

One parent may think they’re approving a one-off game download, but their child might quickly spend £50 or more on it without meaning harm. It’s not about bad behaviour—it’s about blurred lines between play and purchase.

The financial impact of unchecked spending

The average UK family spends hundreds of pounds each year on digital games and apps—sometimes unknowingly. In a 2023 survey by Ofcom, 21% of parents reported surprise charges linked to their children’s in-app purchases.

These hidden costs can:

• Disrupt your monthly family budget
• Lead to overdraft or credit card fees
• Create tension between parents and kids
• Encourage addictive app use when rewards depend on spending

Over time, digital purchases can rival real-world spending on toys or outings. That makes transparency and control essential for financial well-being.

How to block or limit in-app purchases

The good news is that most devices come with built-in controls to prevent unapproved spending.

Steps you can take:

• Set up parental controls in your phone/tablet settings
• Require password or biometric confirmation for all purchases
• Use family sharing tools that require approval from a parent account
• Disable in-app purchases entirely if possible
• Avoid linking payment methods on shared devices

On iOS, Screen Time settings allow you to limit app usage and purchases. Android offers similar controls through Family Link. Familiarising yourself with these settings can make all the difference.

If you’re trying to tighten your wider tech budget, explore strategies for managing internet and phone plans on a budget for a more cost-conscious digital household.

Educating kids about digital money

Blocking access is helpful, but so is education. The more your child understands digital purchases, the more mindful they’ll become.

Ways to start money conversations:

• Show your child your app store receipt
• Discuss how many coins or boosters cost in real money
• Use pocket money to teach them to budget digital vs. real items
• Create goals: e.g., saving for one monthly app treat vs. impulse spending
• Explore apps with child-friendly money features like GoHenry

Helping kids connect digital spending with real consequences lays the groundwork for future financial literacy.

Choosing kid-friendly, budget-safe apps

Some apps are designed with better ethics in mind, offering full content for a one-time fee or focusing on learning instead of gimmicks.

Tips for choosing safe apps:

• Look for age-appropriate, ad-free, one-off payment options
• Check reviews for mention of aggressive upselling or paywalls
• Choose educational apps from trusted brands
• Preview apps before installing them for your child

If you’re keen to save more across all tech-related spending, read about cutting utility bills as a family, including digital and entertainment services.

Monitoring purchases and setting app boundaries

Transparency is key. Set expectations with your kids around screen time and app spending.

Consider creating a simple family policy like:

• No purchases without discussion
• Maximum app spend limit per month
• Only using gift cards, not credit cards, for app stores
• Weekly screen-free days to balance habits

Monitoring apps also notify parents when purchases are attempted or completed. Tools like Bark, Qustodio, or Apple’s Family Sharing suite are helpful for staying informed.

Conclusion: Empower your child without draining your budget

Kids and tech are inseparable – and in moderation, apps and games can spark creativity, learning, and fun. But unchecked in-app spending can quietly disrupt your household finances.

By controlling app permissions, educating your children, and choosing ethically designed software, you’ll foster better digital habits without removing the joy of tech. You’re not just preventing surprise charges—you’re equipping your child with lifelong skills for mindful spending.

The goal isn’t to ban everything. It’s to build awareness, put safeguards in place, and keep digital fun aligned with your real-world values. A few settings and conversations today can prevent big headaches tomorrow.