Beware of these Christmas shopping traps for children

Online fraud is just one of the fresh dangers facing the new generation of shoppers. Here’s what parents need to know.

Children today face more shopping traps than their parents and grandparents ever did, thanks to the rapid growth of online payments.

Whether it’s an advertising avalanche, sneaky scammers or micropayments piling up, parents are being urged to help their teens, tweens and younger kids spend wisely as the busiest shopping month of the year begins.

Financial technology company Revolut Australia’s CEO, Matt Baxby, says online advertising delivers a big lesson.

“They’ll be advertised to based directly on what they buy online, or what they’ve been looking at,” he says.

Matt Baxby, the CEO Revolut Australia, suggests helping children search for a better price.

“When doing any kind of shopping, parents should have their children ask themselves: ‘do I really need this?’ Asking this simple question will build a long-term habit.”

Baxby says children should learn that the first offer isn’t always the best offer.

“Kids can get excited the first time they see something, so much so that they may want to buy it right away,” he says.

“The beauty of online shopping is that there’s a vast array of retailers all at your fingertips. Parents should challenge their kids to see if they can find the same item for a better price.”

Children should be shown how to spot scam websites and ads, and treat their personal details like cash.

“Social media ads are one of the many ways scammers will try to get to shoppers, including teens. Sometimes they spoof well-known brands so that they look legitimate.

“Get kids in the habit of taking a second to consider if they really trust the site with their information.”

MBA Financial Strategists director Darren James says the fear of missing out puts pressure on young people to buy quickly, and cashless transactions make it easier to overspend than handing over notes and coins.

Financial lessons learned at a young age create money-savvy teenagers and young adults.

“You have to be a lot more disciplined now to manage your money and not overspend,” he says.

James says small online purchases within apps can add up quickly. “It’s the smaller things that don’t get as much consideration, and that potentially does a bit more damage,” he says.

Young people should have financial goals, just like their parents. “If you don’t have a goal you will spend every bit of money that comes through your door,” James says.

He says a positive side of the internet is the growing range of tools that use tech to make financial literacy fun.

“There’s a lot of good apps to help people save, budget and invest.”

@keanemoney