Children’s phone costs: dial up savings with these experts’ tips

Today’s kids chew up a bigger slice of household cash through phone and data costs, but there are ways to dial down the pain.

Anthony KeanePersonal finance writer

@keanemoney

3 min read

March 6, 2024 - 2:56PM

The Australian Business Network

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Technology’s transformation of Australians’ lives through smartphones, tablets and the internet has also transformed household budgets in an expensive way.

About half of Australian children have their first mobile phones between age 10 and 12, research has found, while some are given devices before age six or seven.

Phones today can cost at least $1000, while tablets – another popular tech tool for children including toddlers – can be even more, which when added to the cost of mobile and data plans can strip families of hundreds of dollars each month.

MyBudget founder and director Tammy Barton says technological progress and social pressures have increased the costs for parents significantly in the past few years.

“More children have their own devices at a younger and younger age,” she says.

“This leads to an array of other associated costs, now placing a constant strain on household finances. We’re seeing costs such as mobile data plans, apps, games and streaming creep into the budgets.”

Barton says there is constant pressure on parents to upgrade their children’s devices, adding to the cost of repairs and accessories.

MONEY-SAVING TIPS

However, there are a few simple strategies that can help parents reduce the costs of ballooning bills.

Telco comparison website Whistleout.com.au suggests parents buy prepaid mobile plans for peace of mind, seek no-contract plans that allow them to cap data usage, and opt for plans with unlimited talk and text.

It says there is a huge variety in phone costs and plan costs, and families should only spend money on what they need – and not the newest and shiniest option.

Addicted to screens: the cost of owning mobile phones has been rising. Picture: iStock

Whistleout spokesman Alex Choros says many mobile handsets have become more expensive in the past few years, while phone plan costs have climbed sharply too.

Choros says buying a new $1500 smartphone for a child is “overkill”.

“Apple still keeps older phones around, while Samsung’s Galaxy A series is really good,” he says.

“The other option is going for refurbished phones … a lot of sellers in Australia do refurbished.”

Choros suggests buying a handset outright if possible then examining the offerings of smaller providers too, with some telcos charging as little as $10 a month for an introductory period.

He says the base cost of a phone plan with the big three – Telstra, Optus and Vodafone – is much more than it was a few years ago.

DATA CHECK

Be careful with some offerings that deliver all the data usage upfront for up to a year.

“Your kid has access to all that data in one go so they have to learn to manage their own usage,” Choros says.

Data sharing among family members is available among bigger providers, but can be expensive – potentially $60 per person per month at Telstra.

When it comes to data, don’t get too much and only pay for what you are using.

“If you are using 20GB each month, why are you paying for 100GB?” Choros says.

MyBudget’s Barton says parents should review their children’s plans and switch for a better deal if necessary, as this can “reduce the monthly fee significantly”.

“Invest in accessories that protect their device,” she says.

“Durable cases and screen protectors reduce the likelihood they damage the device and reduce the cost of future repairs.

“Data is expensive so only pay for what you need. Set usage limits like limiting screen time to control how long they spend but also reduce the wear and tear of the device.”