NSW kids splurge more cash on online games than other Australians, new data reveals

NSW parents are calling for more help to stop kids splurging their cash on online games as new data reveals the state fares the worst when it comes to the habit. Find out just how much they’re spending.

With a single click of a nine-year-old finger, Benjamin Ryan almost spent his family’s entire weekly food budget of $100 on an iPhone game he spent all of 10 minutes on.

In a time of surging living costs, booming inflation and lagging wage rises, his father Brad felt the sting.

The Concord West family is one of many across NSW struggling with growing online gaming bills racked up by children as young as eight, as new statistics reveal they are spending more money on their digital playgrounds than anyone in the country.

NSW kids have spent an average of $197 on online games since they started using iPads or iPhones, roughly $20 more than national average, the YouGov research commissioned by money app Kit found.

The study of 2000 parents revealed 77 per cent of those in NSW were concerned about the influence of online games on their children’s buying behaviour, while almost three in five reported their kids spending money without their knowledge or permission.

Brad Ryan has been teaching his kids Benjamin (9, left) and Madeleine (6, right) about the value of money

Mr Ryan had struggled with his son’s love for the iPad game called Roblox, where avatars use real-world money to rent and furnish their homes as well as buy outfits. Players who don’t buy upgrades can be mocked by other players and pressured into spending more.

“My son sometimes racks though $100 in a couple of weeks on that game,” he said.

“We had our credit card details on there without realising and he accidentally spent $50. We’ve taken them off now but sometimes we let him buy a $1 game and we forget about the details and then he’ll go and spend $60 and there aren’t any warnings asking us to approve payments.

“And then there are the hidden costs that aren’t explained upfront. It happens on the PlayStation 5 too.”

His six-year-old daughter Madeleine had recently been exposed to online games too, and Mr Ryan found it difficult to explain the value of money to her at such a tender age.

Sandra Silfani is finding it more difficult to stop her sons Michael (9, right) and Ethan (8, left) from spending money on games like their friends

Mr Ryan said often his kids made purchases accidentally, but it didn’t make the dent in the bank account any easier to stomach.

“They’re are getting used to us saying no,” he said. “They don’t like the answer but we can’t afford them buying games that they sometimes only look at for five minutes.”

One eight-year-old boy in Kingsford, in Sydney’s east, had spent a huge $800 on in-app purchases in just two months. His mother chose to stay anonymous because she did not want her son to be bullied over his serious gaming addiction.

“I took my credit card details off but one time he stole the card from my purse,” she said.

“These games are really dangerous. They teach kids about adult things like gambling at such a young age.”

In an attempt to avoid her children forming that addiction, South Strathfield mother Sandra Silfani said she does not let her eight and nine year olds use real money for any games.

“We don’t let them have iPhones, we download all the apps ourselves on their iPads and we have passwords making sure they can’t get into them,” she said.

But she said she felt it “was getting hard” to stop them bypassing the safeguards she’d put in place, due to their friends becoming obsessed with online gaming.

“We’re trying to set the rules early, but it’s getting tough,” she said. “They need to understand that money is not endless, that the $5 they want to spend in a game could pay for a loaf of bread for the week.”

While setting passwords and blocking credit card details on devices can help, psychologist Jono Nicholas said it was only one part of the solution to the constant enticements children face in today’s increasingly digital world.

“For our kids, understanding how money works, how you need to earn and save to get the things you want are fundamental concepts to them having a successful adulthood,” he said.

“In this generation, money is less physical. So the concrete things a kid needs to understand how it works are not there.”

Many games entice kids for rewards using real-life money. Picture: Russell Millard

Mr Nicholas had worked on initiatives that teach parents how to speak with their children about money, including advising the development of the new CommBank supported Money app, Kit. Through the app, parents can set up customisable controls such as spend limits, merchant blocks and card and pin protection.

When it came to helping children understand the value of money, Mr Nicholas said it was important parents speak often with their kids about the topic.

“It’s easy to dismiss requests like buying the new Fortnite season, but as a parent the first step is being interested in what their motivations are and what sort of enticements they’re exposed to,” he said.

“Secondly it’s about how to limit the impulse buying, whether by two-factor authentication or other ways, then you need to explain it’s okay for them to accidentally purchase things because mistakes happen but they need to tell you straight away.”

NSW parents are more worried about their kids’ money and gaming habits than others in Australia

Asked whether he felt all the responsibility should fall on parents or whether there should be stronger regulations in the online gaming industry, Mr Nicholas said:

“Would I prefer they weren’t there? Absolutely. But it’s a reality of the world they will grow up in, whether it be $10 off if you sign up to a delivery system or a free membership.

“Kids are increasingly growing up in a cashless world with sophisticated enticements, so part of it is having conversations with children and teaching them about the way that gambling engages them.”

Ultimately, Mr Nicholas said every parent had to make a decision around the developmental capacity of their children and the right level of exposure and risk”.