So your kid spent RM200 in a video game without your knowledge? Why experts are calling for children in Malaysia to gear up with financial literacy in the digital age. — Unsplash
Just like any parent today, a father (who only wants to be known as Wilson) let his children use his tablet to play games and watch videos.
He recalls how, back in 2022, they asked to download a gaming app. He thought it would be more convenient at the time if he gave them his Apple ID password to complete the download.
“I saw that the game was free and felt that it’s okay to let the kids download it on their own,” he says in an interview with LifestyleTech.
What Wilson didn’t realise at the time was that once the password was shared and saved on the device, his two children (aged six and three at the time) could continue downloading apps and making in-app purchases without needing his approval each time.
That small act of convenience ended up costing him RM200, when he later spotted the unexpected charge on his credit card bill.
“At first, I thought that I was hacked and sent a report to dispute the charges. Later, I was informed that the charge was for Robux (an in-game currency for the platform Roblox where players can purchase costumes, items or power-ups). That’s when I realised the children have been spending for Roblox on their own,” he says.
Wilson adds that his bank cancelled the charges after he disputed them, but soon after, his children’s Roblox account was blocked. It was an outcome he believes was linked to the platform flagging the reversed transactions as suspicious.
“They were upset about losing all their progress and items but I hope they learned their lesson,” Wilson says, adding that since then, he no longer has a card linked to his app store account.
Value for money
Wilson’s story of his children spending real money on digital purchases without his knowledge or prior approval is one many parents can relate to.
In March, a reader wrote to The Guardian in the United Kingdom about her experience of finding out that her eight-year-old daughter had racked up £8,500 (RM48,181) on the Apple App Store in just 90 days.
The reader claims that she had no idea that her debit card had been linked to the daughter’s account, adding that the child didn’t know that real money was being spent.
Lim says teaching children about financial literacy in the digital era helps them to understand the difference between spending in the ‘virtual’ and the ‘real’. — JOANNE LIM
“When money turns into Robux or gems, children stop seeing it as money,” University of Nottingham Malaysia professor in digital media and communications Dr Joanne Lim says to LifestyleTech.
Lim, who is also the dean at the Faculty of Arts and Social Sciences, adds that a child who spends RM200 on Robux might see it only as new outfits for their avatar and not the equivalent of a week’s groceries or one month’s utility bill.
“The trouble is they don’t connect that to the ringgit their parents work hard to earn. It trains them to think of money as something abstract and endless, which is where the problem starts,” she adds.
Prior to tablets and smartphones, children were more likely to start spending money only when they went to school, where they had to pay for their own food.
However, the rise of online games and in-app purchases means children are spending money long before they even handle cash, prompting experts to stress the need for financial literacy from a young age.
Ng Pui Yee, founder of financial literacy platform Little Tauke, says she has noticed a difference in the way Gen Alpha or those born from 2010 onwards view money. While the older generation may think of money as something scarce or hard-earned, Gen Alpha would assume that money feels almost unlimited as they are not the ones earning it.
“They’re growing up in a time where many things are instantly accessible, and some parents – especially those feeling guilty about not spending enough time with their kids – make up for it with gifts and treats,” says Ng.
Peer pressure amplified online
She adds that Gen Alpha children are also influenced by content on social media, where success means being able to show off luxury items or fancy lifestyles.
Ng says starting young gives children more time to build good money habits. — NG PUI YEE
“Many kids develop what I call a ‘have-to-be’ mindset, feeling the pressure to look or live a certain way to feel worthy. That’s why early financial education is so important now so they can form a healthy relationship with money before these external influences shape them too strongly,” Ng says, recommending that parents start teaching children about money from as early as four years old.
Ng believes that at that age, children would already recognise that money, credit cards and even phones can be used to buy the things they want. This awareness, however, doesn’t always come with an understanding of limits or consequences.
Lim agrees that children also want instant gratification as they strive to fit in with friends by having the latest skins or items in games.
“I’ve seen teenagers compare digital outfits the same way earlier generations compared branded sneakers. Of course, digital platforms know this and amplify it with bright visuals, flashing offers, and ‘buy now’ buttons.
“At the same time, kids don’t yet have the self-control to say no, so it’s easy for them to lose track and spend more than they should,” she adds.
Teaching kids financial literacy
According to Mastercard research on children and financial literacy released in June, 97% of the Gen Alpha children surveyed in Malaysia already have access to a financial account – these include accounts in their own name and accounts owned by an adult such as their parents. It also reveals that 58% of these children have digital wallets, investment accounts (49%) and even credit cards (48%).
“Gen Alpha is growing up in a world where money is more likely to be tapped than counted, and where financial literacy begins not with a piggy bank, but with a smartphone,” says Mastercard Asia Pacific executive vice president for core payments Sandeep Malhotra in a statement.
Lim says teaching children about financial literacy in the digital era helps them to understand the difference between spending in the ‘virtual’ and the ‘real’. “It’s not just saving and spending, it’s knowing how digital wallets, online games, and even scams operate,” she says.
Parents can start from primary level, she says, where they can start simple conversations about tradeoffs and managing finite resources. For example, she says parents should be able to teach their children that if they decide to spend all their allowance on Robux, they won’t be able to purchase another item like a toy later.
“By the time children reach their teens, the conversation should include online scams, subscriptions, and even safe ways of experimenting with digital savings or investments,” Lim adds.
Lim says parents can start simple conversations about tradeoffs and managing finite resources with their children from primary school level. — Image by freepik
Ng says starting young gives children more time to build good money habits. However, based on her experience, Ng finds that a lot of parents don’t give children any money to manage because schools have gone cashless or they have concerns about misuse.
“But how will they learn if we don’t let them try? I like to encourage a ‘teach-as-you-go’ approach. Use everyday situations – like shopping, eating out, or planning a birthday – to spark money conversations.
“And yes, they’ll definitely make mistakes, but that’s the best way to learn. Better they make these small mistakes now than big ones later in life,” Ng adds.
Parents may want to consider using digital tools to help kids track and monitor their money effectively.
“However, education and setting boundaries are essential before allowing kids to use these tools. Parents can start by giving allowances via debit cards or e-wallets, but it’s important to set spending limits and teach kids to manage their expenses within their budget,” says Ng.
According to Mastercard Malaysia and Brunei country manager Beena Pothen, early access to financial tools can be both empowering and challenging.
“In Malaysia, 63% of consumers already prefer digital payments such as QR, Tap & Go or biometrics over cash, and 99% say they are likely to adopt emerging payment methods in the next year.
“Growing up in such an environment means digital natives are surrounded by tools that can build financial fluency much earlier than past generations, setting the stage for stronger financial confidence as adults,” she says, citing figures from the aforementioned survey.
When money feels ‘invisible’ through apps or QR payments, Beena says children may be prone to overspending, impulsive behaviour or seeing digital money as limitless. — BEENA POTHEN
But when money feels ‘invisible’ through apps or QR payments, Beena says children may be prone to overspending, impulsive behaviour or seeing digital money as limitless.
“That’s why it’s crucial that parents play an active role in guiding these early experiences,” she adds.
The tech solution
For immediate peace of mind, parents can also restrict or disable in-app purchases altogether.
On Apple devices (iPhone/iPad), this can be done by going to Settings and selecting Screen Time, then Content & Privacy Restrictions, then iTunes & App Store Purchases. At this point parents will have two options: they can either choose to block all in-app purchases by tapping on In-app Purchases and selecting “Don’t Allow”, or they can tap “Require Password” and choose “Always” so that each attempted transaction will require a password.
For Android devices, parents can require a password for all purchases through the Google Play Store app by tapping on the profile picture in the top right, then Payment and Subscriptions, then Purchase Verification. Once there, they should tap on Verification Frequency and select Always.
If parents don’t want the hassle of keying in their password for each transaction, another option is to manage each in-app purchase. Under Settings, select Family, then Manage family members. They can then tap on the child’s name and then Purchase approvals to set preferences.
However, Lim also believes that digital platforms have a role to play to safeguard children from unnecessary spending. For example, she explains that online gaming platforms often mirror gambling mechanics, using features such as loot boxes, mystery chests, limited-time offers and endless upgrades to entice players to stay engaged.
“That chance element keeps children spending repeatedly in hopes of winning something rare. They keep children hooked, knowing very well that kids don’t have the maturity to stop themselves.”
Lim feels it’s not enough for parents alone to monitor the children.
“Parents often get blamed, but the industry has built an ecosystem that thrives on children overspending. Accountability means clearer warnings, stricter age controls, and design that doesn’t deliberately exploit a child’s psychology,” Lim adds.
She wants to see policymakers step in to regulate games and apps that push children towards unhealthy spending patterns.
“Policymakers in countries like South Korea have already restricted certain gambling-style game mechanics for minors; Malaysia should be considering the same. And banks or e-wallet providers can design child-friendly products that teach responsibility rather than encourage consumption, such as junior e-wallets that give kids independence but with built-in limits,” Lim adds.
For Lim, the issue goes beyond money; she finds it far more troubling when children learn to hide their spending from their parents. She shares that there are cases of children feeling too embarrassed to admit that they secretly spent RM50 on in-game items just because they want to keep up with friends.
“Parents should treat these situations as conversation openers: ‘Why did you want that skin?’ or ‘How did it feel to buy that?’ The purchase is less important than the attitude being shaped,” she says.
She hopes that parents can see every purchase as a teaching moment instead of resorting to banning children from spending. Ultimately, she says it’s best to talk about choices and limits.
“If a child learns that spending money online is automatic, easy, and linked to social status, that’s a habit that can carry into adulthood,” she concludes.
