It Wasn't a Scammer. It Was Worse. The Impact of Kid's In-App Game Purchases.

You just discovered an unapproved $7,000 charge on your Visa. It wasn’t a scam. It was—are you sitting down?—your kid’s in-app game purchases. Just like a scam charge, it was unapproved. But unlike a scam, this charge must be paid.

A client recently discovered as much when she had the nauseating realization that her 11-year-old son had run up $7,000 in online Roblox purchases. In one single month. And she soon discovered there was no remedy—grounding him until his wedding day may have been cathartic, but it didn’t get the charge cancelled.

An in-app purchase is a transaction made inside an online game, where you’re charged real money for virtual items or currency that can only be used within the game. “Robux,” Roblox’s virtual currency, is sold in bundles ranging from 400R for $4.99USD 10,000R for $99.99USD, and can be used to buy avatar cosmetics, game passes, and access to premium in-game experiences.

My client confided this story in me as her financial advisor because of the significant financial implications of an unexpected $7,000 bill. But, just like the clients who last month shared scams they’d fallen for, she wasn’t telling anyone else. She was way too embarrassed. Not even her own son knew the full extent of it. She told him he’d run up charges, but couldn’t bear to reveal the total because the reality is: although he heart-breakingly offered, all his Bar Mitzvah gifts combined would not cover it.

As a financial advisor, I am in a special position to receive these painful stories, which otherwise aren’t being widely shared. I hope that by sharing them here (with permission, of course) I can help others avoid the same mistakes or scams, and feel less ashamed of their own financial missteps. The reality is that there should not be anything embarrassing or shameful about falling for a scam or making an occasional financial mistake. This is life after all. And sht happens.

A future Ms. Money will take a deeper look at the in-app purchase and gaming industry, because kids aren’t the only ones spending exorbitant sums in-app. I’m personally interested in exploring how rising spending on online games affects personal finances. Personal financial behavior more broadly? The wider economy?

Until then—a bit more about unauthorized in-app purchases by your offspring: how it happens, why you can’t undo the charges, and how to prevent it.

How can your child purchase games without your permission?

Most app stores—Apple, Google, and others—allow purchases to be made with a single tap once a payment method is saved to the account. If your child has access to a device that’s already linked to your credit card, they may not need a password at all, particularly if one-click purchasing is enabled or if they’ve watched you enter your password enough times to memorize it. Children aren’t trying to steal—they often genuinely don’t understand that virtual currency costs real money, or that “just one more” adds up.

Why can’t you contest the charge?

Unlike fraudulent charges made by a stranger, in-app purchases are considered authorized transactions because they originated from your device and your account. Credit card companies and app stores classify them as legitimate, even if you had no idea they were happening. Apple and Google both have dispute processes, and you may be able to recover some charges—especially if your child is young and the purchases were clearly unintentional—but there is no guarantee, and full refunds are rarely granted.

What do you do to prevent it from happening in your family?

The most effective step is to require a password or biometric confirmation for every purchase—this setting exists on both Apple and Android devices and takes less than a minute to enable. You can also set up parental controls that require your approval before any transaction goes through, or remove your payment method from shared devices entirely. Beyond the technical fix, have a frank, age-appropriate conversation with your kids about what in-app purchases actually cost—many children have no frame of reference for what $1,000 means, but they do understand that it’s more than their birthday money, their allowance, and their piggy bank combined.

Ms. Money is written by Marisa Rothstein, JD, CFP(t), AEP, and Lead Financial Advisor at Siena Private Wealth, A Member of Advisory Services Network, LLC.

Nothing contained in this article should be construed as investment, legal or tax advice. Consult your tax or legal advisor regarding your situation. To learn more about Siena Private Wealth, visit: www.sienaprivate.com. All information contained herein is derived from sources deemed to be reliable but cannot be guaranteed. All views/opinions expressed in this newsletter are solely those of the author and do not reflect the views/opinions held by Advisory Services Network, LLC.