As children are now growing up in a world where money is mostly digital, cybersecurity has become a fundamental part of financial literacy. Unlike previous generations, their first experiences with money are not only piggy banks, but in-app purchases, gaming loot boxes, and prepaid cards connected to digital wallets. In Kaspersky’s “Digital Schoolbag: A Parent’s Guide for the School Year”, our experts share insights on how to teach kids to manage money responsibly and securely in the digital world.
Back-to-school season is not only about new books and uniforms, it’s also a crucial time to build healthy habits that will stay with children for life and help to avoid many problems. And real problems are not rare: 25% of parents in the META region participated in the “Growing Up Online” survey admitted that they lost money because of their children’s online behavior, while 16% of respondents stated that their child’s device was infected with a virus.
If kids aren’t aware of online risks, even strong financial literacy won’t protect them from phishing disguised as giveaways, fake in-game deals, sneaky subscription renewals, or identity theft. By integrating financial education with digital protection, parents can prepare their kids not only to manage money smartly, but also to defend themselves against the cyberthreats that come with it.
In a related context, Mr. Moataz Azar, CEO of Thakaa Jordan, said: “Internet safety is a key pillar of children’s physical, personal, social, psychological, and health well-being. Its importance is growing as the internet penetrates our children’s lives at younger ages. The risks of being online without providing sufficient awareness to children include fraud, exploitation, and impulsive, unplanned purchases. Today, children are dealing with money through digital environments from an early age. It is our duty as institutions to prepare them to be smart and responsible users, combining financial literacy with the ability to protect themselves digitally.”
For her part, Rasha Salib, a licensed clinical psychologist and a licensed marriage and family therapist, said: “Teaching children money management today is no longer limited to the piggy bank; it now includes the digital world with its opportunities and risks. Combine financial awareness with digital awareness: teach your children how to budget and how to protect their accounts and passwords. This way, you not only protect their money but also foster essential life skills such as discipline, responsibility, and self-awareness. From a psychological perspective, teaching a child to control their spending, pay attention to subscriptions, and protect their digital accounts not only develops financial skills but also enhances their executive functions like planning, organization, and self-control. These are fundamental life skills that will stay with them and positively impact other aspects of their personality and behavior. Furthermore, when parents engage with their children in monitoring subscriptions and understanding the risks of electronic fraud, it creates a healthy educational dialogue that builds trust between them and makes the child more aware of the boundaries of the virtual world. The goal here is not just to ‘prevent danger,’ but to foster an internal awareness in the child that helps them make sound decisions even in the absence of their parents.”
Here’s what Kaspersky experts recommend parents teach their kids about managing their money responsibly and securely:
1. Set clear spending limits
Helping children understand boundaries is the first step in building both financial discipline and digital awareness. Start by establishing a basic budget structure for your child’s typical expenses:
- School supplies
- Food or lunch money
- Sports or hobby-related purchases
- Entertainment (apps, games, subscriptions)
Rather than micromanaging every purchase, talk about percentages. For example: “70% is for school-related spending, 20% for entertainment and 10% for saving.” Use this opportunity to introduce digital money literacy: explain how in-app purchases, microtransactions, or hidden fees can drain their balance if they’re not careful.
2. Use secure payment methods
While giving children cash may seem simple, it comes with obvious downsides, it can be lost, stolen, or spent without any trace. A safer and more educational alternative is to introduce child-friendly bank cards or digital wallets that come with built-in parental controls. These tools let you set spending limits, receive instant purchase notifications, track transactions in real time, and even block certain categories like online marketplaces or gaming platforms. This way, kids still enjoy the independence of managing their own money, but parents have the reassurance of oversight and can step in if something looks unusual.
Equally important is protecting the digital environment where these payments take place. Banking apps and online stores can become targets for cybercriminals, so installing a cybersecurity solution that includes safe browsing and secure payment protection is essential.
3. Secure devices and financial accounts
Children may not fully understand the importance of account security, but one weak password or stolen device can expose all their financial tools.
As a parent, you can help by:
- Enabling two-factor authentication (2FA) for every app that might be used for online purchases
- Using a password manager, which stores credentials securely and allows family access if something goes wrong
- Teaching the basics of strong passwords: including at least 12 characters, avoiding names or birthdays and not reusing them across platforms.
By turning these habits into everyday practice, you give your child the tools to keep their finances and their personal data safe.
4. Keep track of subscriptions and recurring charges
One of the easiest ways for children to lose track of their spending is through subscriptions. Today, many games, learning tools, and streaming services use recurring payment models instead of one-time purchases. A child may sign up for a “free trial” without realizing it will automatically convert into a monthly charge once the trial period ends. Because these fees are small and recurring, they often go unnoticed until the balance is drained or a parent checks the account.
Teach your child to:
- Always ask before starting a free trial
- Look for “auto-renew” settings and learn how to cancel them
- Set calendar reminders for trial end dates
On the parental side, review the app store purchase history regularly and scan your email inbox for renewal notifications that might otherwise slip through. Many banking apps and security tools can also flag recurring charges or send real-time alerts for every transaction, making it easier to stay on top of spending. By turning subscription management into a shared responsibility, you help your child understand that “invisible” charges are still real expenses that require attention.
“When we talk about financial literacy for children, we can’t stop at teaching them how to budget or save. Their money is already digital, which means their first financial decisions happen online: in games, apps, and digital wallets. Without cybersecurity awareness, those lessons remain incomplete. Helping kids recognize scams, protect their accounts, and use secure payment tools is just as important as teaching them the value of money itself,” says Andrey Sidenko, Lead web content analyst at Kaspersky.
Learn more and download “Kaspersky’s Digital Schoolbag: A Parent’s Guide for the School Year,” available in PDF format here.