Young people lose track of spending most often in games
- Social impact
Hans Sjouke Koopal
Press Officer Personal & Business Banking
– Learning how to handle money also means learning how to handle temptation. This is especially challenging for young people when it comes to in-game purchases. Almost half (46%) cite spending large amounts on items such as Fortnite skins, Robux and FC Points as one of the most common money mistakes. This puts it at the top of the list. Parents, too, rank in-game spending as the number one pitfall, with 50% saying their child often makes this money mistake. These are the findings of research by BUUT, the bank for young people. The findings come at a time when the European Commission is also taking a critical look at the way games entice young people into making digital purchases. This has prompted BUUT, together with streamer Chatmo and neuroscientist Barbara Braams, to highlight ways in which young people can deal with these digital temptations more consciously.
The answer is not to ban it, but to set boundaries
“It’s really not surprising that young people spend money in games. You can make your character stronger, improve your team, or unlock something exclusive,” says BUUT’s Sanne van Kuijk. “But because you pay with virtual currencies such as Robux, V-Bucks or FC Points, it doesn’t feel like you’re spending real money. So you can end up spending a lot without realising it.”
BUUT is not calling for a ban on in-game purchases, but for conscious budgeting. “If you decide in advance how much money you want to spend in games, for example by creating a dedicated gaming pot, you can keep track of your spending and stop a fun purchase from turning into a money mistake.”
Streamer Chatmo also sees that young people are not always aware of how much they spend in games. “In-game purchases have become part of gaming, but many players only realise afterwards how much money they have spent. I think it’s great that BUUT is not saying you should stop buying completely – instead it is helping young people to set a budget in advance and stay in control of their spending.”
Small reward, great temptation
The prospect of an instant reward makes in-game purchases especially tempting. A new skin, player or other item has immediate value in the game. Neuroscientist Barbara Braams recommends agreeing on an amount for in-game purchases in advance. “You can talk about it, but the most effective approach is to set clear rules. For example, set a fixed monthly amount for these purchases. Once it’s gone, it’s gone.” * Another equally important aspect is understanding why young people are susceptible to this. “The temptations are so strong and so cleverly crafted that you can’t reasonably expect adolescents to resist them all the time. That is not a sign of weakness, it is simply how the brain works.”
There are also concerns at European level about in-game spending. The European Commission is working on new rules to better protect young consumers from digital temptation. European consumer authorities have already established principles for in-game currencies. These include measures to ensure transparent pricing and prevent children’s vulnerability from being exploited.
As well as being better protected, BUUT believes it is important for young people to learn to deal with these temptations themselves. To achieve this, BUUT is partnering with Chatmo and Braams to highlight over the coming period how young people can set boundaries and stay in control of their money.
About the research
The research was conducted by PanelWizard on behalf of BUUT among 500 young people aged 12 to 18 and 500 parents. Both groups were asked which money mistakes they believe are most common among young people. Respondents could select a maximum of five answers.
Spending a lot of money on in-game purchases is cited most often by young people (46%). Among boys, this rises to 52%. In-game spending is also ranked highest by parents (50%); among parents of boys, this rises to 58%. Other common money mistakes made by young people are spending money when they are actually trying to save (42%) and buying something online that they later regret (38%).
About BUUT
BUUT is the new bank for teenagers from the creators of Tikkie. Like Tikkie, BUUT is part of ABN AMRO. With BUUT, young people can use handy pots to save up money and make payments easily. The app is designed specially for a new generation: simple, visual, user-friendly and interactive. BUUT is covered by the Dutch Deposit Guarantee Scheme and combines the reliability of a large bank with the innovative power of Tikkie.
*Based on the BUUT article “Why does his pocket money always get spent on skins, coins and other digital things?”, featuring neuroscientist Barbara Braams