Survey: One in Three Parents Say Kids Made Unauthorized Online Purchases

The Growing Concern of Unauthorized Online Purchases by Children

A recent survey has revealed a troubling trend among parents: nearly one in three have discovered that their children made an online purchase without permission. This issue is becoming increasingly common, with the average cost of such unauthorized spending reaching around $170 per family. However, for some families, the financial impact was much more severe, with nearly one in five parents reporting that their child’s unapproved purchases exceeded $300.

The survey, which included 2,000 parents across the United States, highlights how easy it is for children to make digital purchases without parental oversight. These purchases often involve items like video games, clothing, and other consumer goods. But in some cases, kids have gone beyond simple retail purchases, buying high-cost items such as computers, smartphones, smartwatches, and even cameras. A few parents even reported that their children had purchased stocks and cryptocurrency, further complicating the issue.

Lack of Monitoring and Financial Education

Despite the risks involved, many parents are not closely monitoring their children's online activity or spending habits. According to the survey, 23% of parents rarely or never check their children’s debit or credit card activity. Additionally, 11% of parents do not require their children to get permission before making digital purchases. This lack of oversight may stem from a deeper challenge: teaching children about financial responsibility.

The study found that 72% of parents believe their children do not fully understand the value of money. This gap in financial awareness is especially pronounced when it comes to digital currency, with 44% of parents admitting that it is harder to teach children about the value of digital money compared to physical cash.

Brad Stroh, co-founder and co-CEO of Achieve, emphasized the importance of early financial education. “Overspending online can be a slippery slope for anyone, but it's especially true for kids in an era where nearly everything is just a click away,” he said. “Parents are busier than ever and struggle to keep up with monitoring their kids’ purchases. However, it’s important that they have a game plan to teach their kids financial awareness so they understand the value of money early on.”

Allowance and Consequences

The survey also explored how parents manage their children’s allowances and financial habits. Most parents (57%) give their children a regular allowance, with cash being the most common form of payment (73%). On average, children receive about $119 per month, though 14% of parents give more than $250.

Despite having a budget, overspending is still a common issue, with only 12% of parents saying their children never go over their allowance. When unauthorized purchases occur, most parents (56%) address the situation through a conversation with their children. Other consequences include taking away a device (23%), requiring the child to pay back the money (20%), and freezing or restricting bank account access (11%).

Many parents hope their children will learn financial responsibility, with 66% stating they would be more relaxed about their children’s spending if they showed they understood the value of money. However, teaching these lessons is not easy. A large majority of parents (61%) wish a financial expert could help teach their children healthy spending habits.

The Importance of Early Financial Education

Stroh stressed the need for a thoughtful and consistent approach to financial education. “There’s no single ‘right way’ to teach kids to have a healthy relationship with money, but the key is for parents to have a thoughtful, tailored and consistent approach to their kids’ financial education,” he said. “Starting conversations with kids about money early on will set them up for a more successful financial future.”

Survey Methodology

The survey was conducted by Talker Research and commissioned by Achieve. It involved a nationally representative sample of 2,000 American parents with a child aged 18 and under living at home. The survey was administered and conducted online between April 14 and April 23, 2025.