The Consumer Financial Protection Bureau (CFPB) has released a warning about video games and how they are designed to get you to spend money—often without realizing it. Many of us, especially parents, have seen how much time our children spend playing video games. But did you know these games may be encouraging your kids to spend money, too?
Video games are popular with kids of all ages, and the technology they use can sometimes trick players into making purchases. The CFPB has noticed some problems with how these games handle money and has issued a new warning to help families protect their wallets.
How video games make you spend money
Many games have their own currency, which players need to buy in order to unlock certain features or buy special items. The tricky part is that it’s hard to tell how much you’re really spending. For example, you might pay $3 for 500 game coins, but it’s hard to know how much those coins are worth while you’re playing the game. This can make it easy to lose track of how much money has been spent.
Some games also use gambling-like tricks to get players to spend more. “Loot boxes” are surprise boxes that players can buy, hoping to get something rare or valuable. But the odds of getting something good are usually very low, and the game might make it seem like you’re just one step away from winning, pushing you to spend more money.
What you can do to protect your family
Here are some steps the CFPB recommends to keep your child’s gaming expenses under control:
- Use Gift Cards Instead of Credit Cards: Instead of saving your credit or debit card information on the gaming account, consider using a gift card with a set amount of money. This way, your child can only spend what’s on the card.
- Check Parental Controls: Some games have parental controls that can help you manage spending. You can set up alerts from your bank to see if too much money is being spent, or require a password before making a purchase.
- Choose Games Without Extra Purchases: Some games let you make one-time payments without having to spend more later. Look for games that don’t have these “microtransactions” to avoid unexpected costs.
- Limit Data Collection: Video game companies collect a lot of data about how players act, and sometimes they use this data to change the prices or encourage more spending. Check the game’s settings and see if you can limit how much information the game collects about your child.
Why this matters
The CFPB says that some video game companies don’t offer help when things go wrong. If your child’s account gets hacked, or if they accidentally spend too much, it can be hard to get your money back. And when games are connected to your credit card or mobile payment service, you could see unexpected charges.
The warning from the CFPB encourages families to be more aware of how video games handle money and to take steps to protect themselves. You can also report problems with a game or financial issue to the CFPB at consumerfinance.gov/complaint or call (855) 411-CFPB (2372).
By taking these steps, you can help your child enjoy their favorite games while keeping your family’s finances safe.
