Over the holidays I did a lot of shopping online. It’s so easy these days.  Kids, however, don’t have access to online payment tools, so parents often help their kids make these purchases by using their own accounts and having their kids pay them back.


Unfortunately, recent research shows that kids often purchase online without their parents’ consent. A sort of “buy now – ask later” mind set. Or, if they expect you’ll say “NO” they may simply hope you don’t check your credit card statement.


To protect your own finances – and prepare your kids for the day they get their first credit card – discuss with your children these basic online financial safety tips:



  1. Protect your information. Never give out your credit card number (or your PIN) to anyone, including your children. And explain the importance of protecting your personal information from identity theft. Your kids will be more likely to follow this safety rule themselves if they see you practicing it.
     

  2. Keep it legal. Since it’s illegal to use another person’s credit card, parents need to sit down at the computer and do the data entry themselves, even if the purchase is on behalf of the child. This will reinforce that this is a strict rule that needs to be obeyed.
     

  3. Include your child in the process. If you are going to make an online purchase on behalf of your child, walk them through the steps you go through in order to ensure that a site is legitimate and that financial transactions are secure. This will help educate and protect them in future.
     

  4. Check your statements. This monthly review will help you catch any misuse or unexplained purchases. And if your children see you putting a tick mark next to each item on your credit card bill, they’ll know you carefully check every item, and it will encourage them to do the same when they’re older.