13/01/2026

LYFE TUESDAY | JAN 13, 2026

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Teaching children to manage money o Why financial literacy must go hand in hand with cybersecurity

A S 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”, experts shared 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 is also a crucial time to build healthy habits that will stay with children for life. Among these, financial literacy is quickly becoming one of the most important. However, as the ways that children interact with money have changed dramatically, learning its value must also now include learning how to protect it in a digital environment. If kids are not aware of online risks, even strong financial literacy would not 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.

How to teach children to manage their money responsibly and securely 1. Set clear spending limits Helping children understand boundaries is the first step in building financial discipline and digital awareness. Start by establishing a basic budget structure for your child’s typical expenses: 0 School supplies 0 Food or lunch money 0 Sports or hobby-related purchases 0 Entertainment (apps, games, subscriptions) Rather than micromanaging every purchase, talk about percentages. For example, 70% of the budget 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 are 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 such as 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: 0 Enabling two-factor authentication for every app that might be used for online purchases 0 Using a password manager, which stores credentials securely and allows family access if something goes wrong 0 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 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 realising and it may automatically convert into a monthly charge once the trial period ends. 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: 0 Always ask before starting a free trial 0 Look for “auto-renew” settings and learn how to cancel them 0 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 recognise scams, protect their accounts and use secure payment tools is just as important as teaching them the value of money itself,” said Kaspersky lead web content analyst Andrey Sidenko.

Helping children understand boundaries is the first step in building financial discipline and digital awareness.