Spending & choices

Ads, apps, and in-app purchases, and helping kids see the sales pitch

Recognizing an ad and resisting it are different skills, and today’s ads are built into the games and videos children love.

What helps: name ads when you see them, ask “what do they want you to do?”, use a wishlist and a waiting period for anything an ad made them want, and turn on purchase approvals on devices.

When children can tell it’s an ad

The American Academy of Pediatrics summarizes the research this way: children 7 and younger have limited ability to understand an ad’s persuasive intent, that someone is trying to change what they think and do. Between about 7 and 11, children can start to recognize advertising and its intent with their parents’ help. By around 12, most can identify ads and what advertisers want.1

Even then, recognizing an ad doesn’t mean being able to resist it, especially when it features a favorite character or a trusted video creator.1

Why apps and games make it harder

Many ads children see today don’t look like ads. They’re unboxing videos, sponsored posts by influencers, rewards inside games, and prompts to buy extra lives or coins. The AAP statement notes that one analysis of the most-downloaded free apps for children under 5 found commercial content in 96% of them, including ads that pop up during play and ads that offer rewards for watching. App characters were seen encouraging in-app purchases in some games.1

Talking about ads by age

  • Under 7: keep it simple. “That’s an ad. It’s there to make you want the toy.” Notice how ads make toys look bigger or more fun than they are.
  • 7 to 11: ask questions together. “Who paid for this? What do they want you to buy? How does it make you feel?” Point out sponsored videos and in-game shops.
  • 12 and up: talk about influencers, data, and “limited time” pressure. Ask how a creator earns money from a video.

A wishlist and a waiting period

When an ad sparks a want, put it on a wishlist instead of saying yes or no on the spot. A short wait, such as a week, gives the excitement time to fade and turns the decision into a saving plan if it’s still wanted. See teaching patience for ways to make waiting easier.

Settings that help

Turn on purchase approvals on phones, tablets, and game consoles so in-app purchases need a parent. Remove saved payment methods from children’s accounts. Settings don’t replace conversations, but they give you a chance to talk before money is spent.

What the research says

  • Children 7 and under have limited ability to understand advertising’s persuasive intent; from about 7 to 11 they can begin to recognize it with parents’ help; by about 12 most can identify ads and their intent.1
  • Recognizing advertising doesn’t guarantee resisting it, especially when ads are built into trusted social networks or delivered by influencers.1
  • In one analysis cited by the AAP, 96% of the most-downloaded free apps for children under 5 contained commercial content.1
  • Children pick up money habits largely by watching the people around them, so how you react to ads is part of the lesson.2

Try it in KidsLearnCash: add anything an ad made your child want to their wishlist, then turn it into a goal only if it still matters a week later.

See wishlists in the app · Open KidsLearnCash

Sources

  1. Radesky, J., Reid Chassiakos, Y., Ameenuddin, N., Navsaria, D., & AAP Council on Communication and Media. (2020). Digital advertising to children. Pediatrics, 146(1), e20201681. doi.org/10.1542/peds.2020-1681
  2. Consumer Financial Protection Bureau. (2016). Building blocks to help youth achieve financial capability: A new model and recommendations. consumerfinance.gov/consumer-tools/educator-tools/youth-financial-education/learn/

General educational ideas, not legal, medical, or individualized advice. Device settings vary by manufacturer. We summarize published research in plain language; read the sources for their methods and limits. No affiliation or endorsement is implied.