What to do when your child starts spending money in video games

Between screen time and concerns about violence, you would think parents have enough to worry about when it comes to video games.

Let me introduce you to microtransactions.

Lost already? Let me explain. Microtransactions are when someone pays cash for an item or other perk in a game or app.

It might be spending a few dollars for a new "skin" or outfit for a player in Fortnite or buying a "loot box" for a chance to win cool items in Overwatch.

Some games are even designed to be "pay to win": where the only realistic way to progress deep into the game is by pulling out your — or your parent's — wallet.

They're popular, they're controversial and they're not going away. But are microtransactions something parents should be worried about? And how can you best approach the topic with your kids?

It's an issue ABC's Good Game is exploring in is new series aimed at parents, Help! My Kid is a Gamer.

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Why your kids might be interested in microtransactions

In games like Fortnite players regularly buy skins for their characters with an in-game currency called V-bucks.

If you don't spend time playing games yourself, the notion of paying real money on an outfit for a character in a game might seem strange.

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But, just like it's important to be seen wearing the right clothes and brands of shoes to school, it's important for kids to look cool in games, says Marcus Carter, a gaming expert and lecturer in digital culture at the University of Sydney.

"Something that parents overlook or don't understand about games like Fortnite is that it's really a social space," Dr Carter says.

"Some adults see [digital items like skins] as … not real or valuable. But, for the kids who grow up online, the online world is just as important as the offline one."

Sometimes, microtransactions simply make a game more exciting or interesting for children, adds Seamus Byrne, a technology commentator with two young children.

"I think of it as being a bit like giving kids those old-fashioned football cards," he says.

"One packet alone is often not that exciting. People might want to go and collect the whole set, which can be more expensive. It's about people building a digital collection attached to a game."

Should parents worry about loot boxes?

Some games allow players to buy loot boxes offering a chance at winning in-game items or other perks.

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Loot boxes often have similar mechanics as pokies, like smaller, intermittent rewards and the potential to "win big". They create excitement — and, for some people, that can cause problems.

One gamer, who didn't reveal his name, told triple j's Hack he spent over $50,000 on loot boxes playing a game called Transformers: Earth Wars.

While the research into the impact of loot boxes is still developing, researcher Jim Sauer from the University of Tasmania's School of Psychology says parents have reason to tread carefully.

"We know, generally speaking, that things like impulse control, the ability to anticipate consequences and the ability to delay short-term gratification … develop with age," he says.

Loot boxes for sale in Overwatch, a popular first-person shooter game.(Supplied: Activision Blizzard)

Another concern is that loot boxes could "prime" gamers for other forms of gambling, says Sally Gainsbury, a gambling and gaming researcher from the University of Sydney.

"What we know from the literature is that people who do engage in in-game payments … are more likely to then go on and gamble and play social casino games and even develop gambling problems," she says.

"We don't know what the causal factor is though. It may be that people who are interested in gambling engage in these sorts of transactions, and they would have gambled anyway."

For parents, it can be particularly difficult to know when a game contains loot boxes because they and other gambling-like mechanics in games are largely unregulated in Australia.

Three tips for navigating microtransactions with kids

So now you know a bit about microtransactions, how do you manage them with your kids? Here are some tips from Seamus.

1. Build it into your pocket money system

To make sure that his kids really want a particular in-game purchase, Seamus asked them to explain why they wanted it and why it was worth the purchase price.

To pay for it, the kids saved up their own pocket money.

The system means a) the kids must weigh up their purchasing decisions against other options; and b) they have to stop and think before buying something in the heat of the moment.

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Read more 2. Never share your credit card details

It's important to keep your credit card details to yourself. Seamus's advice is to set up family accounts on the Apple Store and any gaming consoles children are using.

With a family account, your child will be able to request a purchase, but the parent will need to authorise it.

If you leave your credit card details in your tablet, phone or elsewhere, keep in mind your child may be able to access them if they have access to your account.

3. Set rules or limits around loot boxes

Seamus's approach is to encourage his children to enjoy the loot boxes when they have them, but not use them to chase after particular rewards.

"I hope through positive parenting they've understood that it's cool to get the awesome items but you shouldn't chase those items. That's that gambling aspect," he says.

"In most of these games, you can earn loot boxes as you go along, too.

"[The lesson is] don't just buy 100 loot boxes because you're really hoping to get an awesome item."

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Read more 4. Sit down with your kids and watch them play

"I wish more parents would spend a bit more time participating in what their kids are doing in digital worlds," Seamus says.

"They would worry a little bit less about it if they were a bit more informed."

When you're sitting next to your child while they're playing, you have an opportunity to talk to them about the game and help them think through any decisions about things like microtransactions.

"It's all about being able to look at that specific game and say, 'Is this just trying to punish you for not being someone who is willing to open your wallet on a regular basis'. Those kinds of discussions are great to have with your kids."

You can check out Good Game's new iview series Help! My Kid is a Gamer.

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