Unprotected text – the new worry for parents of teenagers

Analaura Luna

Kids today think they know everything. And in some ways, they’re right. They can text faster than a secretary can type and the average first grader can put a PowerPoint presentation together before her parents can open the program. But there is a dark side to all this technological know-how – it can come with a killer price tag.

Mobile phones are a must-have accessory for kids today. A survey commissioned by SIMplus Mobile and the Youth Action and Policy Association NSW reported that 89 per cent of teenagers living in Sydney and Melbourne own and regularly use mobile phones. Without them, kids feel socially isolated and are often left out of events organised by friends who communicate almost entirely by text. Even parents are in favour of their kids having phones because they’re a great way of keeping in contact with children who are always on the go. But all this communication comes at a cost – as a society we have enormous problems with impulse buying and technology isn’t helping us kick the habit. Phones aren’t just for talking anymore, and all of the added extras – SMS, MMS, internet access, games and ringtones – can drive monthly bills up by hundreds, and even thousands, of dollars. These days it really is possible to be driven deep into debt by a downloadable dancing frog.

One solution is to not give kids phones, but teenagers need to be encouraged to manage their money and their social lives responsibly and mobile phones provide important lessons in both. Prepaid services are another alternative, but if you think they solve the problem entirely you’re in for a shock: 63 per cent of teenagers are already using prepaid plans and it isn’t necessarily helping. Instead of budgeting their credit over a month they simply top up whenever they run out, and there are plenty of parents out there funding their kids’ prepaid phone habits. Prepaid plans are a good place to start because they allow users to keep tabs on the amount they’re spending, although they’re clearly not enough on their own. Teenagers need to learn how to manage any new responsibility, and that guidance has to come from you, so start with the basics – make them pay for their own credit and don’t get ‘guilted’ into providing top ups. The majority of service providers will allow a 000 call with no credit and incoming calls don’t usually require any either, so you’re not putting your children in danger by cutting them off. Next, sit down with your kids and help them work out a reasonable monthly mobile budget. Make sure they understand how much everything costs, including how much it costs to talk versus how much it costs to text, and help them figure out how to get the most from their credit.

Once they’ve got the basics under control it’s time to talk about scams. Lots of kids have racked up unexpectedly high bills because they’ve downloaded a ringtone or screen saver for their phone that was advertised as ‘free’ but came with hidden charges attached. In a lot of cases these extras are also subscription services – the first one is free but by downloading it you’ve agreed to pay premium prices for a new ringtone every week. Plenty of adults get caught out by these tricks, so it’s hardly surprising that kids do. Sit down with them and go over the fine print of one of these download offers and show them what they really cost. Once they have all the information it’s likely that your kids would rather save their money than spend the next year paying off a series of screen savers.

And remember: your teens probably know as much as you do (or more) about how mobile phones work, so why not trade information? When you’ve taught them about the financial side of mobile phones, they can show you the fun side – you might be surprised by what you’ll learn. Your kids might not know everything and neither will you, but between you you’ve got a whole lot of knowledge and together you can all get the most out of your phone services without letting a downloadable frog break the bank.

If you liked this article you might also be interested in these other articles about kids and money:

Teaching kids about good money management

Your Family Your Money eight-month baby financial plan

Want more? Take a look at the rest of our articles about kids and money.

Share your thoughts, ideas and tips with the rest of the YFYM community ... visit our live forum to have your say!

Make sure you get the latest money management advice - bookmark YFYM today!

Author's Biography

Analaura Luna is an author, wealth adviser and founder of Your Family Your Money. Your Family Your Money’s goal is to simplify traditionally complex financial strategies, demystify financial jargon and debunk common financial myths, becoming every family’s first stop for financial advice, information and inspiration.

Go back to the list

	Real Money Advice for Divorce A three stage money guide to help you negotiate the divorce process and create a secure financial future for yourself and your kids.
	30 Day Challenge How to turn your life around in 30 days and save $30 000 in the process. A breakthrough in money management!
	Real Money Advice for Families Move your finances from red to black in four simple steps and secure your family's financial future.
	Real Money Advice for Kids A guide designed to help parents teach their kids the skills to become successful, confident and financially responsible.