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Children's Online Spending Habits - UK - November 2015

Published By :

Mintel

Published Date : Nov 2015

Category :

Lifestyle

No. of Pages : N/A

The concept of pocket money has changed significantly over the last ten years as children in a digital world wish to spend their money online, whether by purchasing clothes or playing online games. Among children who spend money themselves online, two out of five are now spending the majority of their pocket money online.

Table of Content

Overview

What you need to know
Covered in this report

Executive Summary

A parent’s bank card is the primary method of spending
Figure 1: Methods of spending money online, September 2015
Pay-as-you-go remains preferred payment method
Figure 2: Smartphone payment method, September 2015
Being unaware is parents’ greatest concern
Figure 3: Biggest concerns regarding child’s online spending, top-5. September 2015
Children are choosing to save
Figure 4: Online spending behaviour, September 2015
Online games influential in encouraging spending
Figure 5: Encouragements to buy, September 2015
What we think

Issues and Insights

Alleviating parental concerns
The facts
The implications
Helping children understand spending online
The facts
The implications

The Market – What You Need to Know

Children have access to a range of devices
Facebook facing class-action lawsuit over unauthorised spending
Advertising Standards Authority challenges gaming advertising
Google and Apple respond to the European Commissioner on in-app purchases
Controversy over YouTube Kids advertising

Market Drivers

Children have access to a range of devices
Figure 6: Technology used at home, March 2015
Facebook facing class-action lawsuit over unauthorised spending
Advertising Standards Authority rules for changes on online games
Controversy over YouTube Kids advertising
Google and Apple respond to the European Commissioner on in-app purchases

Key Players – What You Need to Know

PennyOwl pocket money app launched
Buy-buttons rolled out across social media
Financial literacy taught in schools for the first time
Disney introduces video streaming service
Nationwide launches a current account for children
Amazon adds allowance feature

Launch Activity and Innovation

PennyOwl pocket money app launched
Buy-buttons rolled out across social media
Financial literacy taught in schools for the first time
Nationwide launches current account for children
Disney introduces video streaming service
Amazon adds allowance feature

The Consumer – What You Need to Know

Parents’ bank cards are primary method of spending
Most children have a smartphone
Pay-as-you-go remains preferred payment method
Spending is kept low
Being unaware is parents’ greatest concern
Clothes most popular item bought online
Laptop still main device for purchasing
Children are saving
Online games influential in encouraging spending

Methods of Spending

Parents’ bank cards are primary method of spending
Figure 7: Methods of spending money online, September 2015
Older children are given their own bank card
Figure 8: Methods of spending money online, by age, September 2015

Mobile Phone

Most children have a smartphone
Figure 9: Children’s mobile ownership, September 2015
Pay-as-you-go remains preferred payment method
Figure 10: Smartphone payment method, September 2015
Phone spending is kept low
Figure 11: Monthly spend on child’s smartphone, September 2015

Monthly Spending Amount

Nearly half spend less than £10 a month
Figure 12: Amount spent online by children, September 2015

Parental Concerns

Being unaware is parents’ greatest concern
Parents worry about boys’ high gaming spend
Figure 13: Biggest concerns (ranked anywhere in parents’ top five) regarding child’s online spending, September 2015
Figure 14: Parents’ biggest concerns, September 2015

Items Bought

Clothes most popular item bought online
Figure 15: Items bought online, September 2015
Younger children more likely to buy apps
Figure 16: Items bought online, by age, September 2015
Girls are buying clothes, boys are buying video games
Figure 17: Items bought online, by gender, September 2015

Devices Used

Laptops still the main device for purchasing
Figure 18: Devices used to purchase online, September 2015

Online Spending Behaviour

Children are willing to save
Figure 19: Online spending behaviour, September 2015
Children are purchasing via social media
Children using online services are spending accidentally
Figure 20: Spending online without realising it, by spending method, September 2015

Encouragements to Buy

Online games influential in encouraging spending
Figure 21: Encouragements to buy, September 2015
Boys more influenced by online advertising
Online advertisers must show caution despite influence
Figure 22: Encouragements to buy, by gender, September 2015

Appendix

Data sources
Abbreviations

List of Table

NA

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