Introduction to Smartphone Ownership
Giving your child their first cell phone can be a significant milestone, and it’s essential to set the right guardrails around the device. Most phones are designed to make spending easier and sometimes invisible, so it’s up to parents to teach their kids about responsible phone ownership. According to Robin Taub, author of "The Wisest Investment: Teaching Your Kids to be Responsible, Independent and Money-Smart for Life," giving your child their first cell phone can be a great teachable moment to integrate a money lesson into everyday life.
Understanding the Costs of Phone Ownership
The first step is to sit down with your child and go through the various costs associated with phone ownership, determining who is responsible for them. There are obvious costs like the phone itself, a phone plan, a case, and sometimes a phone protection plan. For younger children, around 13 or 14 years old, you can start by teaching them about data overages, connecting to wireless networks, and turning off data roaming while traveling to avoid a big bill. With older teenagers, parents can gradually shift the responsibility of paying the phone bill onto them.
Hidden Costs of Phone Ownership
However, there are many other, less visible costs, such as in-app purchases or trial sign-ups, that can be secretly added to a credit card. Rebecca Snow, co-founder of the Toronto chapter of Unplugged Canada, remembers her children playing a popular online world-building game called Roblox, which often required in-app purchases for new avatars or outfits for the characters. Certified financial planner Kalee Boisvert also experiences requests to purchase tokens from her 11-year-old daughter, who has a smartphone without a cell phone plan. Boisvert uses these requests as an opportunity to discuss priorities and work with her daughter to determine what’s important.
Building Financial Literacy
There is an urgent need for financial literacy before children get their first smartphone. Rebecca Snow’s 12-year-old son, who doesn’t yet own a smartphone, uses a pocket money app called Mydoh on the computer or Snow’s phone to understand the concept of saving and earning through chores. Snow believes that these healthy online financial habits will come in handy when he eventually gets his first smartphone. Margot Denomme, founder of an advocacy group that raises awareness of digital dangers, compares giving smartphones to tweens and teens to driving a car. She suggests that parents should disable in-app purchases and enable parental consent for every purchase before handing over their phone.
Setting Boundaries and Monitoring Activity
Denomme recommends checking in with kids weekly, or even daily at first, to ask what kind of activities they were doing online. She encourages parents to engage with their children online to understand and help them point out warning signs. Denomme believes that parents often take their children’s privacy too seriously, and it’s okay to take precautions as the phone’s owner. By setting boundaries and monitoring activity, parents can help their children develop healthy phone habits and a strong understanding of financial responsibility.
Conclusion
In conclusion, giving your child their first cell phone is a significant milestone that requires careful consideration and planning. By understanding the costs of phone ownership, building financial literacy, and setting boundaries, parents can help their children develop healthy phone habits and a strong understanding of financial responsibility. By taking the time to teach your child about responsible phone ownership, you can help them navigate the digital world with confidence and financial savvy.