How to Explain Loot Boxes and In-Game Purchases to Kids

Have you ever wondered why your child keeps asking for money to buy things in their favorite game? If so, you're not alone. Many parents find themselves caught off guard by the world of loot boxes and in-game purchases.

Loot boxes and in-game purchases, while adding excitement to games, also come with potential risks. It's important to be aware of these risks, especially when kids don't fully understand how these features work.

The goal isn't to take the fun out of gaming—it's to make sure that fun doesn't turn into a financial problem.

What Are Loot Boxes and In-Game Purchases?

Most video games today include some kind of in-game purchase—things players can buy with real money to improve their experience. These can include:

Character skins (changing how a character looks)
Weapons or power-ups (making a character stronger)
Virtual currency (used to buy other items in the game)

One of the most controversial types of in-game purchases is loot boxes. These are digital mystery boxes that players can buy without knowing what's inside. They may contain valuable items, but they could also be filled with things that don't really help in the game. Because of this, loot boxes have been compared to gambling.

Examples of games that kids commonly play and how in-game purchases work in those games:

Roblox – Players buy Robux to customize avatars and access premium content. Some games, like Adopt Me!, encourage spending on pets and items.
Fortnite – Offers V-Bucks to buy skins, emotes, and battle passes, but none of these affect gameplay.
Minecraft – Includes a marketplace where kids can buy skins, texture packs, and worlds.
Genshin Impact – Uses a gacha system (a form of loot boxes) where players spend real money for a chance to unlock powerful characters or weapons.

Did you know?

Roblox has established itself as a significant player in the gaming industry, particularly through its in-game purchases. In 2023, the platform reported net bookings (the term includes all in-game purchases, subscriptions, and game sales) of $839.5 million, surpassing market expectations (reuters.com)

The platform's revenue model is heavily reliant on in-game spending, primarily through its virtual currency, Robux. Players use Robux to purchase various virtual items, which enhances their gaming experience. The model has proven to be lucrative, with several individual games on Roblox generating revenues that exceed $10 million.

One of these games is "Adopt Me!", developed by Uplift Games and revolving around adopting and caring for virtual pets. The game has achieved remarkable milestones, including over 30 billion visits and a peak of 1.6 million concurrent players.

Why Loot Boxes and In-Game Purchases Are Confusing and Risky for Kids

Kids don't always understand the concept of real money in digital games. To them, spending virtual coins might feel different from handing over cash at a store.

Bright colors, exciting sounds, and reward animations make purchases feel fun and rewarding. This can encourage kids to keep spending without realizing how much money they're using.

Games also use specific tactics to encourage in-game purchases:

Limited-time offers – Flash sales and countdown timers create a sense of urgency, pressuring kids to buy now before the "deal" disappears.
Daily login rewards – Offering small prizes for logging in every day keeps players coming back, eventually nudging them toward paid upgrades.
Peer pressure – In multiplayer games, kids may feel left out if they don't have the latest skins, outfits, or power-ups that their friends do.
Gamification of spending – Loot boxes and mystery rewards make spending money feel like part of the game itself, encouraging repeated purchases in hopes of getting something valuable.

Another risk comes from scammers who prey on kids' enthusiasm for in-game purchases by tricking them into giving away money or personal information.

One common tactic is offering fake "free" currency or exclusive items—fraudsters promise free Robux, V-Bucks, or in-game rewards in exchange for login details or a small payment, only to steal accounts or credit card information.

Phishing links that are disguised as prize notifications or bonus content frequently show up in-game chats, which can result in malware infections or stolen accounts. Additionally, some scammers exploit in-game trading systems, convincing players, especially kids, to give away valuable items with the promise of receiving something better in return. However, these scammers often vanish without delivering anything.

Others impersonate game support representatives, claiming they can help with refunds or technical issues while secretly gathering personal and payment details. Because kids may not recognize these scams, it's important to teach them how to spot red flags and set up security measures to prevent financial loss or identity theft.

How to Talk to Your Child About In-Game Purchases

Instead of simply saying "no" to loot boxes and in-game purchases, it's important to have an open conversation with your child. Here's how you can guide them:

1. Explain How Real Money Works in Games

Let your child know that buying something in a game is the same as spending real money. If they ask for a $5 loot box, show them what else $5 could buy in the real world, like a snack or a small toy.

2. Teach Them About Gambling Risks

Loot boxes are unpredictable, just like gambling. If your child buys a box expecting something valuable but doesn't get it, they might feel the urge to try again—leading to more spending. Help them understand that spending money doesn't always guarantee a reward.

3. Set Spending Rules Together

Decide on a plan for in-game purchases. You might:

Only allow purchases on special occasions (like birthdays).
Set a monthly budget.
Always ask permission before buying anything.

4. Use Parental Controls

Most gaming platforms and devices allow parents to set spending limits or block purchases completely. You can also require a password before any purchase is made. This prevents accidental (or sneaky) spending.

5. Encourage Earning Instead of Buying

Some games let players earn rewards by completing challenges instead of spending money. Encourage your child to work toward in-game achievements instead of buying instant upgrades.

What to Do If Your Child Has Already Spent Too Much

If you find out that your child has spent money on loot boxes or in-game purchases without permission:

Check refund options – Some gaming platforms offer refunds, especially if a child made an accidental purchase.
Set stronger controls – If necessary, tighten restrictions to prevent future purchases.

Want to prevent unexpected purchases and limit gaming time? Bitdefender Parental Control helps you manage spending, screen time, and content access, ensuring a safer gaming experience for your child.

How to Talk AI and Deepfakes with Children

FAQs

Are loot boxes considered gambling?

Loot boxes function similarly to gambling because players spend money without knowing what they will receive. Since they rely on chance and can lead to repeated spending in hopes of getting a rare item, many experts and regulators have raised concerns about their addictive nature, especially for children. Some countries have even classified loot boxes as a form of gambling and imposed restrictions.

How can I stop my child from making in-game purchases without permission?

You can prevent unauthorized in-game purchases by setting up parental controls on your child's gaming console, mobile device, or app store account. Most platforms allow you to require a password or approval before purchases can be made. You can also disable in-game purchases entirely or set spending limits to keep costs under control. Having a conversation with your child about responsible spending and asking you for permission before buying anything could also help.

Can scammers steal my child's gaming account through loot boxes or in-game purchases?

Scammers often target kids through fake offers for free in-game currency, skins, or loot boxes. These scams may appear in online ads, game chats, or phishing emails, tricking children into sharing their login credentials or personal details. To protect your child, teach them to avoid clicking on suspicious links, never share passwords, and only make purchases through official game stores after getting your permission. Setting up two-factor authentication (2FA) can also add an extra layer of security to their account.

How can I tell if my child is addicted to in-game purchases?

If your child frequently asks for money to buy in-game items, gets frustrated when they can't make purchases, or secretly spends money on games without permission, they may develop an unhealthy reliance on in-game spending. Other signs include obsessing over loot boxes, feeling pressured to keep up with friends' in-game purchases, or spending excessive time watching others open loot boxes online. To help set clear spending limits, discuss the value of money, and encourage them to enjoy games without relying on paid rewards. Using parental controls to restrict purchases and monitoring their gaming habits can also prevent compulsive spending.