People spend a lot of money on things that make them feel good, like entertainment and exercise.
These can be:
- subscriptions, such as to online content or gym memberships
- games and apps for consoles, computers and phones
- streaming platforms, for watching tv and movies, or gaming.
To access some services, you need to ‘subscribe’ or ‘become a member’. And some games and apps will only let you access certain things if you pay for the ‘premium’ version.
Sometimes there is a ‘free trial’ period. Some may give you access to all content but with ads, or limited amounts of content until you pay for more.
Understand when and what you’ll have to pay
It’s important you understand how much money these services cost before you subscribe.
When you subscribed you probably agreed to some terms and conditions.
You may have just ticked a box saying ‘I accept the terms and conditions’. What you’ve agreed to is a ‘contract’. Contracts are a deal between 2 or more people or organisations agreeing to do certain things.
Often the company asks for your card details when you first join. They won’t charge you for the length of the free trial, and often that’s all you wanted it for.
- If you don’t cancel your subscription after the free trial period, the company will start charging you money using direct debit and that might be more than you can afford.
- Some contracts can even include an agreement that if you cancel early then you have to pay them a cancellation fee, or for a full month/year, even if you don’t use it.
Make sure you understand what you’re signing up for, and check with an adult if you don’t understand the terms and conditions.
Read about the app or game before you download it
Before you download and install an app pay attention to its description.
Even though the app says it’s free, in smaller print it might say ‘Contains ads’ and ‘In-app purchases’.
Both these things mean there will be options to spend money in the app.
- 'Contains ads': some games will have so many ads in them that it’s really hard to play without being interrupted. Often the game will say you can pay to remove ads.
- 'In-app purchases': some games will have parts that you can only access if you pay for them, or you have to use tokens or play money. They often make it hard to level or play the game without them. The game will often have options to sell you those tokens, often as discounted ‘specials’ and bundles.
Gaming
Buying a video game or app isn’t strictly a one‑time purchase anymore. It’s a good idea to be aware of the extra costs of playing the game before you buy. Even some free‑to‑play games will often encourage you to buy things as you play over time.
Many games, once they’re released, will have lots of expansions and extra content to go with it – called downloadable content or DLC. DLC can often costs as much as the original game and it can feel like you need to get it all to keep enjoying the game. Make sure you know what’s included in the DLC and if it turns out you still want it, add it to your savings goal so you’re not left short.
While you’re in‑game it’s likely you’ll be asked to pay for things like gear, limited use items, lootboxes or in‑game currency. These purchases are known as microtransactions or MTX. Sometimes these small payments will be necessary to level in a game or properly enjoy it, and they can add up fast. Even loot boxes that offer you the chance to get extra perks are rarely free. Or if they are, chances are you’ll need to spend money to unlock them.
Read reviews
Most online game stores include customer reviews in the description. Make sure you read them. If you see lots of people complaining that the app was full of ads, asking for lots of money, or wouldn’t let them unlock levels unless they paid for them—it’s probably not going to be very fun.
Make smart decisions
It can be tempting to buy in-game purchases so you can get on with enjoying the game. But the more you level, the more likely you’ll need more upgrades and more tokens. That could start to really add up.
It’s all about balance. If paying a couple of dollars once just to turn off the ads is all you need to enjoy the game, then that’s probably okay. But if the game keeps asking for more money so you can play, you need to either:
- set yourself a limit on what you’re happy to spend
- ask yourself whether it’s worth it to keep playing.
