Why financial literacy for kids must go hand in hand with cybersecurity in UAE
A new report shares tips on how to teach children smart money and online safety habits
Dubai: As children in the UAE grow up in an increasingly digital world, their first experiences with money often begin with in-app purchases, gaming loot boxes, and prepaid cards linked to digital wallets.
This shift from physical cash to digital currency means that cybersecurity has become a critical part of financial literacy.
Reports from PwC and the World Economic Forum on cybersecurity in the GCC show that the region is experiencing a rapid digital transformation, which, while beneficial for the economy, also increases the risk of cyber threats.
According to research from Kaspersky, parents should combine financial education with digital protection to help their children manage their money and stay safe from online threats.
Data from a "Growing up online" survey showed that 31 per cent of parents in the UAE reported losing money due to their child’s online behaviour, while 19 per cent said their child’s device was infected with a virus.
Without an understanding of online risks, children can fall victim to scams, such as phishing disguised as giveaways, fake in-game deals, or hidden subscription fees. By teaching children about digital safety, parents can equip them to defend against these cyber threats.
According to Andrey Sidenko, a web content analyst at Kaspersky, "When we talk about financial literacy for children, we can’t stop at teaching them how to budget or save. Their money is already digital, which means their first financial decisions happen online: in games, apps, and digital wallets. Without cybersecurity awareness, those lessons remain incomplete."
Tips for parents
Here are some key tips for parents from Kaspersky on how to teach children to handle money responsibly and securely:
Set clear spending limits: Help your children understand budgeting by setting limits for typical expenses like school supplies, entertainment, and food. Use percentages to explain how their money should be divided and discuss how in-app purchases and hidden fees can quickly drain their balance
Use secure payment methods: Instead of cash, consider child-friendly bank cards or digital wallets that offer parental controls. These tools enable you to set spending limits, receive instant purchase alerts, and track transactions in real-time. It is also important to secure the devices used for these payments with a cybersecurity solution
Secure devices and accounts: Teach your children about the importance of strong account security. This includes enabling two-factor authentication for online purchases, using a password manager, and creating complex passwords that are not reused across different platforms
Keep track of subscriptions: Many apps and games use recurring payment models. Teach your child to always ask before starting a free trial and to look for auto-renewal settings. Regularly review your family’s app store purchase history and email for renewal notifications
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