UAE: Strong Passwords, Child-Friendly Bank Cards How To Protect Kids' E-Money

Pocket money is no longer just coins and notes - today, it's going digital. As more parents choose to give their children allowances digitally , experts warn that kids need to learn online safety along with financial literacy.

As reported by Khaleej Times, some parents say e-money is easier, more practical, and more convenient. But while digital money gives children a sense of financial independence, cybersecurity should also be considered a fundamental part of financial literacy, according to Kaspersky, a Russian-based global cybersecurity and digital privacy company.

A 2024 study conducted by research consultancy Toluna and requested by Kaspersky, showed that 76 per cent of children have their own smart devices, such as a phone or a tablet. Meanwhile, 31 per cent of parents reported in the survey that they had lost money due to their children's online behaviour, and 19 per cent of them said that their child's device had been infected with a virus.

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Expert advises that parents opt for child-friendly bank cards or digital wallets to keep track of transactions and to block certain categories. They should also install a cybersecurity solution, as online stores can be easy targets for malicious actors.

Another tip suggested by experts at Kaspersky involves enabling two-factor authentication (2FA) for apps that use online purchases. Teaching children the importance of strong passwords can also be a valuable step in protecting their finances and overall online presence. Additionally, using a password manager can help in the case that access is hindered.

“When we talk about financial literacy for children, we can't stop at teaching them how to budget or save,” said Emad Haffar, Head of Security Consultant Team, Meta at Kaspersky.

"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. Helping kids recognise scams, protect their accounts, and use secure payment tools is just as important as teaching them the value of money itself,” he added.

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