Teens Can Run Up HUGE Bills On Cell Phones
We live in a changing world. Our phones are no longer relegated to being merely a voice and text communication tool, but are now a full fledged commerce tool allowing individuals to purchase content for their phones or pay for items through their cell phone. With something called "mobile commerce" your phone is a gateway to purchase ring tones, download music, get stock quotes, movie tickets and driving directions. Companies advertise that through the purchase of their products and a monthly service you can turn your stove on or house lights off all from the convenience of your phone. PayPal recently announced "Wherever you are - on a sidewalk, in the bleachers, on a couch - you can make PayPal purchases" all through your cell phone.
We live in a changing world. Our phones are no longer relegated to being merely a voice and text communication tool, but are now a full fledged commerce tool allowing individuals to purchase content for their phones or pay for items through their cell phone. With something called "mobile commerce" your phone is a gateway to purchase ring tones, download music, get stock quotes, movie tickets and driving directions. Companies advertise that through the purchase of their products and a monthly service you can turn your stove on or house lights off all from the convenience of your phone. PayPal recently announced "Wherever you are - on a sidewalk, in the bleachers, on a couch - you can make PayPal purchases" all through your cell phone.
There are basically two types of commerce. First, products or services that typically appear on your phone (but not always) and are automatically billed to your phone account. This works in a similar manner to its predecessor, the 900 phone numbers. Second, through a separate account typically set up via the internet through a financial vendor such as PayPal, a phone text message is sent, or a special 800 number is called and with an accompanying password a payment is sent to anyone with an account from the same financial vendor.
With phones appearing in the hands of so many teenagers some vendors may perceive these teens as ill prepared to make wise financial decisions and therefore easy prey. The same parent who does not trust their child with a credit card may unwittingly give them a tool with equal buying power. Are you instructing your children in how to avoid poor financial decisions or even internet scams when you place a phone in their hands? Like the 900 number fiasco from a few decades ago the new cell phone based mobile commerce has the potential to cost ill prepared consumers plenty.
Here are some simple rules to teach your teen before handing them a cell phone:
With phones appearing in the hands of so many teenagers some vendors may perceive these teens as ill prepared to make wise financial decisions and therefore easy prey. The same parent who does not trust their child with a credit card may unwittingly give them a tool with equal buying power. Are you instructing your children in how to avoid poor financial decisions or even internet scams when you place a phone in their hands? Like the 900 number fiasco from a few decades ago the new cell phone based mobile commerce has the potential to cost ill prepared consumers plenty.
Here are some simple rules to teach your teen before handing them a cell phone:
- Do not allow mobile commerce or purchases without prior permission. When my children learned to drive I gave them a gas credit card. We also gave them a strict list of what could and could not be purchased on the card. Similarly, make it clear exactly what is and is not acceptable with phone commerce. A routine review of the cell phone bill should reveal any non-compliance to this request. Unless you would trust your child with a credit card, don’t allow them to set up a PayPal or other similar account on their phone.
- No "Votes" or "Contests". Your child should not participate in advertisements using text messaging until it is determined there is no fee associated with the text. Several "contests" charge the phone a fee to enter in the same way a local charity charges for a raffle ticket.
- Check each offer carefully. Clearly understand if you are making a one time purchase or are buying a subscription service. Know your rights and how to cancel any subscription services. Services such as ring tone download or driving directions vary depending on the vendor you choose.
- Only purchase from reputable companies. If the deal seems too good to be true – IT IS!
- Never disclose personal information. Hopefully you have already taught your children this practice, however, make sure they understand text messaging and internet from their cell phone are included in the personal information ban.
- Never allow “private†conversations while lending his or her phone. If your child lends their phone to a friend, instruct him or her to keep the friend in sight and return it immediately. This will prevent all kinds of abuse including mobile commerce and inappropriate text messaging, etc.
Cell phones are a great comfort to parents and extremely useful to our independent teens. However, as technology expands and brings more and more functionality and options to the cellular phone, parents should keep abreast of changes and prepare their child for these changes. Mobile commerce is no exception. If you find your child has not made wise choices check with your wireless provider, some companies provide an option to prohibit certain mobile commerce transactions.
Have you had any experiences? Share them with us!
(reprinted from thriftytimes.com, used by permission)
Have you had any experiences? Share them with us!
(reprinted from thriftytimes.com, used by permission)