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According to the Pew Research Center, 43 percent of teens with Internet access are shopping online. While adult shoppers can often find better deals and more choices on the Internet, experts say the web may not be the best shopping option for teens.

Is it easy for teens to spend too much money, online?

“Yes. Yes it is,” says 19-year-old Rahil Durrani.

“I know lots of people that they’ve gone into debt because of how much they have been spending online,” answers 19-year-old Anna Nicholson.

One reason some kids overspend is that stores on the web are always open.

“I mean I buy jeans ridiculously,” says 18-year-old Ariel Leslie. “It’s crazy. In the morning, like 11 o’clock, when I wake up, I buy jeans.”

Another problem is using a credit card.

“If you go online and you have a credit card, you can spend, spend, spend, and you can continue to spend until you’ve reached your limit possibly, which may be way more than you ever planned or budgeted on spending,” says Todd Mark, spokesperson for the Consumer Credit Counseling Service.

Mark says that, at the mall, you can see what you’ve purchased – and realize that you may have spent too much money. “Many times people will stop shopping, because they can’t carry any more,” he notes.

But online, the shopping doesn’t always feel real. The items may take weeks to arrive, and kids may forget they’ve made a purchase.

“So you can continue to shop and shop and shop and you don’t get that psychological payoff,” says Mark.

Before kids go online, he says, parents should help them decide what to buy, and how much to spend. Also, wait at least a day before making a purchase.

And, he says, teach kids to use the Internet to their advantage.

“Shopping online is fantastic for comparison shopping, because never before have you had the ability to see all the prices offered from everybody at one time,” says Mark.

Another piece of advice?

“Just go online for one thing at a time, definitely,” says Robyn Cameron, a 19-year-old college student. “Just go in with, like, a goal – and then leave.”

What We Need To Know

• Before making an online purchase, parents should ask kids to consider whether they really need the item. Comparison-shopping is a great idea. However, if someone is offering a price that seems too good to be true, kids should ask themselves why the company is able to offer such a good price. (Todd Mark, Spokesperson, Consumer Credit Counseling Service)




• To avoid getting ripped off, kids should stick with stores and brand names they trust in real life. Children should research any online merchant they do not know. The company should have a physical address. Very rarely will you find a reputable company that only has a P.O. Box and no physical location. Also, the company should be licensed in its home state. (Todd Mark, Spokesperson, Consumer Credit Counseling Service)




• Do a Internet search for “complain” and the company name, or “rip-off” and the company name. If people have been scammed, they will likely want to warn others. (Todd Mark, Spokesperson, Consumer Credit Counseling Service)




• Only enter your credit card information on secure websites. These typically start with “https:” as opposed to “http:”. Also look for a padlock icon in the bottom right hand corner of the screen. (Better Business Bureau Online)




• Make sure the company offers a phone number for customer service, in case you have a problem. (Federal Trade Commission)




• The best way to pay for items online is with a credit card, and not a debit card. Under federal law, if you have an unauthorized charge on your credit card, your liability is limited to $50. (Federal Trade Commission)




• Many experts seriously doubt whether teens need their own credit card. If you believe your teen is mature enough to handle one, make sure they understand how quickly debt can accumulate. Use debt calculators on various financial websites to show teens what happens if they only make the minimum payment. (Janet Bodnar, financial columnist and author)




• Parents who co-sign for a teen’s credit card can set a low limit. That way if the teen makes a mistake, the bills will not get out of control. Have the lender agree in writing to notify you, if the child misses a payment. (Federal Trade Commission.)




• Set ground rules for credit card use. Charge only what you can afford to pay back – a credit card is not free money. Ask your teen to consider each purchase as a loan. Would they really go to a bank and request a loan to buy a sweater or pair of jeans? Have teens pay their bills in full each month. If for some reason the entire bill cannot be paid in full, never pay only the minimum due. (Jennifer Openshaw, CEO, Family Financial Network)

Resources

• Better Business Bureau Online




• Consumer Credit and Counseling Service




• Federal Trade Commission

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