As spending goes digital, parents rethink how they teach kids about money

New national study finds nearly half of parents have been surprised by a child's purchase with digital, "invisible" money

COLUMBUS, Ohio – July 15, 2026 – Bread Financial® (NYSE: BFH), a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions, today released findings from a national study exploring how parents are teaching their children about money in an era increasingly defined by digital spending. The study found that while the majority of parents and guardians of children in grades K-12 (91%) feel confident teaching their children about money, nearly half (46%) report being caught off guard by an unexpected purchase their child made using "invisible" money - digital, non-cash payments and spending options like in-app purchases, digital wallets and online transactions.

For many families, the first sign of trouble comes as an unexpected line item on a statement. Nearly half of parents (46%) say they've been caught off guard by how much their child spent using "invisible money," whether through in-app or in-game purchases (43%), an accidental charge (27%) or a recurring subscription that quietly renewed (24%). Three in 10 parents (30%) said the experience left them frustrated, and about a quarter (26%) felt stressed. Yet the study found that most parents don't let the moment pass without action. More than half (57%) resolved to turn the surprise into a teachable moment, and 35% were left motivated to rewrite the rules around spending.

“Every generation of parents has had to adapt to evolving financial realities, but the rise of digital spending has introduced an entirely new curriculum,” said Jessie Calaway, senior manager, thought leadership & consumer insights at Bread Financial. “Our research shows that parents are engaged and motivated and, in many cases, they’re learning alongside their children. Understanding these new financial realities and discussing them openly is key to raising the next generation of financially confident adults.”
    
Invisible Money: A New Frontier for Family Finance
While parents are covering the basics, invisible money is where the lesson plan gets more complex. When it comes to what children struggle to understand most, parents point to a few consistent sticking points:

• 43% of parents say the hardest concept of invisible money for kids to grasp is that small purchases can add up quickly.
• 31% of parents say children still struggle to understand that digital spending counts as real money.
• 26% of parents worry that their children are unable to spot online scams or misleading offers when spending digitally.

Difficulty understanding invisible money isn’t stopping parents and their young children from using it. More than half of elementary and middle school students have used gift cards (57%, 63%), spent in online games (51%, 56%) and made in-app purchases (51%, 58%). Digital payment method use also increases with age, with high school students significantly more likely than their elementary counterparts to have used peer-to-peer payment apps like Venmo or Zelle (56% vs. 29%) and digital wallets (46% vs. 26%).

While 42% of parents believe their children spend digital and physical money at the same rate, 30% believe digital funds are spent more quickly. This belief is even more common among dads (34%) and high-income households (35%). When it comes to managing their children's digital money habits, parents are taking an active role: half (50%) use parental controls or family settings to monitor transaction activity and pre-approve digital purchases, and nearly as many (48%) require their children to earn money through chores, an allowance or a job before spending digitally.      

With 46% of parents noting that a spending tracker tool would simplify conversations around invisible money, the findings show that combining the right digital tools with clear guardrails can help transform everyday spending into meaningful money lessons.