Cost traps for young people and adolescents
Dangerous clicks: How streaming and shopping can drive young people into debt
It often starts small: a streaming subscription here, a few in-app purchases there - and suddenly money gets tight. As a young person, you enjoy a lot of freedom, but you also have financial responsibilities. Cell phone contracts, streaming subscriptions, paid online games and online shopping can quickly become a debt trap. On this page, you can find out how to recognize the risks.
Cost traps in everyday life
Many small expenses can add up faster than you think. Services and offers that regularly charge small amounts seem harmless at first glance, but can quickly become a financial burden. Here we explain how to recognize typical pitfalls and keep your finances under control.
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Cell phone contracts: Beware of hidden costs
A new smartphone with an attractive contract sounds good. However, such offers often come with long contract terms, high monthly fees and hidden additional costs. It's worth taking a closer look at the small print. Think about whether a prepaid plan or a cheaper contract without an expensive smartphone isn't the better choice for you.
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Streaming subscriptions: small amounts that add up
Music, films, series - it's hard to imagine everyday life without streaming services. But do you have an overview of how much you spend on them every month? There are often several subscriptions running in parallel, which together can tear a hole in your budget. Tip: Think about which services you really use and cancel the others.
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Online games: be careful with small purchases in games and apps
Many games offer microtransactions such as the purchase of skins, loot boxes or virtual currencies. What starts out as a small expense can quickly add up. Pay-to-win mechanics also encourage you to spend money.
Gaming subscriptions for PC or games consoles can also become expensive if they are not used or only used occasionally. It's best to set yourself a fixed budget for your gaming expenditure. The same applies here: if you have several subscriptions, think about which one you really use and cancel the others. -
Online shopping: better to shop with a plan
Online shopping tempts people to make impulse purchases. It's convenient to order products at the click of a button and have them delivered to your home. However, this often leads to us buying more than we actually need. Another disadvantage: credit cards, payment services such as PayPal or the "Buy Now Pay Later" function mean that many people lose track of their spending. Tip: Make a list before you buy something and think about whether you really need the item.
How you are influenced
The psychological tricks behind many products and offers can easily lead to you spending more money than you planned. Here are some mechanisms you should be aware of:
- Reward systems: Especially in online games, rewards and progress make you want to keep playing. This principle can tempt you to keep spending small amounts on additional content.
- Loss prevention:
Premium achievements are often unlocked for free for a short time as a reward, allowing you to progress faster in the game. In order not to "slow down" your development in the game again, you will have to pay for the premium achievement after it expires. This may result in you continuing to spend money to keep your development in the game at the faster level. - Social pressure: Friends or communities on social media often showcase products or experiences that are associated with success or popularity. This can make you want to buy things to fit in or keep up.
- Advertising by influencers: Many influencers present products in a way that is not immediately recognizable as advertising. These subtle messages unconsciously influence your purchasing decisions and can tempt you to buy things you don't actually need.
- Hidden costs: Subscriptions or in-game purchases seem cheap at first, but their long-term costs add up. A premium service for €0.99 for 3 days looks cheap at first. However, if you want to use the service for a whole month, the costs quickly add up to €10.00 per month. Think about whether the service is really worth that much money.
Get an overview
Do you often lack financial awareness in everyday life? You're not alone! It's important to know how to keep an eye on your income and expenditure.
We've put together a few tips for you:
- Create a budget: Write down what you earn and spend each month.
- Check your contracts: Mobile phone or streaming subscriptions seem cheap, but do you really know how much you spend on them each month?
- Plan your money: Set aside small amounts to cover unforeseen expenses.
- Keep an overview: Use practical tools and apps to help you keep an eye on your income and expenses.
Where can we find help and advice?
If you realize that things are getting tight financially, talk to someone. This could be your parents, someone you trust or a teacher. Debt should not be a taboo subject!
Don't hesitate to seek professional help, for example here:
- The Verbraucherzentrale NRW offers free advice on money and credit problems. In person or by telephone.
- Our Familienlotse also helps you to find the right debt advice service in your area.
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