A new national study finds that nearly half of parents were surprised by a child’s purchase using digital, “invisible” money
COLUMBUS, Ohio – July 15, 2026 – Bread Financial® (NYSE: BFH), a technology-focused financial services company that offers simple, personalized payment, credit and savings solutions, today released results from a nationwide study examining how parents are teaching their children about money in an increasingly digital-spending era. The study found that the majority of parents and guardians of children in grades K-12 (91%) feel confident about teaching their children about money, almost half (46%) report being surprised by an unexpected purchase their child made using “invisible” money – digital, cashless payments and spending options such as in-app purchases, digital wallets and online transactions.
For many families, the first sign of trouble is an unexpected item on a bill. Almost half of the parents (46%) say they were surprised at how much their child spent with “invisible money,” whether through in-app or in-game purchases (43%), an accidental charge (27%) or a recurring subscription that is silently renewed (24%). Three out of ten parents (30%) said the experience frustrated them, and about a quarter (26%) felt stressed. However, the study found that most parents do not let the moment pass by without doing anything. More than half (57%) decided to turn the surprise into a teachable moment, and 35% were motivated to rewrite the spending rules.
“Every generation of parents has had to adapt to changing financial realities, but the rise in digital spending has introduced a whole new curriculum,” he said Jessie CalawaySenior Manager, Thought Leadership & Consumer Insights at Bread Financial. “Our research shows that parents are engaged, motivated, and in many cases learning alongside their children. Understanding and openly discussing these new financial realities is key to raising the next generation of financially confident adults.”
Invisible Money: A New Frontier for Family Finance
While parents get to grips with the basics, the lesson plan becomes more complex when it comes to invisible money. When it comes to what children need to understand most, parents point out a few recurring points:
- 43% of parents say the concept of invisible money is the hardest for children to understand because small purchases can quickly add up.
- 31% of parents say children still struggle to understand that digital spending counts as real money.
- 26% of parents fear that their children will not be able to recognize online fraud or misleading offers when spending digitally.
The difficulty of understanding invisible money does not stop parents and their young children from using it. More than half of elementary and middle school students have used gift cards (57%, 63%), issued in online games (51%, 56%) and in-app purchases made (51%, 58%). The use of digital payment methods also increases with age, with high school students significantly more likely than elementary school students to have used peer-to-peer payment apps such as Venmo or Zelle (56% vs. 29%) and digital wallets (46% vs. 26%).
While 42% of parents believe that their children spend equal amounts of digital and physical money, 30% believe that digital funds will be spent faster. This belief is even more common among fathers (34%) and high-income households (35%). When it comes to managing their children’s digital money habits, parents take 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 it digitally.
With 46% of parents noting that a spending tracking tool would simplify conversations about invisible money, the results show that combining the right digital tools with clear guardrails can help turn everyday expenses into meaningful money lessons.
https://newsroom.breadfinancial.com/invisible-money-press-release
