‘$200 on Fortnite’: New financial literacy program in Windsor aims to counter digital overspending

A program is launching in Windsor-Essex, helping kids keep track of their money in the digital world. CTV Windsor’s Sanjay Maru has more.

A new financial literacy program in Windsor-Essex is targeting a growing challenge among young people: Losing track of money in a digital world.

For many teens, the use of virtual currencies in popular games such as Roblox and Fortnite can blur the line between digital purchases and real-world money.

“It’s not like $1 equals one Robux or one Fortnite skin. So, it’s easy to lose track of how much you’re spending and some people tend to spend more,” said 14-year-old high school student Shainavi Duraimurugan.

“I’m sure the parents, or the person who actually earned that money, would probably spend it better.”

To address poor spending habits among youth and young adults, Youth Diversion Essex County has launched “Money Smarts for Life,” a hands-on financial literacy program for people ages 16 to 26.

The program focuses on practical skills, including budgeting, saving for rent, understanding online banking, and managing a credit score.

Executive Director Joanna Conrad says the organization is seeing more cases where online spending catches families off guard.

“We have parents coming through saying, ‘My child racked up hundreds, if not thousands of dollars on our credit card’ — on Roblox or some other platform,” said Conrad.

The disconnect between young people and their financial literacy has become worsened over the years, Conrad added, because the way people pay for things today makes it even easier to spend without thinking twice.

“Oftentimes we just save our credit cards to everything from Amazon to whatever platform you’re on, and it just takes one scan of a QR code to make a purchase, or one click of a button.”

Microtransactions in games like Roblox and Fortnite have become a common part of teen culture, according to high school students who spoke with CTV News.

“My own friend said, ‘I spent $200 on Fortnite.’ I just looked at him and I was like, ‘Are you serious right now?’” said 17-year-old Ayla Wilson.

Wilson said it’s important for people in her age bracket to understand that making poor financial choices now can lead to bigger problems in the future.

“If we’re already starting to lose track of our money and how much money that we actually are spending, we’re going to be more focused on silly things, and that could also lead into debt,” she said.

Thanvi Jayakumar, 14, said peer pressure plays a major role in how youth and young adults spend their money — especially when it comes to online gaming.

“The more real money you spend on a game, the better stuff you get in the game. So, when you’re talking to your friends, you can brag, ‘Oh, I got this and you don’t,’ There’s a bit of a ‘cool’ factor for some kids,” said Jayakumar.

“Some kids are aware of how they use their money. But there’s always some kids who don’t really respect it, like buying skins and booster packs on games. They don’t care about how much of their parents’ money they spend.”

Enrolment is currently open for the Money Smarts for Life program, with families able to contact Youth Diversion Essex County directly or submit a referral through their website.

In a statement, Fortnite developer and publisher Epic Games said it offers players protections against unwanted purchases including “instant purchase cancellations, self-service refunds, and a hold to purchase mechanic” that confirms a player’s intent to buy.

“If a player indicates they’re under 13 in Ontario, they will have a Cabined Account and cannot make real-money purchases until their parent provides consent,” the company said.

“Using Epic’s Parental Controls, parents can require their PIN to be entered to approve in-game purchases using Epic Games payment.”