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Tags: digital kids allowances | 3-d metaverse websites | walmart | nike | roblox

Kids Shun Cash for Digital Allowances

Kids Shun Cash for Digital Allowances

By    |   Friday, 02 December 2022 02:11 PM EST

Kids don’t want your money.

Cash, that is, when it comes to their allowances. “Can you convert this to Robux?” has become the popular refrain, even of toddlers, The Wall Street Journal reports.

Kids especially want to be paid in the online currency of videogame Roblox Corp., which runs a tandem marketplace for virtual goods, many of them representing luxury items, priced at less than $10.

Kaylee Robleto, 12, recently bought a virtual Louis Vuitton handbag for less than $5 on Roblox, while her 10-year-old sister, Ginelle, snagged a virtual Gucci jacket.

Children are also gravitating to merchandise from Nike’s Nikeland, Pokemon Go’s PokeCoins and Microsoft’s Minecraft game’s Minecoins.

Walmart even has Walmart Land, where kids can find “verch,” or virtual merchandise, such as headphones and the clothes that its Walmart Land avatars wear.

Starting next year, many of these videogames/online shopping sites are going to begin selling advertisers portals, where users can readily enter their own websites.

Even more captivating, many of these kids sites, like that of Roblox, are mini metaverses. Already, Roblox has 60 million daily users, half of whom are under the age of 13. Last year, the site had revenues of $1.9 billion, six times the amount it had in 2018.

“We have just scratched the surface of what it means to be a thriving and monetizing economy in these 3-D immersive experiences,” Manuel Bronstein, Roblox chief product officer, said at the company’s investor day in September.

“Nike is meeting young athletes, wherever they are,” said John J. Donahoe, Nike chief executive officer, on an earnings call last year when announcing Nikeland.

The children like the convenience of virtual shopping, which means they can browse for toys and goods almost anywhere, and parents don’t see the harm of children fulfilling their wishes at such little cost—even if the videogames and stores their children are hanging out at double as ads.

Parents also see an upside to the financial lessons the digital currencies are teaching their children. In 2021, children between the ages of 12 and 17 spent an average of $92 a month online, according to Forrester. That’s double what they spent in 2019.

“The concept of a piggy bank or even cash is really archaic,” says Titania Jordan, chief parent officer at Bark Technologies, which monitors children’s online activities.

© 2023 Newsmax Finance. All rights reserved.

Kids don't want your money....Cash, that is, when it comes to their allowances.
digital kids allowances, 3-d metaverse websites, walmart, nike, roblox
Friday, 02 December 2022 02:11 PM
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