MONEY

Facebook’s Next Battle Is Wrestling Your Credit Card Number from Amazon

Facebook logo with game pieces on top of it
Berliner Verlag/Archiv—AP Images

Advertisers will pay big bucks to get in your Facebook newsfeed. But will you really buy their products?

And they said Facebook couldn’t sell ads. Ha!

In its quarterly earnings report on July 23, the social network posted a blockbuster figure: $2.68 billion from advertising in the second quarter alone, a 67% increase from last year. About 62% of that revenue came from mobile devices.

With numbers like that, Facebook has started breathing down Google’s neck. eMarketer expects Facebook will capture 18.4% of the mobile ad industry this year, with Google holding onto 40% market share.

Facebook is gaining ground in the battle over mobile ads. But the next battle could be on a completely different front, against a completely different player: Amazon. Facebook’s new “buy” button, announced on July 17, will let Facebook users order products simply by clicking a button on a Facebook ad. The feature requires that users give Facebook their credit or debit card information to complete the transaction without ever leaving the social network.

Of course, Facebook has tried e-commerce before. In the past, the social network has asked users to open their wallets for virtual games and gift cards. But as more eyeballs moved to mobile devices, those efforts flopped. Even though advertising revenue has skyrocketed since the company’s IPO, revenue from “payments and other fees” (read: Farmville) has stayed relatively flat.

image

But here’s why the “buy” button is different. Facebook doesn’t plan to sell its own products. It plans to sell enhanced advertising. Facebook’s founders are adamant that the buy button is just a way to “streamline” the process of buying from other companies.

“Commerce is really important, and it’s a growing part of our business,” COO Sheryl Sandberg said during yesterday’s earnings call. “But I don’t think people should confuse that with Facebook selling things directly. The more people discover things from a newsfeed and go on to purchase, the more important we are in driving commerce. That doesn’t mean we’re going to, or have to, sell products.”

“Our main business is advertising,” CEO Mark Zuckerberg added. “To the extent that we do payments, it’s related to that.”

When it comes to the “main business,” Facebook has a clear competitive advantage: its 1.32 billion users worldwide. A good proportion of those people are total addicts. Zuckerberg says that on average, users spend 40 minutes a day on Facebook. Even people who claim to dislike Facebook won’t shut down their accounts.

“We believe hundreds of millions of users face switching costs that keep them from leaving Facebook,” Morningstar analyst Rick Summer wrote in a recent report. “People are unlikely to leave unless they can take their network of friends, content, and applications with them.”

Still, Facebook doesn’t have a good track record when it comes to protecting users’ privacy. One poll found that only 5% of people really trust Facebook with their personal information. Why give Facebook your credit card number and purchase history?

“With anything that Facebook does, there are always questions about how people’s privacy is going to be protected and what sort of data and information is shared,” says Debra Aho Williamson, principal analyst at eMarketer. “With e-commerce there’s a lot of potential for questions because people are exchanging their credit card information, their personal information, making Facebook aware of things they’re actually buying – that’s data Facebook can use for advertising or creating other products down the line.”

In a way, Facebook’s greatest asset – detailed information about your likes, dislikes, and all of your social connections – is also its greatest vulnerability. If Facebook could tell you which products your friends like, maybe you’ll be more likely to buy those products within the social network itself (with just two clicks!). Or maybe your friends will be totally freaked out that you know what they’re buying.

“It’s one thing for me to give Big Brother information about every purchase I make,” says Oded Netzer, associate professor at Columbia Business School. “It’s another thing when Big Brother wants to share it explicitly or implicitly with my friends.”

Meanwhile, Facebook’s competitors are also arming themselves for this next fight. Amazon and Twitter recently teamed up on an initiative that lets you add products to your Amazon cart by replying to certain tweets. And just last week Twitter announced that it planned to buy CardSpring, a company that helps developers incorporate payments systems into their apps.

One other piece of news could spell trouble for Facebook. While mobile ad revenue is way up, impressions are down 25%. That’s because users will only put up with so many ads when they’re scrolling through their newsfeeds on their phones – so Facebook has a relatively limited amount of space to sell. (On desktops, the right-hand rail provides more available ad space.) Over the long-term, Facebook plans to ramp up video ads, monetize Instagram, and test the “buy” button. But the question remains: If users primarily use Facebook to interact with their friends, how much e-commerce will they really tolerate?

“This whole idea of making money from social networks has not worked well,” Netzer says. “More and more companies are finding that people interact with each other not for the purpose of talking about products – they’re just interacting with each other. The products are interrupting this discussion.”

Facebook may be winning the advertising war. But if Facebook’s revenue has skyrocketed on the premise that social networks are the best place for businesses to reach new customers, then the “buy” button may finally put that theory to a test.

MONEY Tech

Here’s a Look at How Apple and Microsoft Really Stack Up

On Tuesday, both Apple and Microsoft released their quarterly earnings reports, with Apple showing a 12.3% profit jump—and Microsoft showing a 7.1% decline. How do they compete on other measures? Here's a look at how the two tech giants stack up.

MONEY Raises

Why You Might Get a Raise Soon

140618_money_gen_12
iStock

Good news for workers: Employers think the future is bright

If you’re looking for a raise — or a job — some good fortune might be coming your way. In the second quarter of this year, more employers reported rising wages and expanding payrolls, according to a new survey from the National Association for Business Economics. And businesses expect the economy will keep growing. A quarter of survey respondents now predict that real GDP will go up more than 3% next year.

For its quarterly business conditions survey, the NABE polls its members, which include business leaders, consultants and economists in a range of industries. They say they’re feeling more confident about the state of the economy — and that’s good news for workers.

Ken Simonson, chief economist for the Associated General Contractors of America, says as sales have gone up, businesses have finally needed to hire more employees to keep up with demand. Plus, now that Congress has averted a series of fiscal crises, employers think the economy will continue to grow, so they’ve started making investments again.

That includes investments in labor: This quarter, 43% of NABE’s respondents said their firms offered raises. That’s up from this time last year, when only 19% of respondents saw higher pay. A third of the respondents expect their businesses will raise salaries going forward. Also, 36% of respondents said their firms hired more people this quarter, and 37% expect their businesses to increase payrolls over the next three months.

“Employment has been rising, the unemployment rate has been coming down pretty sharply, so there’s no longer that deep bench of experienced workers,” Simonson says. “Increasingly, companies are having to pay a premium in order to have the best workers, to get anybody who has gone off to a competitor.”

The bad news? Overall demand for workers is still pretty low. Only 22% of respondents said they have a shortage of skilled workers. Compare that to before the recession: In January 2006, 44% of respondents needed more skilled workers.

But while the labor market remains slack, Simonson thinks the trends are positive.

“We’ve been hearing for the past year about companies having trouble finding workers,” Simonson says. “I do expect that at some point this year, we’ll see an acceleration in wage increases.”

MONEY Debt

Have You Conquered Debt? Tell Us Your Story

Have you gotten rid of a big IOU on your balance sheet, or at least made significant progress toward that end? MONEY wants to hear your digging-out-of-debt stories, to share with and inspire our readers who might be in similar situations.

Use the confidential form below to tell us about it. What kind of debt did you have, and how much? How did you erase it—or what are you currently doing? What advice do you have for other people in your situation? We’re interested in stories about all kinds of debt, from student loans to credit cards to car loans to mortgages.

Please also let us know where you’re from, what you do for a living, and how old you are. We won’t use your story unless we speak with you first.

MONEY Tech

QUIZ: What’s Your Perfect Cellphone Plan?

Fed up with your cellphone carrier? There's most likely a better, cheaper plan than the one you have today. Take our quiz to find the right one.

Check out all of MONEY’s Best Cellphone Plans of 2014. Thinking about switching cellphone carriers? Do these four things first.

MONEY Tech

The Best Cellphone Plans of 2014

No matter what type of cellphone user you are, MONEY found a mobile plan that's right for you.

201407_CEL
Paul Windle

Haven’t shopped for phone service recently? You’re in for a shock. “In the past year plans have changed more than in the previous five,” says ­Logan Abbott of comparison site Wirefly.com.

Forget choosing among the Big Four and their handful of offerings: Today’s market is made up of an overwhelming mob of carriers and options. And as if that isn’t confusing enough, the recent news that the Federal Trade Commission is accusing T-Mobile of “cramming,” or billing customers for unauthorized services, may have you wondering if your provider is ripping you off. (The short answer: It may have in the past, but these days, probably not. For more, read Time’s story on cramming and how to spot it.)

Perhaps the biggest change to the industry is the shift away from two-year service contracts. Now you can choose a contract plan, with a discounted phone and high monthly rates, or a cheaper option that requires you to pay upfront for a new phone or bring your own. (Phone compatibility varies.) We found that noncontract plans came out on top in nine of 10 categories. Plus, the longer you keep your phone on a noncontract option, the better the deal gets.

The rise of smaller carriers also looks like good news. These firms have finally become a viable option, with access to the newest phones and reliable coverage, thanks to arrangements that let them use big companies’ nationwide networks. One potential downside is that the larger firms usually prioritize their own users, so the little guys’ customers may have to contend with less coverage or slower data speeds, says Mike Dano of cell news publication Fierce Wireless. Unless you use a ton of data, though, it’s not much of an issue.

Overall, cell coverage has improved. Verizon and AT&T still generally have the broadest networks, though “everyone has gotten better in the last six to 12 months,” says Bill Moore, president of service-rating firm Root Metrics. To see which carriers’ networks have the best performance where you live, go to Rootmetrics.com and enter your address.

For cellphone users, this all boils down to one thing: There’s probably a better, cheaper plan than the one you have today.

To help you find it, MONEY parsed more than 75 options from a range of carriers. We started by grouping plans into categories based on features such as talk, text, and data packages. Next, we added up the price of two years of service, plus the cost of a 16GB iPhone 5s for each plan member for all 75+ option. We used the phone price offered by the carrier (full price for non­contract plans and subsidized prices for contract options), then sorted these results by price. Finally, we factored in phone choice, as well as network quality and customer service scores from Root Metrics and J.D. Power.

All family plans are for four people. We consider up to 1GB of data per person light use, 2GB to 3GB average, and 5GB or more heavy. All plans are chosen based on domestic use. For information about international use, read our story on using your cellphone abroad.

Best for Light Callers

If you only use your phone for calls, texts, and occasional web surfing, you likely don’t need more than 1GB of data. Cricket offers you the best price.

Individual Plan:
Cricket Basic
Family Plan:
Cricket Basic
Monthly bill $40* $100*
Two-year cost with phones $1,610* $5,000*
Can you bring a phone? Yes Yes
Minutes Unlimited Unlimited
Texts Unlimited Unlimited
Data 500MB 500MB per person
Data overage? Speed slows Speed slows
Network AT&T 4G LTE AT&T 4G LTE
Comment Smartphone options start at $50 Includes the option to
pay off new phones over time

Best Individual Plan: Cricket Basic

Sign up for auto bill pay, and this plan drops to $35. Cricket, now owned by AT&T, offers a range of phones, and, like many noncontract options, lets you bring your own. Go over your data limit? The carrier will slow your service rather than charge you extra.

Glitch: Cricket taps into AT&T’s network, but its data speed is slower than that of the larger carrier.

Best Family Plan: Cricket Basic

For a family that doesn’t use that much data, Cricket’s price is a head-turner—especially when you consider that it includes taxes and fees. The carrier’s use of AT&T’s cell towers gives it greater reach than many providers in this price range.

Glitch: Unlike the majority of family options, you cannot add tablets or other devices to this plan.

Best for Typical Users

Do you use your phone to post on social media, browse the web, and get directions when you’re on the move? Chances are you still only need 2GB or 3GB a month. These plans will offer you the best value.

Individual Plan:
Straight Talk Unlimited
Family Plan:
T-Mobile Simple Choice 3 GB
Monthly bill $45 $140
Two-year cost with phones $1,730 $5,952
Can you bring a phone? Yes Yes
Minutes Unlimited Unlimited
Texts Unlimited Unlimited
Data 3GB 3GB per person
Data overage? Speed slows Speed slows
Network Multiple 4G LTE T-Mobile 4G LTE
Comment Sold at Wal-Mart and online Will pay your termination fee
if you switch carriers

Best Individual Plan: Straight Talk Unlimited

This plan is just $41.25 a month if you pay for a year upfront. Straight Talk uses all four big carriers; the network you’ll use depends on your phone and area, says Dennis Bournique of PrepaidPhoneNews.com.

Glitch: Like most low-cost carriers, Straight Talk may not allow you to tap into another provider’s network if you venture out of its service area.

Best Family Plan: T-Mobile Simple Choice 3GB

At this price point, it’s a duel between Cricket and T-Mobile, and for those who seek faster data speeds, T-Mobile wins out. Does someone in your clan have a tablet? You can add it, and 1.2 GB of data to use with the device, free through 2014.

Glitch: This network is fast in many metro areas, but it isn’t as broad as those of Verizon and AT&T.

Best for Bargain Hunters

Users who want a ton of data at the lowest possible price should check out these options.

Individual Plan:
Metro PCS Unlimited
Family Plan:
T-Mobile Simple Choice 5G
Monthly bill $60* $180
Two-year cost with phones $2,089** $6,912
Can you bring a phone? Yes Yes
Minutes Unlimited Unlimited
Texts Unlimited Unlimited
Data Unlimited 5GB per person
Data overage? None Speed slows
Network T-Mobile 4G LTE T-Mobile 4G LTE
Comment Top customer service marks from J.D. Power T-Mobile’s network speed has improved recently

Best Individual Plan: Metro PCS Unlimited

This affordable offering from T-Mobile-owned Metro PCS is one of the few true unlimited plans still available today. “Their data isn’t throttled at all, and it is fast,” says Bournique.

Glitch: The carrier doesn’t sell iPhones, but does offer the popular Samsung Galaxy S 5.

Best Family Plan: T-Mobile Simple Choice 5GB

Finding a competitively priced plan that combines a boatload of data with a fast network isn’t easy. Simple Choice, however, is a good pick, particularly in cities, where T-Mobile is at its fastest. The plan also includes a perk for international travelers: free data when abroad.

Glitch: T-Mobile can be patchy in rural areas.

Best for Power Users

If you’re willing to pay more for the most reliable networks, buy one of these plans.

Individual Plan:
Verizon More Everything
Family Plan:
AT&T Mobile Value Share
Monthly bill $120 $210
Two-year cost with phones $3,080 $7,640
Can you bring a phone? No Yes
Minutes Unlimited Unlimited
Texts Unlimited Unlimited
Data 6GB 20GB shared
Data overage? $15 per GB $15 per GB
Network Verizon 4G LTE AT&T 4G LTE
Comment iPhone 5s is $200 Option to pay off phones
over two years vs. upfront

Best Individual Plan: Verizon More Everything

The only contract plan in our guide, this More Everything option costs the same as AT&T’s competitive plan (and less than other high-end Verizon options). Given the choice, we recommend the speed and reliability of Verizon’s widespread 4G LTE coverage for heavy phone users.

Glitch: Watch those hefty overage fees.

Best Family Plan: AT&T Mobile Share Value

Though similar in price and features to Verizon’s noncontract plan, AT&T noses ahead because more phones are compatible with its network. Also, note that AT&T bested its big rival in J.D. Power’s wireless customer care survey.

Glitch: Yes, it’s $40 more than you’d pay with T-Mobile, but AT&T has wider coverage.

Best for Frequent Upgraders

Always want the latest phone? Go with AT&T.

AT&T Next 12
Monthly bill $98
Two-year cost with phones $2,340
Can you bring a phone? No
Minutes Unlimited
Texts Unlimited
Data 2 GB
Data overage? $15 per GB
Network AT&T 4G LTE
Comment Only AT&T has the Amazon phone

Best Plan: AT&T Next 12

Insist on having the latest phone? Try AT&T. Next costs the same as a similar Verizon plan, but AT&T wins, since it’s “the leader in getting the hottest devices,” says CNET writer Maggie Reardon. On this plan you lease your phone over 20 months and must return it if you upgrade sooner.

Glitch: If you haven’t yet paid 60% of the old phone’s value, you must pony up the remainder to trade up to a new model. Still, that’s cheaper than buying two phones at retail price.

Best Basic for Couples

If you and your spouse don’t use your phones a lot, Consumer Cellular has the best plan for you.

Consumer Cellular
1,200 minutes/1 GB
Monthly bill $60
Two-year cost with phones $2,740
Can you bring a phone? Yes
Minutes 1,200 shared
Texts 5,000
Data 1 GB shared
Data overage? 25 cents per MB
Network AT&T 4G LTE
Comment Sold at Sears and online

Best Plan: Consumer Cellular 1,200 Minutes/1GB

This Consumer Cellular option is dramatically cheaper than competitive plans, making it a great pick for couples who don’t spend a ton of time on their phones. The carrier also has a reputation for good customer service. A bonus: Consumer Cellular recently added new phones, including the iPhone, to its device lineup.

Glitch: This is one of the few plans that still caps talk minutes and text messages, though you can pay to add more.

Find a great plan that requires you to switch carriers? Read more about how to break up with your current provider here.

MONEY Tech

Want to Dump Your Cell Service Provider? Do These 4 Things First

Smartphone in the dirt
khoa vu—Getty Images/Flickr

Switching to a new carrier is getting easier. Thinking about a swap? Take these steps before you make the move.

1. Make sure you won’t regret ditching your current plan.

If you are one of the lucky ones who still has a true unlimited data plan, you may want to hold onto it. AT&T and Verizon no longer offer unlimited plans, and users who run over their allotted gigabytes can rack up big charges. Sprint still has a plan it refers to as “unlimited,” but the carrier has started slowing data speeds for its heaviest users. Many smaller carriers will also slow your data speed if you go over your plan’s monthly allotment. T-Mobile still offers an unlimited plan, but at a starting rate of $80 a month, it’s not cheap.

Of course, you may not actually need all that data. Before you make a decision, look back over your monthly bills to get a sense of how many gigabytes you actually use. It may not be as much as you think. “Most of the time people don’t use gobs of data,” says Kirk Parsons, senior director of telecom services at J.D. Power. “Between 1 and 2GB, that’s the sweet spot.”

For light or average users, a new, data-limited plan may meet your needs and cost less than what you pay today. In that case, make a move. On the other hand, you could discover that getting a new plan with a large enough data package would actually increase your monthly bill. If so, sit tight.

2. Find out what a switch will cost you.

Watch out for the dreaded early termination fee. If you’ve signed a two-year contract with one of the big four carriers, you could be on the hook for between $100 and $350, says Jon Colgan, founder of Cellbreaker, a startup company that helps people break their cellphone contracts.

Fortunately, there are a few ways out. A few carriers have started offering early termination fee “buyouts” to encourage customers to dump their old carriers. For example, T-Mobile promises to rebate your fee if you switch. The catch? You have to turn in your old phone and buy a new one from the carrier.

You may be able claim that the carrier breached the terms of the contract, which could allow you to switch without paying an early termination fee. Some examples: your carrier increases your bill or changes the terms of your service, or your phone constantly drops calls. For a price, Cellbreaker will help you through the process.

Now that noncontract plans are offered by most carriers, you no longer need lock yourself into another two-year contract if you’d prefer to have more flexibility in the future.

3. Determine whether your current phone is compatible with the new carrier’s network.

Until recently, if you wanted to jump to a new carrier you often had to buy a new phone. That usually meant paying the full price upfront (an iPhone runs about $650 ) or signing a new two-year contract and paying off the phone over time.

Now there’s another option. Sort of. Assuming your current device still works, you may be able to continue using it, since many providers now allow you to set up other phones on their network. But there’s one big caveat: not all phones will work on every carrier’s network. Today’s big providers (and thus the smaller carriers that buy into their networks) use different technology. So an iPhone you buy from Sprint is wired slightly differently than one purchased from AT&T, says Roger Cheng, the executive editor of technology news site CNET.

Before you make a move, even if you’ve read that you can bring your old phone to the new carrier, call or visit the carrier’s retail store to confirm that your device is good to go. Typically, phones that run on AT&T and T-Mobile’s networks use the same GSM technology and can be used on either provider, says Cheng. However, Verizon and Sprint phones often cannot be used elsewhere. But nuances exist, so it is always worth double checking.

4. See how well the new carrier’s network works in your area.

Obviously, you don’t want to switch only to find yourself dealing with dropped calls or limited web access. But don’t just rely on what you’ve heard from friends about a carrier’s service (or lack of it). This is a rapidly changing area.

Nationwide, Verizon and AT&T still offer the broadest and fastest coverage. But T-Mobile is gaining ground in many cities, where it is at its fastest. You likely care less about the national network, though, than how well the carrier performs where you live. Your best source of local data is RootMetrics. The firm tests call, text, and data coverage, analyzing both reliability and speed, from smartphones across 125 urban areas. For the rest of the country, RootMetrics relies on crowdsourced reports. You can type in any address at rootmetics.com to see the results.

Travel a lot? Or live in a rural area with spotty service? Before signing up with a smaller carrier, find out if the firm offers domestic roaming, which allows you to access another provider’s network when your carrier doesn’t have coverage. Many do not, which could leave you in the lurch.

Considering switching to T-Mobile? The carrier recently announced a program allowing would-be customers to test drive their network with an iPhone 5s for a week for free. Learn more here. Just be sure to return the phone undamaged.

Got through the checklist and ready to make a move? See our list of the best cellphone plans to find one that’s perfect for you.

MONEY Tech

How to Take Your Cellphone Abroad (and Not Come Home Broke)

women taking selfie in Rome
Pam McLean—Getty Images

No one wants to leave their phone at home when they take an international trip—but no one wants to get stuck with a giant bill, either. Here's how to have it both ways.

The best strategy depends on the type of trip you’re taking.

If you’re going on vacation

Turn off data roaming by switching to airplane mode so you don’t connect accidentally. “That’s the biggest way people get hit with charges,” says Logan Abbott of cell plan comparison site Wirefly.com. When possible, stick to free, secure Wi-Fi connections for all your Internet needs. For super-cheap calls, use a free app like Skype or MagicApp. Know you’ll need to talk, text, or surf on the go? Buy a short-term international package from your carrier, says CNET writer Maggie Reardon. These bundles are pricey—AT&T, for example, charges $30 for 120MB of data in more than 150 countries—but carrier packages do beat the sky-high rates of a domestic plan.

If you’re traveling for an extended period of time

Spending a while in one area? You may be able to use a prepaid international SIM card, which will effectively transform your device into a local phone. Say you’re traveling in India. Put a $39 Airtel SIM card in your phone and data rates drop to $1.80 for 300MB. To use a SIM card, you’ll need a compatible phone that’s been “unlocked,” meaning it can be used on a variety of networks. Check with your carrier to see whether your device qualifies, and if necessary, ask it to unlock the phone for you. One note: Switching cards will change your number, requiring folks at home to make an international call to reach you. For frequent trips, Abbott recommends T-Mobile’s Simple Choice plans, which start at $50 a month and include free international data in more than 120 countries.

Looking for a cell plan to use here at home? Check out our Best Cellphone Plans of 2014.

MONEY Kids and Money

How to Keep Your Kids From Racking Up Big In-App Charges

Kids have run up big bills on their parents' tablets. Paul Bradbury—Getty Images

The FTC says Amazon let children run up hundreds of dollars in unauthorized charges for in-app purchases. Here’s how to make sure your kid’s screen time doesn’t cost you a small fortune.

If you’ve been using your Kindle Fire as an electronic babysitter, beware that it might cost you more than a real babysitter. In a new lawsuit, the Federal Trade Commission says that Amazon has wrongfully billed some parents for unauthorized app purchases made by children.

How? Many free apps marketed towards kids let users make additional “in-app” purchases as they play the games. For example, download the free app “Tap Zoo,” and your kid can fill a virtual zoo with imaginary animals and habitats. Sometimes those items cost imaginary money – but other times, they cost real money, the FTC says.

The federal agency cites one customer hit with $358 on game bills (it doesn’t say which game.)

We’ve heard this story before: In January, Apple agreed to settle charges that it too had billed parents for unauthorized charges on kids’ games. But Amazon has pledged to fight the FTC’s lawsuit, arguing that the company has responded promptly to customer complaints, refunded purchases by kids and improved parental controls since launch.

As technology evolves to make it easier and easier to spend money, kids’ apps will likely remain a battleground. But in the meantime, here’s how to keep your kid’s virtual zoo running under budget.

The simplest solution: Turn off in-app purchases entirely.

On Kindle Fire, go to settings for the Amazon Appstore and turn off “in-app purchasing.” Apple products will let you disable the ability to install apps, delete apps or make in-app purchases. Just go to settings and tap “enable restrictions.”

At the very least, set up a password for in-app purchases.

Require that all users type a password before making any purchases – and make sure it’s a different password than the one you use to unlock your device. On Apple products, go to settings and tap “enable restrictions.” On Kindle Fire, go to settings and adjust “Parental Controls.” But here’s the problem: On Kindle Fires, each time you enter your password to buy something—say your kid badgers you into letting him buy that one new animal—the FTC says there’s a window of time when (15 minutes to an hour) when anyone using the device can continue making in-app purchases.

The FTC also argues that the password prompt is vague and doesn’t explain how much you’ll be billed. So enter that password with caution.

Do a little research before you let your kid buy an app.

Maintain a healthy suspicion of “free” apps. Oftentimes, free apps make money by collecting data about users, showing users advertising, or encouraging in-app purchases. But it’s not always easy to tell which apps will let your kid run up a huge bill. As of 2012, about 84% of the apps that let kids make in-app purchases were advertised as “free,” according to an FTC survey. Before you buy an app, read the full description to see if it allows in-app purchases. Also read reviews for the app, and try it out yourself before you let your kid play with it.

Switch to airplane mode or turn off Wi-Fi.

“Airplane mode” is a setting that turns off Wi-Fi – making it impossible to buy or download apps, or do anything else online. Quickly turn it on before handing over your device, and your kid should be able to play without making any new purchases. On Apple products, you can turn on airplane mode or turn off Wi-Fi under settings, or by swiping from the bottom of the screen and tapping the airplane icon. On Kindle Fire, you can turn on airplane mode by going to “Quick Settings” and then “Wireless & Networks.”

Did your kid run up a huge bill on a mobile device? How did they do it? Did you get a refund? Do you have any advice for other parents?

MONEY wants to hear your story. Fill out the confidential form below. We won’t use your information unless we speak with you first.

MONEY Kids and Money

What It Costs to Raise a Wimbledon Champion

Does your kid hope to be the next Roger Federer? Start saving money now. Steve Bardens—Getty Images

Want your kid to win Wimbledon? Start shelling out $30,000 a year.

On July 1, two-time Wimbledon champ Rafael Nadal, age 28, was bested by 19-year-old Australian player Nick Kyrgios—the youngest man in the draw, and the first teen in nearly a decade to knock off a No. 1-ranked player at a Grand Slam tournament.

If that youthful feat fuels your kid’s dream of tennis stardom, then get ready to open your wallet. In the United States, families of elite tennis players easily spend $30,000 a year so their kids can compete on the national level, says Tim Donovan, founder of Donovan Tennis Strategies, a college recruiting consulting group. That can start as early as age 11 or 12. At the high end, Donovan says, some parents spend $100,000 a year.

On what, you might ask. Here’s the breakdown:

  • Court time. Practice makes perfect, but practice can be expensive, especially if you need to practice indoors in the winter. In Boston, where Donovan is based, court time costs about $45 an hour. In New York City, court time can run over $100 an hour.
  • Training. Figure $4,500 to $5,000 a year for private lessons, plus $7,000 to $8,000 for group lessons—in addition to the aforementioned court fees to practice on your own.
  • Tournaments. National tournament entrance fees run about $150. Plus, you have to travel to get there. Serious players will go to 20 tournaments a year. Donovan estimates that two-thirds of the tournaments might be a few hours away, but elite athletes will need to fly to national events six or seven times a year. Want to bring your coach with you? Add another $300 a day, plus expenses.
  • School. You’ve already racked up $30,000 in bills. But if your kid is really serious, you might also spring for a special tennis academy. Full-time boarding school tuition at Florida’s IMG Academy costs $71,400 a year.

So what’s the return on investment? While most parents don’t expect to see their kids at Wimbledon, many still hope that tennis will open doors when it comes time to apply to college. But the reality is that athletic scholarships are few and far between. In 2011-2012, only 0.8% of undergrads won any kind of athletic scholarship, says Mark Kantrowitz, publisher of Edvisors.com.

Opportunities are particularly limited for boys. Donovan notes that because of Title IX—which requires that schools provide an equal number of scholarships for men and women—a Division I college with a football program might offer eight full tennis scholarships for women, but only half as many for men, because male scholarships need to go to the football players.

Bottom line: If you spend $30,000 a year hoping your tennis star will go to college for free, you’ll probably be disappointed with your ROI.

“Recipients of athletic scholarships graduate with somewhat less debt than other students but not significantly so,” says Kantrowitz. “The main benefit of athletic scholarships is providing access to higher-cost colleges without increasing costs, moreso than reducing the cost of a college education.”

That’s where Donovan comes in: For $3,500 to $10,000, Donovan Tennis Strategies provides different levels of assistance with the college application process. Oftentimes, Donovan’s clients are able to pay full tuition but want additional help leveraging tennis to get their kids into better (and more expensive) schools.

The strategy can pay off. According to Donovan, recruited athletes have a 48% higher chance of admission, sometimes even with SAT scores that are more than 300 points lower than those of non-athletes. “The coach can go in and significantly advocate for somebody and change the outcome,” he says.

So if you’re a parent to a budding tennis star, can you foster his or her talent for less? The IMG Academy does offer scholarships to promising young athletes whose parents can’t pay full freight, and the United States Tennis Association offers some grants and funding. But ultimately, players need to log hours on the court to get good, and that costs money.

“The more you’re playing, the better you’re going to be,” Donovan says. “That’s pretty well documented … and that adds up over time.”

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