The most coveted last minute gifts this holiday season may not be something you can wrap or stuff into a stocking. In a recent study at Carnegie Mellon University, researchers talked to young people about their most prized possessions. Many said that virtual assets–music, photos, Facebook Credits, and items in online games–were more important to them than material possessions such as clothes.

To parents, the value of “stuff” made out of bits and bytes may seem dubious. Teens, however, treasure these virtual assets because they are portable, can be customized, and help strengthen social networks. According to the researchers, many young people prefer a digital photo that friends have tagged, linked, and annotated to a photo in an album or a frame. Young people also like the “placelessness” of virtual possessions, which are usually stored online so they are accessible anywhere. They appreciate the fact that virtual possessions are easily modified in response to new stages of development or everyday moods.

From a parent’s point of view, virtual possessions also have advantages. For one thing, they minimize clutter. A music collection that’s stored in a cloud takes up a lot less space than a CD collection—and it’s easier to organize. Even with younger children, some parents have found that kids get more satisfaction from purchasing an inexpensive add-on to a favorite game rather than a cheap plastic toy that is soon broken or forgotten. In some households, virtual assets have become the standard reward for chores completed or goals accomplished.

Virtual assets fall into two categories. The first mirrors goods that are available in the offline world, such as music, photographs, and books.  At this point, most parents are quite comfortable giving kids a phone with a built-in camera, an e-book reader, or a gift card for downloading music.  When you give one of these gifts, you also get the opportunity to talk about and, if necessary, oversee content so you can be sure it’s age appropriate and consistent with your family’s values.

A second kind of virtual asset is less familiar to many parents. This includes items that exist only in an online environment. Although virtual goods are very popular in Asia and have been enthusiastically embraced by hardcore gamers, they have only recently become mainstream in this country thanks to Facebook games such as Farmville, Cityville, and Sims Social. Many young people start playing these games for free and then want to accelerate their progress or enhance their status by purchasing items ranging from virtual weapons to playthings for virtual pets.

Virtual goods also include other apps that amuse, educate, inform, and educate. Although many of these tiny programs are free, it’s definitely worthwhile for parents to locate apps that connect with a child’s interests and then scrutinize them to be sure they are free of adware or malware. Here are tips that will help you give your child virtual assets that aren’t contaminated by real problems.

• Download games and apps only from trustworthy websites. Download.com, a site run by C-Net, does rigorous screening to be sure the programs it offers don’t introduce viruses into your system or surreptitiously collect information about what your child does online. NEVER download anything from a window that pops asking if you want software you didn’t request.
• Designate one credit card for all online transactions. Don’t use a debit card because it provides less protection if you have problems. Use the card only on sites that show a locked padlock on the status bar and, if you use PayPal or another online payment service, link your account to the card.  When the bill for the online credit card arrives, go over it item by item to be sure every charge is legitimate.
• Avoid downloads that insist you install something else before the program will run.  Most programs depend upon Java (made by Sun) and Flash (made by Adobe).  If you need to update either of these programs, do it directly from the websites of the parent company.
• Sign off on every download. Kids are impulsive. Some have run up big bills for parents by purchasing virtual products that cost real money. It may be inconvenient for a child to get your permission before downloading an app or a piece of music but that extra step gives you control over spending and content.
• If you think an older teen is ready for a little discretionary spending, consider Facebook Credits which allow your child to purchase gifts or game accessories. Visit facebook.com/credits

Think of digital goods as entertainment, as enjoyable and potentially ephemeral as the movie your kids saw last weekend. The ideal virtual gift will please your child, but it should also reinforce your ideas about healthy, wholesome development. Even though your kids may not always appreciate it, that kind of thoughtful, involved parenting is always the best gift a child can get.