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Setting Up Their Xbox Live Account
This is the main place to start when you want to keep your kids safe online. Have your kids sit down with you when you are creating their account so they can set up some of their own preferences. Overall, you will be in control of their membership level as well as the overall safety settings.
When you create their account, you want to make sure that both of you have a special, and different, name to login under called a Windows Live ID. These are all linked to an email address and this ID is used to help you manage your, and your child's account. Those that have a free email address through Hotmail or MSN already have a Windows Live ID and those that have an Xbox.com account do as well.
Follow the steps on the screen to set up your child's Xbox Live account. There is a setting for Privacy and Friends where you can choose the friends that your child approves as well as choose the level of information that others see when your child is online. This is one of the main steps to keeping your child safe online when you are setting up their account.
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Basic Online Safety Tips
According to your child's age, there are different precautions that you should take. For younger kids under the age of 10, you want to make sure that you sit with them when they are playing online and set clear rules for them to follow. Remind them constantly that they do not need to give out any personal information while they are online to anyone. For older children, these rules don't change much but you can allow them a little more freedom when it comes to sitting with them to play.
Microsoft and the American Academy of Pediatricians (AAP) have developed a wonderful age-based set of online safety tips for children of all ages, which you should read over before you allow your children to go online in any Xbox Live game.
You also want to make sure that your child has the right family settings on your Xbox 360 before they start playing. If you aren't sure how to turn on the family settings and choose the right ones, check out our article here on the Console channel. There are also several different ESRB ratings that you need to be aware of when choosing video games for your children to play on the Xbox 360. The ratings can also help you keep your children safe as it won't put them in a situation with older gamers if they are too young to be there.