The ramifications of this are that if you log in and download an app for another user, and then hand them the device, they can begin downloading more apps or in-app content. This is not to say that they would have malicious intentions, they may simply be young and not understand the impact.
Make certain that sufficient time has passed before you leave an iDevice unsupervised if the password is active, or simply sign out of the App store upon downloading the content.
Happy Parenting!
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