YSK: Why and How to Add a Passkey to Your Xbox One

You should know according to the Xbox Live Terms of Use, also known as the TSU or TOS, which you agreed to if you're using Live states in the following snippets:

1.1. What services are covered by this Agreement? This Agreement applies to Xbox games, content, applications and services, including Xbox Live, SmartGlass, Games for Windows-Live, Xbox Video, Xbox Music, and Windows Phone Store/Marketplace...

6.1. Charges. If there is a charge associated with a portion of the Services, you agree to pay that charge. 

6.6. Cooling off period. When you request a Service from us, you agree that we may begin to provide the Services immediately. You won't be entitled to a cancellation or "cooling off" period, except if the law requires a cooling off period. (Most if not all Places in the US don't have a cooling off period)

6.9. Refund policies. Unless otherwise provided by law or by a particular Service offer, all purchases are final and non-refundable. (again most places in the US don't have laws requiring refunds)

In plain english, that states that you are responsible for your account, if you accidentally leave it logged in and a child, younger sibling, freind or anyone else purchases content you will be stuck footing the bill.

Here is Why and how to add a passkey to your Xbox One:

• A passkey protects against a child signing in as the parent and overriding parental controls. This setting prevents a child from simply clicking on the parent’s picture, signing in as the parent, and changing the child’s otherwise parentally controlled settings. 
• A passkey helps to prevent unauthorized charges. You can choose to require a passkey as part of any purchase on Xbox Live. Setting a passkey helps prevent children from making unapproved purchases. 
• A passkey allows the parent to grant content exceptions. The only way for a parent to override a content limitation is by entering his or her personal passkey, so it’s easier to manage what content your children use on your Xbox One console. 
• Your passkey roams with you. The passkey that you set on your profile follows you to any Xbox One console you use. As long as you sign out when you leave, you can feel secure knowing your account is safely saved to your friend’s Xbox One console and ready for you the next time you come over to play. 
• A forgotten passkey defaults to your Microsoft account password. If you forget your passkey, the console will default to your Microsoft account password as a fail-safe.

1. Scroll left on the Home screen to open the guide. 
2. Select Settings. 
3. Select All Settings. 
4. Under Account, select Sign-in, security & passkey.   
5. Select Create my passkey. 
6. Enter a six-digit passkey, and then re-enter the passkey to confirm. 

Your passkey has now been set. If you ever forget your passkey, you can reset it.

If you've forgotten the passkey that you use to sign in to your Xbox One console or that you have set for purchases or managing child accounts, you can resolve this issue using your Microsoft account password.

If you've forgotten your Microsoft password, you can reset your Microsoft account password. 

To use your Microsoft account password to reset your passkey, follow these steps:

1. When you are prompted to enter your passkey on the console, enter any six-digit combination three times.  
2. After you enter a passkey three times, Xbox One will prompt you to enter your Microsoft account password. Type your password. 
3. Select Make a new passkey. 
4. Enter a new passkey, and then enter it again to confirm.

To delete a passkey

1. Scroll left on the Home screen to open the guide. 
2. Select Settings. 
3. Select All Settings. 
4. Under Account, select Sign-in, security & passkey. 
5. Select Delete my passkey.