XiaNaphryz
LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
I wanted to try this myself because I was fairly certain that as mentioned a few times, once you download a free app after entering your password, you do NOT need to enter again to download another free app, even a few minutes later. I just downloaded Mega Run for free without entering my password (becasue I downloaded another free game before that) and 30 seconds later tried an in app purchase. It prompted me for the password. So this guy definitely gave the kid the password to download the app and then again to confirm the purchases.
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But did you specifically set up your settings to prompt each time? I know I did for my iPad, and a couple people have mentioned it's not setup like that by default.