HT3702 My daughter is downloading games and i am being charged and have been charged over $500 in the past 2 weeks

My daughter is downloading apps and games and isn't being prompted for a password.

If it's on the iPod Touch then depending upon what version of iOS that you have on it then you might have a Settings > General > Restrictions > Require Password option that can be set to 'Immediately' - the default is a 15 minute period during which it doesn't need re-entering. You should also be able to turn off in-app purchases via the Restrictions screen, and you can hide the App Store app ('Installing Apps' 'off').
For the charges that have already been made, you could try contacting iTunes Support and see if they will refund or credit you : http://www.apple.com/support/itunes/contact/ - click on Contact iTunes Store Support on the right-hand side of the page, then Purchases, Billing & Redemption

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