Can't buy games with account balance

Hi

Unfortunately to purchase Xbox 360 games on your Xbox one you need to have a payment option associated with your account and you should then hopefully be able to use your account credit.

Please see things to note from the link below

https://majornelson.com/blog/xbox-one-backward-compatibility/

• You have to have a valid payment option on file to purchase any title.
• If a game is free, you’re still required to “purchase” it – you just won’t be charged anything for it.
• The Xbox 360 Marketplace and the Xbox One Store websites use different architecture, so if you have credit but no payment option associated with your account, you won’t be able to use the credit to purchase Xbox 360 titles. You will have to add a payment
  option or purchase the title using an Xbox 360 console.
  

You can't buy a gift card with funds in your Microsoft account balance. That would be essentially buying a gift card with a gift card. You would need to buy a game or other content in the store and use your account balance as the payment method.

You can't buy a gift card with a Microsoft account balance.

unfortunately you can't use your microsoft account balance to buy live.

Really, Microsoft account balance method this is like a scam. You transfer money across from a parent account to allow a child account to "buy apps" responsibly - apps owned by Microsoft - and now the balance there is useless because, wait for it, you can't use it. Total waste of money! You can't even transfer the balance to another family account. Hopeless.