Video games provide a fun escape from reality. But did you know that it can also serve as a financial education tool?
This may be as simple as teaching your children about budgeting, but it can also impact your career in the financial industry.
We'll take a look at how some existing games simulate real-world economic scenarios, and the potential for future games to easily solve your toughest financial questions.
Popular games to teach kids about money
Many mainstream video games include the concept of money management. Since there is an in-game currency, players must find ways to earn more money and use it wisely to level up. Players can also use that money to purchase items and upgrades via the in-game marketplace. This is a fun way to teach kids how to save and budget.
Other games introduce kids and adults alike to the world of startup business. For example, Stardew Valley allows users to start a farm and grow whatever they want to make the most profit every year. The more activities users do during each virtual day, the more money they earn. Therefore, we also learn about positive work ethics.
In certain games, investments play a role by encouraging players to buy items at a lower price and sell them at a higher price in the future. This concept is especially prevalent in sports games that simulate real-life transfer markets. The hugely popular Animal Crossing series also has a stock market.
10 games to help improve your financial literacy
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animal crossing
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stardew valley
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EA Sports FC (FIFA)
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roblox
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sims
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Tropico
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no man's sky
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star craft
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slime launcher
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NBA 2K
Case Study: Animal Crossing and Financial Education
Animal Crossing: New Horizons is one of the best examples of video games that teach kids about money. This makes money-earning tasks fun and allows players to repeat these tasks over and over again.
Animal Crossing helps improve financial literacy in four key ways.
1. Avoid debt
Tom Nook is an important character in the Animal Crossing world and runs a very important village store. Players purchase items from the store to expand their home and obtain what they need to perform tasks to progress through the game. However, these upgrades come at a cost.
If the player does not have money to buy new items, they can purchase them with credits and pay them back to Tom Nook. They can accumulate large amounts of debt and create a whole new set of obstacles. Players learn to live within their means so as not to hinder their growth. They learn to buy new items when they earn enough money.
2. Savings and loan repayments
When the debt increases, the player is forced to pay back the loan, so he has to save money to pay off the debt. This teaches young players to set money aside instead of spending it all at once, and develops the habit of saving money.
3. Interest
Loans in Animal Crossing accrue interest. It's better to pay it off as soon as possible. This is definitely a realistic concept that can teach children the pros and cons of taking out a loan.
4. Trade/Business
The stock market built into Animal Crossing: New Horizons is called Stalk Market. Players must make wise virtual investments to earn more money. This system introduces goods to players, and some resources are more valuable than others. Think of it as an early jump into a market that is inevitable as an adult. An overview of the basics of options trading, stock investing, and managing securities as a whole.
Online marketplaces also allow players to choose sales strategies that maximize profits. For example, Animal Crossing has certain fish and vegetables that have a high value. It may be to their benefit to focus on these products over lower value products. However, you may choose to focus on accumulating large amounts of low-value products that can be collected more easily and quickly. it's their choice.
Video games and the future of financial education
There is a growing market for online games aimed at teaching financial concepts to people of all ages. It may be a simple budgeting strategy, or it may be a more advanced concept such as investing.
One example is the free-to-play, award-winning business simulation game Venture Valley. It was developed by Singleton Foundation, Discovery Education, and Dubit. The game was aimed at students and “significantly enhanced students' education in business and entrepreneurship,” according to a recent study.
Gamification and financial literacy: what’s next?
The future of financial education is exciting, especially when that offering includes games. However, there are still some tweaks left.
Scott Chow, educator and founder of The Blog Starter, said the concept of gamification in financial education is “something that has been tried and tested by students.”
“A boring 2,000 word blog post can be turned into two concise 500 word lessons and quizzes with visualizations. It’s all about thinking outside the box and understanding finance as a subject. It’s about not being limited by severity,” he said.
Virtual reality is also becoming part of the conversation. It is becoming more sophisticated and widely available.
VR can simulate real-world scenarios and give students challenges to overcome. AI will also be able to create personalized learning programs for users.
Video game-based financial learning challenges
Games can improve the delivery of financial education, but one challenge is designing games that fully engage users. Finance-based games are often considered too complex or too simple. This means developers need to strike a balance to appeal to a wider audience.
Accessibility is also an important factor, as gaming consoles and high-end computers are expensive. Games need to work on a wide range of platforms, from smartphones to modern consoles. This can increase the cost and duration of game-based financial education projects.
Improve money management with games
Games are becoming an increasingly popular method of financial education, especially among young people. Whether it's finance-based games or mainstream games sprinkled with financial concepts, kids are benefiting from alternative options.
Although this landscape faces hurdles in terms of accessibility and ease of use, it is an exciting market that can play an important role in developing future entrepreneurs and business leaders.
New York contributor Kiara Taylor specializes in financial literacy and financial technology. She is a corporate financial analyst.
This originally appeared on The Penny Hoarder, which helps millions of readers around the world make and save money by sharing unique job opportunities, personal stories, giveaways, and more. Helpful. The Inc. 5000 ranked Penny Hoarder as the fastest growing private media company in the United States in 2017.
