Video games can teach children how to save and budget
Do video games level up kids' money skills and teach them personal finance lessons? Yes, but it largely depends on how parents talk with them about their online experience. Here are three conversations to have:
How to save
Mark Mazzu, a former banker and i stockbroker, uses popular video game Minecraft to teach children how to save In the game, players use chests to keep valuable items safe much like a bank account. Using this example, Mazzu asks his students. If you get 64 pieces of coal or cobblestone and you don't want to use all of the stuff you find, why don't you put 10 per cent away in a chest?"
How to allocate funds
Theme Park Tycoon, a game where players build and run an amusement park, can also teach money lessons. "There are a lot of actual business allocation decisions that are not the sort of thing kids would get the chance to do in real life, unless they're running a serious lemonade stand," says Laura Vanderkam, author of Off The Clock.
How to budget
The money lessons can start even before the game is played. Kids have to consider how much games cost, says Jeff Haynes, senior editor of web and video games at Common Sense Media. "Whether you're asking for it for a present or saving up for a title you want, there is an allocation of funds and negotiation with your parents," he says.
Susan Beacham, founder of financial education company Money Savvy Generation, suggests having kids earn money or use their allowance to buy virtual currency for game-playing. Follow up afterward and ask if they think the cost was worth the benefit.
Credit : Hindustan Times
Picture Credit : Google