How To Use Video Games To Teach Kids About Money

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Today’s guest post is brought to you by Michael Dinich from Wealth of Geeks. Michael is a Financial Advisor and self-proclaimed pop culture geek. He offers financial advice, and I’ll just let the article speak for itself.

This post is inspired by a discussion I had with Melissa Blevins about the power of using analogies to teach kids about money through different financial lessons, including out-of-the-box methods. I appreciate her lending me her platform to help you use stories and metaphors to improve your financial and children’s lives.

Sometimes people in the personal finance space question my use of geek culture to teach financial lessons. When I have offered to do guest posts on other people’s blogs, tying back some financial topic to the latest movie, video game, or comic book, I often get some resistance. Allow me to explain why I use stories and analogies to teach lessons and why you should be doing the same as a parent.

When it comes to personal behavior, we are resistant to change, whether with finances, fitness, or productivity. Any improvement in behavior immediately presupposes the old behavior was “wrong,” and people (myself included) do not like to be “wrong.” The knee-jerk reaction to anyone suggesting we are wrong is to become defensive, maybe make excuses or justify the behavior. Some people go so far as to become depressed or desponded over a worsening behavior, creating a vicious self-fulling cycle.

Why Stories?

Through analogies, metaphors, or just a healthy geeky discussion, stories have a wonderful way of bypassing our defenses. It’s much easier to see some fictional character or situation’s faults than our own. However, we can see ourselves in these situations and learn from them neither less. Analogies are certainly not a new teaching aid; they have existed since Biblical times. Fables have been used for centuries to pass on knowledge; even today, stories and games are used to educate young children.

At one point, everyone collectively decides that money is such a serious topic that we can’t have a bit of fun with it. The masses are not in great financial shape, despite all the financial information available online or otherwise. So it’s clear we need to change how the information is presented and taught.

First Things First

You can’t teach what you can’t demonstrate, and as parents, if you do not have a healthy relationship with money, the best tools in the world will not out teach a bad example. Reading blogs like this is a great start, and Melissa has some great resources to help you improve your finances.

Related Articles on Family Finances:

• Debt Snowball vs. Debt Avalanche | Dave Ramsey vs. Suze Ormon
• 9 Reasons Why Your Teenager Desperately Needs a Job

As parents, I think there are two critical topics to teach kids about money.

1. The difference between a want and a need
2. It’s ok to want something as long as you’re willing to work to earn it.

Imagine if you were trying to teach a child about healthy eating. I see parents routinely teaching their children the difference between a need and a want. This is a significant financial lesson; however, it’s crucial not to rely on frugality and delayed satisfaction overly.

What approach do you think would develop the healthiest relationship with food? Would you solely focus on calorie restriction? Or would you choose to focus on a balanced diet coupled with activity and, yes, even occasional rewards, like the occasional cookie as a treat?

Hopefully, you choose the latter; as research suggests, diets based on increased activity and healthy balanced eating are more successful than dieting alone.

So, when trying to help our kids have a healthy relationship with money, we want to utilize a similar approach. The financial version of the exercise gives children the opportunity to earn something they want.

Tip: When taking your children shopping, don’t tell them you can’t afford something. You must come from abundance. Instead, point out that it’s not in the current budget, as you prioritize other things that are more excellent value to the family. Let your children know they can make money, save, and budget for these wants if they choose.

Using Video Games to Teach Kids About Money

If you grew up playing Atari and have not played video games since you had a regular Nintendo in grade school, you must be wondering what any of this has to do with finances.

Video games have evolved since the 8-bit era of jumping over pipes or rescuing Princess Peach. Today, games are massive, multi-faceted worlds that are a microcosm of modern society. Most even have in-game economies.

Many Modern games allow players to complete tasks, earn in-game currency, and purchase upgrades, enhancements, or skins. Some video games go so far as will enable you to set up markets, earn in-game loot, or even craft items to sell to in-game merchants.

Your child’s first business venture could be an in-game virtual one. Skyrim, for example, allows players to collect ore and gems and turn the raw materials into jewelry that can be sold to in-game merchants. Use this as a teaching moment, discuss with them that what they are doing when turning more into profit is “adding value,” and explain how that’s done in real life.

Caution: some games may be too mature for your child; you must understand what games your child can handle. Observe them playing the games, and if you see them engaging in any questionable behavior, be prepared to intervene. Remember that most modern games have a social element; your children may speak with people online.

A discussion about the best video games to teach kids about money is beyond the scope of this article. Although it would be fun to do, I couldn’t recommend a game because I do not know you or your family. A game that one family may find mild could offend another family.

Additionally, children mature at different paces. As an example, the youngest can handle some more advanced games because he grew up watching his big sister playing games, and she always is willing to lend a hand when he gets stuck.

You can even make money in GTA 5.

Then you can teach them how to do it themselves!

Tip:  If you’re looking for milder games or games for younger children, Nintendo tends to cater to the casual and family crowd. Nintendo prides itself on maintaining a safe and family-friendly standard. 

Caution: Some companies, such as EA, attempt to monetize games by selling randomized that are effectively barely legalized gambling.  

Even a relatively simple game like Candy Crush can be used to impart financial wisdom. Mobile freemium games usually sell extras to speed up playing the game. This is an excellent opportunity to teach your children about work and money.

If your children want to buy a five-dollar pack of “lives,” allow them to earn money, doing work that’s over and above any choirs that are expected of them. Set a timer and record how long it took them to “earn” the money and how long it took them to spend it.

Then sit down and discuss with them. Was the effort worth it? Would that have saved up and bought something real instead of the in-game currency? Did the work take more time than it takes for the lives to refresh in the game?

[click_to_tweet tweet= “Using Video Games to Teach Your Kids About Money: It is not really about the video game, it’s about communicating with your children and using something they are passionate about to connect with them.” quote= “It is not really about the video game, it’s about communicating with your children and using something they are passionate about to connect with them.”] It might be a bit cheeseball and geeky, but down the road, they will look back and remember when you used Fortnite to teach them about money.