Remember the day Monopoly taught you the importance of investing your money correctly or how The Game of Life taught you the importance of buying Insurance?
These games have given us life lessons to swear by. This weekend relive those childhood memories by teaching your kids these great games:
This game has been around for 100 years now and is available in many versions across the world. It gives you the experience of being a real estate trader for a day. As you move across the board you can buy property, collect rent on it, negotiate deals on it with other players and even mortgage it when you run out of money.
Financial Lessons To Learn From Monopoly:
- Investing wisely: Many players lose at Monopoly by owning the most expensive pieces because they don’t pay attention to cost, only cash flow. Focusing on the cash flow without taking into account the cost paid to attain those cash flows is a big mistake not only in the game but also while making real-life financial decisions.
- Diversifying your investments: To earn money in this game you must first buy properties, then when other players land on your properties you can collect rent from them. If you build houses or hotels on those properties you get higher rent. The important part here is to decide if you want several properties or just a few with high rent. Strategists advise buying the railroads and skipping the utilities! You can apply this strategy to your personal finances too by diversifying your money among different investment avenues.
Watch out for Monopoly’s Electronic Banking version! This one comes with a credit card machine and credit card instead of paper money. In this version, players have to swipe their cards instead of using paper money while buying property. This version teaches us how cautious we need to be while using plastic money like credit cards because we don’t have a physical track of how much money we have left.
- The Game Of Life:
This game is more than 150 years has been revised several times. As the name suggests, it is a game played across the entire course of life, from education to retirement. You win this game by accumulating the largest net worth while choosing paths that simulate real-life choices like family and career options with lots of twist and turns. They also have an electronic version just like Monopoly.
Financial Lessons To Learn From Life:
- The Importance of Insurance: During this game, you need to make a decision for buying various kinds of insurance like auto, fire and life insurance. If you decide to buy these insurances then you won’t have to pay the cost for landing on a space where a disaster occurs. But if you don’t buy them then you might have to pay a lot when you land on a space where a disaster occurs.
Sometimes throughout the game, you might not land on a space that has been struck with disasters, similarly in real life your insurance is just like a protection for disasters that may or may not occur.
Apart from that the game also teaches you:
- How education and career choices impact your income
- The impact of taxes, debt, and overspending on your money
- The importance of early investing
- Stock Exchange:
The name of the game suggests what it is all about. Though this game is slightly complex it teaches students how the stock market works exactly.
This one gives children a brief idea about how stock markets work, the reason why stock prices go up or come down, how interest works, what exactly is a dividend and how wealth is created.
Nowadays there are many online versions of this game. But according to me learning about the stock exchange through a board game is much better.
In Payday, player take turns moving around a 31-day calendar board and dealing with loan payments, bills, unexpected expenses, cash windfalls and other financial circumstances until they get their paychecks on the last day of the month.
Financial Lessons To Learn From Payday:
- Importance of saving: In this game every player gets $325 as a monthly salary with which you have to manage your monthly expenses. The best strategy for winning Pay Day is also a simple financial lesson: Plan ahead.
Since all players get the same fixed salary, the size of your emergency fund decides your position in the game. If you land on a space that costs you a lot of money, you want to have enough to cover costs or else your account will go into the negative.
Remember each round, “pay yourself first” by setting a specific amount of money in your emergency fund. This is a lesson to learn in life also, the minute you get your salary Pay yourself first.
If you know any more games that taught you about money, comment and let us know!