Parents News Forum
How video games teach finance skills to kids
Quote from Fergus McCarthy on November 9, 2024, 1:16 pmDigital playgrounds: finance skills to kids
With 90% of UK children gaming, parents are increasingly seeing video games as a way to introduce essential finance skills. Recent research by Lowell reveals that 81% of parents believe games like Animal Crossing and The Sims are helping their children build positive money habits. From saving and budgeting to understanding home ownership, these games are teaching kids lessons about real-life finances.Top money skills children are learning through gaming
Games with in-game economies and virtual currencies can introduce young players to financial concepts that translate into real life. Here are the top financial habits children learn from gaming:
- Saving habits: 50%
- Budgeting: 46%
- Responsibilities of home ownership: 27%
- Managing credit: 25%
- Taking out loans: 16%
Lowell and financial education charity MyBnk see this as an opportunity for parents to use gaming as a learning tool. Many parents notice their children asking questions about saving and budgeting after playing these life-simulation games. Could video games become a crucial element in financial education?
Tips for parents to foster positive financial habits with video games
According to MyBnk, starting financial education early builds lifelong habits. Here’s how parents can turn gaming into a financial learning experience for their children:
1. Encourage budgeting with pocket money
Help children manage gaming expenses by involving them in the family budget. Set aside a portion of their pocket money for in-game purchases and encourage mindful spending.
2. Choose games that encourage healthy habits
Games don’t need a financial focus to teach valuable habits. Animal Crossing and The Sims promote budgeting and delayed gratification. Children learn to save for items and manage expenses like taxes and bills.
3. Set spending limits
Introduce spending caps for in-game purchases. Encourage kids to plan for both virtual and real-life purchases by discussing costs and considering value before spending.
4. Teach goal setting
Guide children to save for specific goals, whether it’s a toy or an in-game upgrade. This teaches delayed gratification and highlights the benefits of planning.
5. Implement a 24-hour rule for purchases
Teach kids to wait 24 hours before making in-game purchases. This helps them reflect on whether they truly want or need an item, reducing impulse buys.
Supporting responsible gaming and financial habits
John Pears, CEO of Lowell, suggests parents normalise conversations about money and debt within the family. “Talking about finances removes stigma and encourages healthy money habits,” he says. “This partnership with MyBnk highlights how even gaming can offer valuable financial lessons.”
For more guidance on helping children develop positive financial habits, visit Lowell’s financial tips for children.
Digital playgrounds: finance skills to kids
With 90% of UK children gaming, parents are increasingly seeing video games as a way to introduce essential finance skills. Recent research by Lowell reveals that 81% of parents believe games like Animal Crossing and The Sims are helping their children build positive money habits. From saving and budgeting to understanding home ownership, these games are teaching kids lessons about real-life finances.Top money skills children are learning through gaming
Games with in-game economies and virtual currencies can introduce young players to financial concepts that translate into real life. Here are the top financial habits children learn from gaming:
- Saving habits: 50%
- Budgeting: 46%
- Responsibilities of home ownership: 27%
- Managing credit: 25%
- Taking out loans: 16%
Lowell and financial education charity MyBnk see this as an opportunity for parents to use gaming as a learning tool. Many parents notice their children asking questions about saving and budgeting after playing these life-simulation games. Could video games become a crucial element in financial education?
Tips for parents to foster positive financial habits with video games
According to MyBnk, starting financial education early builds lifelong habits. Here’s how parents can turn gaming into a financial learning experience for their children:
1. Encourage budgeting with pocket money
Help children manage gaming expenses by involving them in the family budget. Set aside a portion of their pocket money for in-game purchases and encourage mindful spending.
2. Choose games that encourage healthy habits
Games don’t need a financial focus to teach valuable habits. Animal Crossing and The Sims promote budgeting and delayed gratification. Children learn to save for items and manage expenses like taxes and bills.
3. Set spending limits
Introduce spending caps for in-game purchases. Encourage kids to plan for both virtual and real-life purchases by discussing costs and considering value before spending.
4. Teach goal setting
Guide children to save for specific goals, whether it’s a toy or an in-game upgrade. This teaches delayed gratification and highlights the benefits of planning.
5. Implement a 24-hour rule for purchases
Teach kids to wait 24 hours before making in-game purchases. This helps them reflect on whether they truly want or need an item, reducing impulse buys.
Supporting responsible gaming and financial habits
John Pears, CEO of Lowell, suggests parents normalise conversations about money and debt within the family. “Talking about finances removes stigma and encourages healthy money habits,” he says. “This partnership with MyBnk highlights how even gaming can offer valuable financial lessons.”
For more guidance on helping children develop positive financial habits, visit Lowell’s financial tips for children.