Video games offer a chance to unwind and have fun. But did you realize they can also serve as instruments for teaching financial concepts?
This might be as straightforward as introducing children to budgeting, or it could spark an interest in a career in finance.
We’ll examine how several existing titles mimic real-world economic situations and explore future game ideas that can turn perplexing money matters into simple decisions.
Popular Games that Teach Kids About Money
Many mainstream video games incorporate money-management mechanics. They include in-game currencies, so players must find ways to earn more funds and spend them wisely to progress. Gamers can also use currency to buy items and upgrades in virtual marketplaces. This can show children the basics of saving and budgeting in an engaging format.
Other titles introduce players—both young and old—to entrepreneurship. For instance, Stardew Valley lets players build a farm and choose crops or products that generate the most income each season. The more tasks the player completes during each in-game day, the more revenue they accumulate. So, it’s also a lesson in sustained effort and work ethic.
Investing also appears in certain games by encouraging players to buy low and sell high later. This idea is common in sports titles that emulate real-world transfer markets. The extremely popular Animal Crossing series even includes a form of stock market.
10 Games that Help Improve Financial Literacy
- Animal Crossing
- Stardew Valley
- EA Sports FC (FIFA)
- Roblox
- The Sims
- Tropico
- No Man’s Sky
- StarCraft
- Slime Rancher
- NBA 2K
Case Study: Animal Crossing and Financial Education
Animal Crossing: New Horizons stands out as a top example of a game that teaches money management. It makes earning currency enjoyable and motivates players to repeat money-making activities.
Animal Crossing can enhance financial understanding in four primary ways.
1. Avoiding Debt
Tom Nook is a central figure in the Animal Crossing universe, running the essential village shop. Players buy items from the shop to expand their home and obtain materials needed to progress. However, those upgrades come with a price.
If players lack the funds for a purchase, they can buy on credit and repay Tom Nook later. They might accumulate significant debt and create a new set of challenges. To avoid slowing their advancement, players learn to live within their means and only buy upgrades when they’ve earned enough.
2. Savings and Loan Repayments
If they take on debt, players must make loan repayments, which forces them to save money to clear what they owe. This teaches younger players to set money aside rather than spending everything immediately, helping them form saving habits.
3. Interest
Loans in Animal Crossing accrue interest. It often makes sense to pay them back quickly. This reflects a real-world idea that can teach kids the advantages and drawbacks of borrowing.
4. Trading/ Business
Animal Crossing’s internal market—the Stalk Market—requires players to make considered virtual investments to grow their funds. This system introduces commodities, where some goods command higher prices than others. Think of it as an early primer on the markets adults encounter. It demonstrates the fundamentals of trading options, investing in equities and managing securities overall.
The online exchange also lets players adopt selling tactics that boost profit. For instance, certain fish and crops in Animal Crossing carry high values. Players might focus on those items instead of lower-value goods. Alternatively, they could opt to gather many small-value items that are quicker and easier to collect. The choice is theirs.
The Future of Video Games and Financial Education
There’s a growing sector of online games specifically crafted to teach financial ideas to all ages. These can range from basic budgeting techniques to complex investing strategies.
An example is the free-to-play, award-winning business simulation Venture Valley. Created by the Singleton Foundation, Discovery Education and Dubit, this title—aimed at students—has “greatly enhanced students’ education about business and entrepreneurship” according to a recent survey.
Gamification and Financial Literacy: What’s Next?
The horizon for financial education is promising, particularly when games are used as the delivery method. Still, there’s room for refinement.
Scott Chow, educator and founder of The Blog Starter, noted that gamification in money education is “something students have tried and tested.”
“A dull 2,000-word article can be converted into two succinct 500-word lessons with visuals and a quiz. It’s about creative thinking and not letting the seriousness of finance constrain you,” he said.
Virtual reality is also becoming part of the discussion. VR tech is advancing and becoming more accessible.
VR can recreate real-life situations and challenge learners with scenarios to solve. AI will also enable tailored learning paths customized to each user.
Challenges for Video Game-Based Financial Learning
Games can enhance the way financial education is delivered, but a key hurdle is building titles that truly engage players. Finance-focused games are sometimes seen as overly complex or overly simplistic. Developers must find the right balance to reach a broader audience.
Accessibility is another issue because of the expense of consoles and high-spec PCs. Games should function across many platforms, from phones to the newest consoles. This requirement can increase costs and extend development time for game-based finance education projects.
Gaming Your Way to Better Money Management
Games are becoming an increasingly popular channel for financial education, especially among younger generations. Whether a title is explicitly about finance or a mainstream game that includes monetary elements, children gain from this alternative learning route.
Even though the field faces obstacles related to access and design, it’s an exciting area that could help cultivate future entrepreneurs and business leaders.
Los Angeles contributor Maya Rivera writes about financial literacy and fintech topics. She works as a corporate financial analyst.
