Financial literacy is not taught effectively in the public schools, writes multimillionaire and best-selling financial author Rob Kiyosaki. Although Kiyosaki and others work to improve the quality of public financial education, as of yet the best teachers of financial literacy are a child's parents. Like with other subjects, games can teach children while they enjoy the play and competition.
Monopoly
Monopoly teaches basic budgeting, money handling and the concept of building income streams, says elementary school teacher Beverlee Brick. The basic structure of getting paid for passing "Go" motivates players to find other income from properties, railroads and utilities. In his book "Rich Dad, Poor Dad", Kiyosaki describes his own financial start from the same basic situation: not wanting to wait until payday to get paid. Many other games, such as Payday and Life, use similar mechanics that can teach children the same lesson.
Lemonade Stand
Lemonade Stand was first released in the 1980s. In this game, the player handles a supply and advertising budget, then sets prices. The goal is to make a profit by selling at a price that brings in customers and predicting how many supplies to buy. It's a basic introduction to budgeting and small business concepts. Kids can play the Flash game online, or buy commercial upgrades such as "Lemonade Tycoon." Variants of the concept are common, allowing children to run businesses ranging from auto lots to amusement parks.
CashFlow
CashFlow is a financial board game invented and distributed by Rob Kiyosaki. Following a mechanic similar to Life or Monopoly, it focuses on building a stream of income rather than on acquiring property. The basic idea is to teach in concrete terms the value of investing over frivolous spending. Though aimed primarily at adults, Brick reports luck with elementary-age children. Pre-teens and older children should have no trouble understanding and playing the game.
Mock Planning
In a chapter on schooling during travel, lifestyle writer Tim Ferriss recommends planning and budgeting as an education tool. Using a simplified menu list, a small child can budget a grocery shopping trip. Older children can handle monthly budgets, entertainment budgets or even plan out a vacation. When considering this approach, Brick recommends modeling first. Provide an example, real or mock, then walk your child through a second example.
References
- "Rich Dad/Poor Dad"; Rob Kiyosaki; 1999
- Beverlee Brick; Elementary School Teacher; Hillsboro, OR
- "The Four Hour Work Week"; Tim Ferriss; 2008
