Tweens Learn Finance and Have Fun? Absolutely, Says Science!
Financial education is a must
Remember yourself young? No credit history, no plastic cards, no online banking. Today's financial landscape has become a great deal more, and increasingly complex.
We must prepare our kids to face it and have a secure, better still, prosperous future. We need to teach them - kids do not evolve into responsible people themselves. And the cost of financial ignorance is too high.
“In 2022, the average cost estimated per person [in the US – A.K.] due to financial illiteracy was $1,819. – this is the highest average since the first annual survey took place 6 years ago”. [ The Cost of Financial Illiteracy, Linda Lach, Darlene Nzorubara]
“Financial illiteracy is an epidemic in the U.S., and it's coming at a time when the economic climate is changing rapidly,” says Vince Shorb, CEO of the NFEC. “That means financial education has never been more important than it is today.” [‘Financial illiteracy is an epidemic’: Americans lost an average of over $1,800 to financial errors in 2022 — 3 big money mistakes you could be making right now] [highlighted by myself – A.K.]
You have to start early
If you think your kids are too little to learn finance, think again. Initiating early financial education is vital, a concept referred to as emergent literacy.
Strong evidence [ The Effectiveness of Youth Financial Education: A Review of the Literature Martha Henn McCormick] suggests that children exposed to education early on retain useful habits in adulthood. Not only do they grow into responsible adults. Remarkably, even their romantic lives benefit as a result!
How to teach?
You’ve guessed it right: traditional classroom methods are the least efficient.
“Low financial literacy scores among young adults, even after they have taken a course in personal finance, is related to lack of motivation to learn or retain these skills” [Motivation and financial literacy Mandell, Lewis; Klein, Linda Schmid]
The good news is, there is an efficient and highly engaging way of teaching kids: games. Yes, ol’ good games. It has now acquired a scientific name: Game-Based Learning.
A huge advantage of games is that they are risk-free. Kids can apply most practical concepts they have just learned without running into disaster.
Talking of engagement and motivation. Many kilos ago, your humble servant was in a two 12-hour-long days of training. Among many other things, we played a business game. We were developing retail business by investing in sales and promotion, personnel, hardware, and M&A in a competitive environment.
In the evenings, instead of meditating over a glass of well-deserved beer in the evenings, we, no-nonsense executives, could not stop talking about the game!
Why Games Work
Games aren’t just fun. By engaging in hands-on activities and real-world scenarios, kids can discover and explore financial concepts [The design of online experiential financial literacy games Shonn Cheng ]. They are educational tools that can shape behavior and influence future decisions.
This leads to long-lasting behavioral changes [Financial Literacy: It's all fun and games by iGrad Author] as they reflect on and discuss their experiences.
Eventually, one cannot say better than [Using video games to foster financial literacy Alyssa Froehling]
“If you want the best results, educational games designed intentionally to teach about financial literacy are your best bet.”
But do they actually work?
It does look like they do.
“…they [kids – A.K.] also talk about how dumb it is to rack up debt and how you should plan for big expenses. These comments are coming from 13-year-olds!” — H. Walters
This is a testimonial from an interested person who observed how the method works.
Read another one.
“They [kids – A.K.] each opened a bank account, and now they understand how interest works. It’s such a relief to know my children will be well-prepared for managing their money when they embark on their own lives as adults.” — T. Bazell
How does it work?
Children immerse themselves in interactive games designed to weave essential financial lessons into fun, hands-on activities. Each game is crafted to capture their attention and sustain their focus, with the added incentive of rewards. For instance, kids can earn points for completing tasks, which boosts their motivation and keeps them engaged.
One of the earliest and most enduring games is Monopoly.
Through these playful experiences, kids master crucial financial concepts, including:
- Understanding the basics of money
- The art of spending wisely
- Earning and budgeting
- The importance of saving
- The role of banking
- Borrowing responsibly
- Giving and philanthropy
While many games provide learning opportunities, not all of them are made equal. The competitive landscape is not too busy. Several companies offer kids various educational games varying in engagement intensity. Parental guidance is essential in all of them.
One option is different though.
Meet Budget Brainiacs—a super cool, web-based program designed for families with kids aged 10 and up. Their mission is to be the site your kids want to visit. There, they not only learn critical financial skills but also earn awesome rewards.
Another unique feature of the program is it’s a club. Children play here. Parents discuss various issues with their peers and share their experiences. Community, in a word.
Here’s how it works: You help your kids log into their game page. From there, they dive into a world of interactive games and tasks that make learning about money a blast.
We’ve got videos, games, classes, and quizzes—all designed to teach money management in a way that keeps kids engaged and excited. They’ll earn points every time they master a new money concept.
The program is designed to last till kids reach their middle teens. From there they are expected to be picked up by their school or/and more advanced program.
Curious? Join the club today, or explore their site, www.budgetbrainiacs.com.
Teaching children finance early is no longer optional -
it’s essential. Budget Brainiacs offers an innovative, engaging, and fun way for kids to master these skills, setting them up for a lifetime of financial success. Start your child’s financial education journey today by joining the club!