How Gaming Can Help Kids Learn Money Management Skills

As a parent, I was surprised when my 8-year-old son asked for Robux, a virtual currency used in online games, for his birthday. At first, I wondered if he should aspire for something more than video game currency, but my wife offered a different perspective. She found it remarkable that he was saving up for something.

As a professor of information technology, I’ve long recognized the value of video games. For example, gaming motivated my kids to learn to read. So it shouldn’t have been a surprise that gaming could help them learn financial literacy as well.

With a little guidance and some room to make mistakes, our kids are now learning how to earn, save, and budget money using their favorite games. Here are four ways my wife and I use gaming to teach our kids financial literacy.

What is Financial Literacy for Kids?

For my family, financial literacy for kids means helping them grasp the essential skills involved in saving and budgeting money. Once kids start comprehending basic concepts in math, usually by the second or third grade, they can start learning about financial literacy. My wife and I focus on the following with our kids:

• Learning how to spend within a budget
• Earning in-game money by doing chores at home
• Talking about strategies for saving and investing

4 Ways to Use Gaming to Teach Financial Literacy

1. Create a System for Earning the Game’s Currency by Doing Chores

My wife and I have created chore star charts. The chores are simpler for our youngest — things like cleaning his room and brushing his teeth — but involve more responsibility and effort — like mowing the lawn — for our oldest. They can earn $5 per week if they stay on task. And they can choose to use that money for Robux.

2. Set Up a Gaming Budget

Given the limited number of occasions that our kids get Robux gift cards — like holidays and birthdays — my wife and I created a budget for their in-game purchases. Our kids can only spend in the games what they earn from their allowance. If there’s an outstanding achievement, like a remarkable report card, we might offer extra funds for their Robux budget, but they understand that simply asking for more won’t lead to a positive response.

3. Let Them Make Mistakes

Sometimes financial literacy for kids means making mistakes, too. Initially, my kids made poor choices with their in-game money, and I allowed it. When they realized they spent all their money on something they didn’t actually want, they cried out for more, which served as a valuable lesson. They needed to learn to consider what they really wanted and avoid overspending on unnecessary things.

4. Talk About the Wins

Financial literacy for kids is also about the wins. My oldest son started making money in the game by selling items. I was pretty happy about this as it was teaching him how to start a business, as well as how to code. These are skills I highly value. He and his brothers were also learning about digital currency.

Kids learning financial literacy through gaming

All of these are great lessons, but buying virtual currency has some watch-outs that can be part of learning financial literacy for kids, too. First, these are all virtual, so if the game disappears or you stop playing, any purchases or currency are lost. It may also be worth emphasizing how virtual products differ from tangible, real-world purchases in how often you can use and keep such things.

Additionally, numerous fraudulent websites sell fake gift cards, so it’s advisable to purchase them directly from the game’s official website or reputable in-person or online retailers.

I believe these games have a wide range of uses, including financial literacy for kids. With some guidance, a plan, a budget, and permission to make mistakes, games can make learning to save and budget much more enjoyable.

Kids learning to save and budget through gaming