According to the American Academy of Child and Adolescent Psychiatry, today’s children spend much of their spare time playing video games on a variety of gaming platforms or gadgets. Youngsters between the ages of 8 and 12 spend four to six hours per day watching or using screens, while teenagers spend up to nine hours a day on social media.
Meanwhile, according to one report, about half of all internet users between the ages of 14 and 41 spend a lot of money on video games and other related things. Also, the younger part of the group is more likely to give up money on video games and apps more easily than the older group.
There was a study by Newzoo on exactly this topic, which surveyed people of very different age groups from 10 to 65. The survey topic was ‘How many online users are most likely to spend money on video games,’ sorted by age. Respondents to the survey were divided into 5 age groups, sorted from youngest to oldest. First up were 10- to 12-year-olds, who most often spent a lot of money on video games at 52%. Next in line were 13- to 27-year-olds, who are 51% more likely to spend heavily on video games and related in-app purchase spending.
Then came the 28- to 41-year-olds, who surprisingly had a 48% chance of spending money on video games. The study slid down among people aged between 42 and 53, who had only a 31% chance of spending money on things like video games. Last but not least, the 54-65 age group, also known as the baby boomers, only had a 13% chance of spending money on video games.
The highest percentage was seen in the age group of 10-12 years, who barely know money management. Many video games are not educational, but there are still ways for kids to learn about money. In this article, International Finance has come up with some strategies for educating kids about managing money with video gaming.
Starting with gaming systems
Gaming equipment is pricey. Even the most basic gaming consoles and peripherals, such as a game controller and a single game, can cost hundreds of dollars. Add additional controllers, gaming headsets, and other accessories, and you can easily spend more than four figures. Next, you have to pay for new games, which can range from $5 to $70 or more per game. All of this adds up to a massive chunk of change just for playing a game.
A good way to teach your child how to manage money is to start by listing the prices for each component of their gaming system. Show them how much it costs to buy these products, and then explain how much work you have to do to pay for these items. It might be equivalent to two weeks’ salary or equates to 75 hours of work. This helps them understand that there is a limit to making and spending money and that there is no endless stream of money to buy what we want.
Teaching old gaming elements
Back when Monopoly and Life was still a staple of children’s entertainment, it was easy to teach children how to play with money when they were playing. After all, the game required you to have a certain amount of money to buy things and pay the rent, and along the way, you earned a certain salary. While there are video game versions of these board games, they may not be quite as appealing to children as Mario, Fortnite, and Madden.
However, children can still learn about money from today’s popular video games. Even in games like the Mario series, players collect coins, which serve as currency to unlock new karts, wheels, and gliders, buy extra lives, and buy power-up tools. While playing, kids know that if they collect enough coins, they can get this extra item. Use this as an opportunity to talk to them about setting savings goals to get what they want. Also, talk to them about how to prioritise their savings goals. Maybe they want an extra power-up and the upgraded kart. How many coins do they need? How will they get these coins? What happens if they spend those coins on a flashy piece of armour instead of saving it? How much will that delay your goal of getting the upgraded kart? Encourage them to think through their savings and spending goals.
Telling about in-game purchases
The free edition of a game frequently offers fewer features and tools, all of which may be purchased while playing the game. It can cost $1.99 for three additional power-ups or $5.99 for an hour of limitless lives. Whatever you buy, it probably seems insignificant to a child. Well, those in-game purchases can mount up rapidly, and before you know it, you can owe $20, $50, or even more.
It is crucial to discuss your restrictions on in-game purchases with your children before starting a new game. You can disable in-app or in-game purchases through the device’s settings or the network account settings if you don’t want them to make any in-game purchases. If you let your kids buy things in games, you should set a limit on those purchases and hold them responsible for it. In this way, they learn how to prioritise purchases and value saving when they have a spending cap that compels them to think about what they want to buy with that money.
Set budget
Speaking of limits, you should make a gaming budget for your children. This extends to the purchase of new games, peripherals, and even gaming systems in addition to in-game purchases. Discuss the items your child wants to buy and the associated costs when you sit down together. Then, talk about how they might make money to help with that expense. Together, you can create a video game budget that will teach your kids about finances and give them a sense of ownership over the decision-making process. They will be able to see how much money they require each month, how much of their allowance or other funds they need for that budget, and what will happen if they don’t follow the budget (for instance, they won’t get a new game that month).
Talk about budget
It should not just be one discourse about teaching children about money through video games. Asking your children questions about their spending on games, whether and how their savings objectives have changed, and how they intend to continue earning money for their budget will help you keep the dialogue going. Schedule a time for this conversation each month. Putting it on a calendar can help to ensure that you do not forget.
Despite the impression that children do not pick up many life skills from playing video games, there is a lot that they may learn about money. To bring those lessons to the fore, parents must discuss with their children the financial implications of playing video games. Young individuals can gain knowledge about building healthy spending habits, saving objectives, and budgeting by doing this. In the long term, after the video game has been replaced by something else, children can still apply these principles.