Kids spend much of their free time playing video games on gaming systems or devices. In 2023, according to the American Academy of Pediatrics, over 90% of children aged 2 and older played video games, and 75% of American households owned a game console. Although many video games are not aimed to be educational, some offer opportunities for kids to learn about money while playing for fun. 

The Cost of Games

Families can spend hundreds of dollars just for basic gaming consoles and accessories. The cost of additional controllers, gaming headsets, and other accessories can easily surpass four figures. In 2023, each gaming consumer in the United States spent an average of $19.56 monthly on video games.Parents and guardians can help teach kids about money using gaming costs.

• List the cost for each component of the gaming systems.
• Detail how much it costs to buy these products, explain the value in terms of working hours or income.
• Illustrate the dollar limit allowed monthly or yearly, and enable children and teens to make smart purchasing choices.
  

Using Game Elements 

When Monopoly and Life were a routine part of entertainment for kids, it was easy to teach kids how to use money while playing a game. Although there are video game versions of these board games, they may not be as appealing to kids as Mario, Just Dance, and Minecraft.

Even so, kids can still learn about money from today’s popular video games. For a more direct learning experience, Animal Crossing: New Horizons features lessons on economics and finance as players pay their mortgages and make investments. Still, even games such as those in the Mario franchise have players collecting coins that serve as currency to unlock new karts, wheels, and gliders, buy extra lives, and purchase power-up tools. 

Kids understand the value of collecting coins and items to get an additional clue or reward. Use this to talk with them about setting savings goals to get something they want and how to prioritize their savings and spending goals. Maybe they want an extra power-up and that upgraded kart. How many coins do they need? How will they get those coins?

Know How In-Game Purchases Work 

Game developers often release a free version of a game with limited capabilities and tools, all of which can be purchased while playing the game. Maybe it’s $1.99 for three extra power-ups or $5.99 for unlimited lives for one hour. In-game purchases can add up quickly and present a learning opportunity for children.

Kids should understand the limitations on in-game purchases and the possibility of their financial contribution, such as with an allowance. Parents and guardians can turn off in-app or in-game purchases through the device’s or network account settings. A spending limit forces kids to consider what they want to spend that money on and prioritize purchases.

Set a Gaming Budget 

Create a gaming budget for your kids. This includes in-game purchases, new games, accessories, and new gaming systems. Discuss what they want to buy and how much that would cost. Then discuss ways for them to earn money toward that expense. 

Setting a video game budget with your children teaches them about money and makes them feel invested. They will see how much money they need each month, and how much of their allowance or other funds they need for that budget.

The Bottom Line

Though it may seem like kids don’t learn many life lessons while playing video games, there’s a lot they could learn about money. Video games and the accompanying purchases allow parents or guardians to detail the financial aspects with their kids to bring those lessons to the forefront. Young people can learn about setting savings goals, developing good spending habits, and planning and following a budget.