I loved playing board games as a child, and I still do. Once our boy is a little older, I’m looking forward to introducing a family game night. Not only is this a great way to spend time as a family, but our son can learn some important aspects of personal finance.
The first game that comes to mind, obviously, is Monopoly. While the portfolio allocation may be too heavy on real estate and low in utilities, there is a lot that this game covers. For one, luck may play a part in our life but by keeping enough in savings, we’ll be prepared for the good and the bad, whether it’s a great investment opportunity or a major expense from the community chest. Another thing you learn quickly is how to negotiate with other players. Everything is negotiable in Monopoly, and by doing so you might get a good deal from someone else that needs to sell. Plus, once you have some real estate and other investments, you can sit back and let all that passive income roll in!
Another game I enjoyed as a kid was Pay Day. What better way to learn how to budget and manage your money than with a game board that replicates a calendar? This isn’t much different than how I budget now. I use Excel to keep track of what expenses are coming up and when I get paid. You can take out loans in this game, and what better way to learn how they can set you back while those who saved in advance for upcoming expenses pull ahead of you.
The Game Of Life runs you through major financial decisions. You have to first decide what type of education you want to pursue. Then comes a career, spouse and kids, and purchasing cars and homes. You’re also best to stay out of debt, but good debt for education or a home will likely pay off, though not always.
So when family game night comes around, we’ll be having a good time as well as teaching our son some important finance skills!
Tom Drake is the owner and head writer behind Canadian Finance Blog and also works as a financial analyst for a major retailer. Tom and his wife Amanda welcomed their beautiful baby boy Christian in October of 2009. To read more of Tom’s posts, subscribe to Canadian Finance Blog’s RSS feed and follow @CanadianFinance on Twitter.
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