w, we’re big proponents of kids engaging in the act of play. But might play—or, more specifically, gaming—contribute to another form of enrichment for our youth: the development of financial literacy?
Multiple studies have established financial literacy as one of the most highly correlated predictors of success in adults. Why, then, do schools and parents so rarely teach this skill to children and young adults? One explanation might be the prevailing belief that children are too young to absorb topics of a financial nature. However, nothing could be further from the truth. According to a 2015 study by the Financial Industry Regulatory Authority (FINRA), it is crucial to teach financial skills to kids before they enter college. The Consumer Financial Protection Bureau (CFPB) takes it a step further, arguing that financial literacy should be taught starting in kindergarten.
Why is it so important for people to learn financial concepts early? Simply put, the subject creates a bridge between the math kids learn in school and how it applies in the real world. Experts recommend two ways to ensure those lessons stick: by encouraging kids to think creatively about finances, and by keeping things small, tangible, and goal-oriented. And what better way to synthesize both approaches than through the gamification model?
The benefits of gamification as an educational tool are ample. Among other perks, gamification allows people of all ages to see real-world applications of otherwise abstract concepts, enhances the educational experience, and creates a healthy addiction to the learning process.
Multiple organizations are building on the gamification framework to bring financial literacy to children and their families. One such example, Kidcoin, utilizes a blockchain-based family finance model. Through their gamified platform, users learn how to manage money while earning micro-rewards for their contributions, achievements, and good deeds.
At Basement Sports, we can only hope this is the beginning of a much broader trend, allowing children and young adults to learn a crucial skill, at a crucial juncture in their lives, and to have fun in the process. It’s a win all around!