Learning about finance even if it concerns the individual themselves is perhaps the most boring thing but at the same time it is most important. “If an individual is financially literate then they are more aware of the financial opportunities that comes there way,” says Kalpesh Ashar, a SEBI registered investment advisor, Founder of Full Circle Financial Planning.
Ashar explains, “Like everything financial services has also evolved with time. The notion of savings and investments has changed from our forefather’s time to what we witness today. That has achieved a crucial prominence in today’s time. Be it any profession, financial knowledge also helps define the quality of life that we will lead.” In today’s time financial knowledge and financial literacy are a must.
“Understanding personal finance is very minimalistic in India. Our research showed that most people are not even aware of the difference between investment and savings,” says Juzer Tambawalla, VP & Head Marketing Communication, Franklin Templeton AMC. India is a cricket loving nation, therefore Franklin Templeton Mutual Fund took an initiative to bring the language of investing to the masses through its game called ‘FundtasticCup’. A virtual game where the terminologies of cricket has been used to create a quiz format game with a focus on helping the participants learn about the investment.
The trend world over is not very different. Jason Alderman, Vice President of global financial literacy at Visa Inc. says, “Visa understands that teaching consumers about money through ‘edutainment’ or ‘gamification’ is an effective means of demystifying a complicated subject by using the compelling and familiar medium of video games to learn while having fun.” Explaining further, he says, as part of Practical Money Skills for Life, Visa created a suite of educational games – just one component of the resources Visa offers to help teach people all ages about personal finance management. In addition to the many other popular games, Visa leveraged its partnership with the United States’ most popular sport, and created the NFL themed Financial Football. We also partnered with the world’s most popular sport and created a financial literacy game with FIFA, Financial Soccer.
Another game from the financial domain on the website Zapak.com is called ‘game for a money’. It’s a game where you get virtual cash which you can allocate across financial products and investment like mutual funds, insurance, house, stocks etc. then the player will roll the dice and the character will walk that many squares on the board. The place where the player stops will describe a situation like the stock market has fallen or gained hence the portfolio shows that much of gain. Or you have to repair the house and accordingly your money will be spent or your portfolio will move. The game has some inherent flaw. While asset price is random that one gets to see but our choice of expenditure is always that of an individual, which the game doesn’t allow. So just because the board says you have spent on luxury, the account shows a deduction.
Financial literacy is high in US but at the same time one should notice the effort put into it. For example, Visa partners with leading consumer advocates, government officials, educators, and financial institutions, to make a successful education campaign. “We have currently partnered with banks for hundreds of cobranded websites, with Federal Reserve Bank of Chicago for the annual Financial Literacy Summit which is in its 9th year, and with more than 45 state governments for game launches, and internationally with other non-profits for co-branded websites and games,” says Alderman of Visa.
Learning finance by doing it is perhaps the best way to pick it up. This emphasis can be seen in the games supported by financial institutions in US. They are highly interactive and diverse. While some follow a narrative approach wherein as the game progresses so does the story; meanwhile others look at creative ways to engage be it through computer or mobile (see The List). Though the two games focused on Indian population is a good starting point, but exponential development in future awaits.
ELEMENTS
Example games –
This game is also available on mobiles. Here the aim of the game is to help the participants learn about the importance of financial planning. The free online mini game was developed by T. Rowe Price in collaboration with Walt Disney Imagineering.
According to T. Rowe Price the game will impart important financial tips and tools, as well as definitions of basic key financial concepts, such as: setting goals; saving and spending wisely; inflation; asset allocation and diversification. While playing the game, players will have to make tough choices that will affect their financial plans, meanwhile they will choose and accomplish their own personal dream goals.
This game is mix of story, game along with learning. The game has been developed by North American Securities Administrators Association. The aim of the program is to aid students learn how to fight fraud.
Therefore, the game shows how a school going child goes around meeting and taking help of different people to uncover a million dollar fraud. It also teaches students on how to delve into newspaper stock tables, researching companies through online news, and deciphering the truth of an investment from fraudulent sales pitches.
A game developed by Franklin Templeton Academy, a part of Franklin Templeton Mutual Fund. The game is a quiz. While the person playing is answering questions, each question is considered a ball. And an over is made up of 10 balls, hence an individual will have to answer 10 questions and then proceed to the next round. Progressive rounds will increase the difficulty level.
List of Other Games
- Practical Money Skills. A website Here there are many games that focus on children to teach them about money.
- Mind blown life: A social mobile game that develops money management skills.
- Financial Entertainment: A website dedicated to many games -- online and mobile – with focus on different facets of financial management for individuals.
P.S. This is the submission draft. The actual story had appeared in December issue of Money Today. You can read the final version. Click here or copy paste the given below link -http://businesstoday.intoday.in/story/investor-education-games-improve-financial-knowledge-quotient/1/212681.html
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