Looking for a Christmas gift? What "Monopoly" can teach...

December 11, 2011 18:12:00
Gordon Pape           
 
Here are some lessons learned by the game:

 • Sitting on cash does not win the game.

 • You need to take some risks to make big profits.

 • Risks need to be carefully thought out.

 • If you overextend yourself by taking on too much debt through mortgages or spending too much cash you will be vulnerable if you are suddenly faced with a big bill.

 • Trades need to benefit both sides or they are unlikely to be completed. There has to be a perceived win-win situation. But try to get a small edge and know what that is before you make a trade.

 • The game is a combination of skill and luck. You can play well and still lose because the dice don’t roll your way. Don’t be discouraged by that. Life isn’t always fair.

The other day I played a game of Monopoly with two of my grandchildren and their mom. But it wasn’t the old Monopoly that I remembered. This is a sleek new 21st century version where properties cost millions of dollars and you use a debit/credit card for transactions instead of paper money.

My nine-year-old grandson acted as banker, inserting our cards into an electronic banking unit to record purchases, rent payments, passing Go bonuses, tax payments, and the like. We moved our tokens (based on each of the six continents) around a board which featured world cities like Montreal and Taipei in place of Boardwalk and Baltic Ave. Instead of utilities like Electric Company and Water Works, we bought Solar Energy and Wind Energy. The railroads have become Space, Cruise, Rail, and Air transportation centres.

I’ve always enjoyed Monopoly but I have come to realize in recent years what a valuable tool it and similar games can be in helping teach kids the basics of finance and investing. Thanks in part to the work done by the federal government’s Task Force on Financial Literacy, we’re becoming increasingly sensitized to the fact that many Canadians don’t understand the most basic principles of money management.

However, I don’t recall anything in the Task Force’s report about using board games to introduce children to the concepts of finance. To me, that’s a great place to start.

But it has to be a board game, where you’re all sitting around a table together. Electronic games won’t work — the kids are isolated and there is no opportunity for parental interaction.

For example, in the middle of our Monopoly game my grandson became excited by the fact he had more cash in his account than any of the other players. We paused for a few minutes while his mother explained that was because he had not invested in any houses for his properties. She and I reinforced that lesson as the game progressed: You have to take some risks if you hope to succeed.

In the end, my six-year-old granddaughter, who was playing on the same team as her mom, emerged as the winner. Together, they had gained control of all the cheap properties on the strip between Go and Jail, carefully invested their money in houses and hotels, and then waited until we landed on them and were dinged with huge rents.

There are several money and life lessons that can be taught through Monopoly (although don’t turn every game into a series of lectures, the idea is to have fun).

Although Monopoly is the classic financial game, there are others that are worth considering. Here are some suggestions.

Stock Ticker. This one has been around for a long time — I played it back in the 1940s when I was young. It hasn’t been updated since, as far as I can tell, and there is nothing sexy about the board or the tokens. But it’s a good way to learn about how the stock market works and introduces such concepts as dividends, share splits, and valuations. The game is best suited to children over age nine.

Trump. This is The Donald’s answer to Monopoly. Here, the idea is to acquire various glamorous properties, such as a casino, sports complex, hotel, tropical island, airline, and convention centre. The players can wheel and deal for millions of dollars, auction properties, and force sales. The potential learning features are similar to those of Monopoly. The currency features the face of — who else? — Donald Trump. It’s a fast-paced game and my children always enjoyed it. It’s appropriate for kids 10 and up. There is also a newer Trump game called The Apprentice which teaches young people how to be successful project managers, but I haven’t tried it yet.

The Settlers of Catan. This is a terrific game! It doesn’t involve money per se but it teaches youngsters about the productive use of land and resources and how to use the wealth generated to build roads and communities. The game was created in 1995 and has won numerous awards since then, but many people are not familiar with it. Take my advice and try it — my grandchildren have all loved it. There’s a demo at the game’s official website, www.catan.com.

At the Gates of Loyang. I just bought this one as a Christmas gift so I haven’t tried it out yet. The game is based on the economics of China 2,000 years ago. It involves growing and selling produce, bartering, and moving along the Path of Prosperity. Each step along the path costs money, but money is also needed for investments such as new seed so there are important decisions to make. It looks promising. Recommended for children 10 and older.

If you’re looking for some last-minute gift ideas, check out these games. They’re a great way to introduce kids to the fundamentals of money and finance — and you’ll have fun, too.

Gordon Pape is the publisher of the Internet Wealth Builder newsletter. His website is www.BuildingWealth.ca