Can Video Games Teach Smart Money Skills?

XBOX, PlayStation, Nintendo, Steam. If you’re a parent, you’ve probably heard your kids talking about these video game consoles and platforms along with their favorite games like Madden, Fortnite, Mario Kart and Minecraft. With 75% of American households having at least one gamer in the house, we’re not surprised by the wave of Greenlight families sharing their gaming experiences with us. 

Whether your kids prefer mobile gaming or they kick it old school with Nintendo, video games can quickly become a favorite pastime and a recurring cost. Americans spent $43 billion on video games in 2018 and the numbers keep growing, which is why we think video games can be leveraged as an excellent tool for parents to motivate their kids to make smart money decisions. 

Knowledge is power 

With so many different consoles and video game franchises on the market, teaching young gamers to do their research develops smart habits that can apply to future large purchases. Important questions to consider include: 

  • How much does each gaming console and individual game cost?
  • What are the differences between each video game platform and what makes them special? 
  • Which games interest them the most? Which platform is the right fit? 

In Greenlight mom Natalie Jensen Young’s house, her three kids (ages 14, 16, 18) make the best decisions for their individual gaming interests.

“My kids each have different gaming preferences. One loves his Switch and the Xbox. One loves his PS4 and Xbox. One loves her Wii U. They all love the 3DS. They have all saved up for these machines, doing their research, and finding out which games are on which platforms. They get a set amount of money each week for jobs completed around the house — they save up for the games they want.” 

It’s never too early to study the fine print 

Since video games often feature in-game purchases for accessories or level boosts, it’s critical to teach kids vigilance when it comes to downloading games with monthly fees. By linking a Greenlight card to these in-game add-ons, kids gain visibility into miscellaneous charges that are often associated with mobile purchasing while parents protect their own credit cards from these charges. 

“My kids have the cards attached to their XBOX, PC and phone accounts. It’s so much better than having my card attached and them accidentally buying stuff. Plus, it taught them to be careful of things like recurring charges or hidden fees. They are much more careful of what and how they buy now,” shared Greenlight mom Alysson Browning. 

Screenshot of child's Greenlight balances, including an Online Gaming greenlight.

Level up with a video games budget

Due to the fast pace of the gaming industry, new trends can keep prices steep. Use these updates as an opportunity to talk about a magical thing called budgeting. Discuss how your child can’t get the latest game in their favorite franchise without the proper savings or budget.

With Greenlight, parents have the ability to limit how much kids spend on games, which helps eager gamers from going overboard.

Ohio mom Heather Renee Gilbert shared the secret to her game-loving son’s success.

“My son uses his Greenlight card for Xbox games. I created an Online Gaming greenlight for him where I put money specifically for that purpose into it. He earns that money with grades at school and his behavior. Having the greenlight specific for gaming is amazing because if I didn’t set a limit on what he spent on games, he would blow through all the money I gave him on just that. Now he knows exactly what he can spend on his games. No game money in the greenlight means he can’t spend more than what he has.”

Screenshot of Greenlight's spend controls, where parent can manage how much children can spend in certain categories.

Talk that gaming and finance talk with your kids

Raising financially-smart kids sometimes means getting crafty with teaching opportunities. The more relevant the topic, the more engaging the conversation can be. If your kids are into video games, why not start money talks around one of their favorite things?

Greenlight can help

Sign up your family for Greenlight today to explore your own lessons in earning, spending, saving and giving.

Using your kids’ debit cards to talk about money this summer

The money talk — not as scary as the birds and bees, but still a big deal.  In fact, 49% of parents say they’re not sure how to explain money to their kids [1]. Enter: Summer Break. More time at home means more time to talk about money management. Follow along for some conversation starters and tips on how to have the money talk.

EXPLAIN WHY BUDGETING IS IMPORTANT

79% of Americans keep a budget [2], which is great. Budgets may be a bit more involved for grownups, but that doesn’t mean your kids can’t start learning the basics. How? Start off by explaining why budgeting matters. There’s a good chance they’re already wondering that.

Conversation Starter: “What’s something you really want but you haven’t had the money to buy?” Maybe it’s something you can’t fit into your parent budget, or maybe it’s something you think they should buy on their own. During the summer, there are lots of opportunities for your kids to make money — help them figure out how to manage their earnings.

BREAK DOWN COMMON BUDGETING TERMS

Fixed expenses and variable expenses — ring a bell? Maybe, maybe not. Either way, these are important words to teach your kids about budgeting. Break it down into Summer Break terms and they’ll get it.

Conversation Starter: “A fixed expense is one that doesn’t change. Like, our Netflix subscription. It’s the same price every month. A variable expense is one that does change. Like, a meal at a restaurant. It can go up or down, depending on where we eat.”

TALK ABOUT SAVING MONEY

Budgeting for Summer Break is one thing — saving for it is another. Instead of handing over a wad of cash and hoping they stash it away, make it a hands-on experience with a bit of fun along the way.

Conversation Starter: “Saving money lets you buy things that you might not have enough money for right now. When you add a little bit of money to your savings over time, it adds up so you can buy those things one day.” Tip: Help your kids make a savings goal (or better, lots of goals). Then, work together to plan out how they’ll reach that goal.

GIVE KIDS THEIR OWN DEBIT CARD

The fun part about the money talk is giving your kids their own debit card. Unlike a credit card, they can only spend what’s on it. The best part? They won’t realize that they’re learning valuable lessons every time they use their card — but trust us, they are.

With the Greenlight debit card and app, your kids can:

  • Set savings goals.
  • Learn to make trade-off decisions. Keychain or shark-tooth necklace? It’s their call.
  • Earn allowance through chores. Cool fact: Greenlight kids who earn allowance save 26% more. Woohoo!

A few other things you can do in your app:

  • Manage access to ATMs. Are they withdrawing a bit too much? Set limits.
  • Choose stores. You decide where they can and can’t spend. Gas only? Just at restaurants? Adjust the settings in your app.
  • Get real-time notifications and monitor their spend levels.

GET SET FOR SUMMER

Join Greenlight today and help your kids get a head start on budgeting for their Summer Break — and for life! Sign up now

[1] Investopedia.com [2] Debt.com

Everything you need to know about National Decision Day

For many high school seniors, May 1st is an important day: National Decision Day. It’s the day they decide what comes after high school — the first of many big decisions they’ll make for themselves. This year, it also marks a day in which their decisions are heavily impacted by the world around us. 

They did the work, took the tests, made it through the teenage years and now have their sights set on graduating high school. While you and your family explore different ways to commemorate this milestone (perhaps with video calls and virtual graduation parties?), we hope you can still find time to talk about the next chapter of your child’s life.

The new-age debate

Our Gen Zs live in a world of entrepreneurs and self-starters. They’re seeing success as seven-year-old YouTube influencers make millions and 16-year-olds start their own companies.

So it makes sense why your kids will have different thoughts and considerations surrounding the college talk. That’s not to say that they don’t want to go to college — they just may not see it as the only option. As parents, we need to listen to that so we can guide them toward a decision that we all feel good about.

To sign or not to sign? What to consider

The college talk isn’t just on National Decision Day — it’s year-round. It’s a good idea to stay in the loop with the merging views on the subject. When you delve into the college talk, you may come across split views on a few things: 

Student loans: 

Because every financial situation is different, student loans are a hot button for many parents. If you and your kids are thinking about student loans, take time to explore every avenue and talk about how it will impact them throughout and after college. 

In 2018, the average individual student loan amount was $29,200. Loans may or may not be an option for your family. Either way, National Decision Day is a great opportunity to talk through the numbers with your soon-to-be grad. 

Public vs. private vs. community:

The good news is we’ve got lots of options. The not-so-good news? Well, it’s hard to decide! It’s no secret that most private schools come with a heavy cost and community schools are typically the most affordable. Public schools tend to sit somewhere in the middle of the two. 

Talk to your kids about finances — how they’ll be managing their money throughout college, pros and cons of an expensive school and what matters most to them. Your conversation could bring you to a cost-benefit analysis (bonus!) or it could spark up a new outlook on the entire decision-making process. 

Career analysis: 

Anyone else feel like their kids are too young to decide on a career path? In many ways, they are. That being said, they may have a different perspective. 91% of high schoolers believe they know their dream job, according to a survey done by EY and Junior Achievement. 

To them, a career is fun, exciting and adulty (their word, not ours). You know better than them that careers are not just about fun — they’re about financial security and stability. 

The transition out of high school is a prime time to have an open, honest conversation with your kids about this. You have the best insight into your kids’ strengths and interests, and you can use this knowledge to help them choose a path that will give them the biggest return on investment. (Props to you if you can make ROI sound fun!) 

Looking for a way to start the conversation? Try these: 

“Are we there yet?”

You’ve got a lot to think about, but no need to stress about it. National Decision Day is an exciting time for you and your kids. No matter what path they choose, the most important thing is that they have you. 

And… they have Greenlight! They may be growing up, but that doesn’t mean it’s time to stop helping them make wise money decisions. If you haven’t already, join Greenlight to keep your kids financially-healthy and happy throughout this next chapter of their lives.