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.

New Year Resolutions & Bright Futures

Studies have shown that financial health is strongly connected to physical and mental wellness. There’s no better time than now to start routines that set your kids up for financially-healthy and happy futures. Let Greenlight help you set new year resolutions that you’ll actually keep to jumpstart your progress.

Resolution #1: We all need a bit of balance (tracking)

Our goal at Greenlight is to make sure all kids are empowered to make financially-smart decisions. We think empowerment starts with knowledge — working with kids to make sure they understand how much they earn, how much they spend and how they should save. 

Tip #1 is all about making sure kids take the time regularly (dare we say it, daily?!) to track their spend history and account balances. This new year resolution will naturally spark conversations around trade-off decisions, teaching your kids responsibility in budget management.

Within the Greenlight app, kids are able to monitor their spending, earning, saving, and giving history. This allows kids (and parents!) to track:

  • How much to expect in allowance
  • How much is available to spend
  • Progress toward their saving goals

“I have two teens (13 & 14). Being able to see their spending and balances digitally via the app has made them much more mindful of how and when they choose to spend their money.”

Antoinette K, Greenlight mom

Resolution #2: Save! Save! Save!

We know it’s hard for kids (especially the young ones!) to understand the difference between wants and needs. Starting kids out with a savings account early can teach them to save for what they want and be prepared to cover what they need because unexpected things happen. 

Consider mapping out a monthly plan with your kids to help them articulate, save for and reach their goals. 

The most popular saving goal for Greenlight kids in 2019 was a car!

If your kids earn an allowance based on grades or chore completion, write out how much each grade or task is worth. That will help them calculate what they need to do to accomplish their goals.

Parents are also able to help their kids reach their goals by setting aside a portion of allowances into their child’s Greenlight save account, helping reinforce wise saving habits.

Setting up saving goals within the Greenlight app helps kids visualize what they’re saving for and regularly track their progress.

Greenlight kids who create saving goals save 29% more than kids who don’t.

Once a week, consider having a family meeting to talk about how close your kids are to reaching their goal. Reviewing their spend history can help kids rethink a plan for the next week on how to spend less and save more. This regular routine can turn into a long-term habit that magically reduces the number of times you get asked for money.

Resolution #3: Watch savings grow with Parent-Paid Interest

After you get your family into the habit of saving, it’s time to learn about how to make your savings grow. Greenlight helps teach the power of compound interest by offering parents the ability to pay a parent-paid interest rate on top of their child’s savings.

On average, Greenlight families set a parent-paid interest rate of 18%. 

Once your kids understand the concept of compound interest, you can set your parent-paid interest rate to a more realistic one and have conversations around what grownup savings accounts typically earn.

Resolution #4: Have you done your chores?

Chore routines can be a great way to show your kids that money has to be earned. A recent poll of Greenlight parents showed that 73% give allowance, and 47% say their kids have to earn it. 

Use the beginning of the year to reassess your family’s chore routine. With age may come new responsibilities, changing the chores typically assigned to your kids.

However, if ever, you choose to reward your kids for chores, Greenlight can help with task management. With the Greenlight app, you can set one-time or weekly chores based on the routines you set for your family. 

In 2019, Greenlight helped kids finish 1.8 million chores!

Parent reviews all chores in one view within the Greenlight app.

If your child does dishes weekly, Greenlight allows parents to assign tasks and regular deadlines. If your child contributes to other household responsibilities by cleaning the gutters once a month, one-time chores may be assigned with an optional monetary reward upon completion.

Whatever your goals, Greenlight is here for you.

Greenlight is here to help your family feel empowered to talk about money and form smart habits with all the tools to raise financially-smart kids. Not a Greenlight member? Sign up today!

Greenlight’s 2019 Year in Review

You did it. You celebrated the birthdays, packed lunches for soccer tournaments and survived the endless conversation about Minecraft. Congratulations, Moms and Dads — you’ve made it through 2019. 

As we look toward 2020, allow us to celebrate the unsung heroes of financial literacy – YOU! The hundreds of thousands of Greenlight parents teaching their kids the value of a dollar and the art of making smart trade-off decisions.

In 2019, Greenlight kids did 1.8 million chores and collectively managed more than $150 million. But that’s not all.

Greenlight's 2019 Year in Review infographic. 
Kids managed $150+ million in 2019.
They set aside $2.6 million to give and did 1.8 million chores.
On average, they spend $91 per month, and 30% of what they spent went toward food and grocery.

Looking toward 2020

In 2020, we’ve got big plans to improve the Greenlight app and add more features for your kids to learn the full-spectrum of money management.

We’ll be weaving more educational layers into the Greenlight app, making it fun (and painless!) for kids to build smart earning, spending, saving and giving habits.

Our team is also building tools for kids to learn all about the world of investing, with a new suite of features that allow kids to invest in multiple funds and even buy fractional shares from their favorite companies.

Our single most important job is to support you – the parents doing the hard work. Together, let’s make 2020 the Year of Financial Literacy.

*Data captured from Greenlight families based on activity from Dec 2018 to Nov 2019. Average monthly spend calculated only for kids who spent.