FYI

Financial Lessons From Monopoly

It’s all fun and games unless you are learning something at the same time.  That’s what we discovered about the classic board game Monopoly.  As it turns out, Monopoly can teach you lifelong financial lessons.

For example, everyone gets the same amount of money to start, $1,500, so why do some go bankrupt while others make it rich?

“It all goes back to the decisions they make throughout the game and throughout their life.  Do they buy their first house or rent their first house?  Do they splurge on things before they have the money, or do they save up and pay with cash?” said Derrick Kinney with Derrick Kinney & Associates.

Monopoly 1
Kinney says in Monopoly, put your financial eggs in many different baskets like railroads, utilities and properties.  In real life, do the same.

“Think about things like real estate, stocks, bonds, all different types of investments, because as the market changes, you want to make sure that not all of your money goes down at the same time or up at the same time.  You want to be diversified,” he said.

You are probably saying Monopoly is about the roll of the dice and a lot of luck, but Kinney says we roll the dice every day in real life with unexpected changes happening at any moment.

“Whether you are driving to work or at the office with your kids, chance occurs all the time.  Often times how people are prepared to handle chance opportunities dictates a lot of their success,” he said.

Finally, Kinney says the learning from Monopoly isn’t just for adults, it’s for children too, like his 11-year-old daughter Hannah.

“It teaches them that not all properties, just because they are available, are the best ones to buy. There’s better properties that may produce more income than others, but also lets them learn how to manage money and get along with other people,” he said.

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