It’s funny to think how closely virtual economies in games resemble our own. Especially considering gaming is, for many, an escape from the hustle and grind of daily life.
But perhaps that’s not a bad thing. Becoming fiscally responsible is a hard-learned skill, developed over a lifetime. Wouldn’t it be great if video games could help?
Video game economies do, in fact, provide a foundation for understanding how money works in the real world. The flow of virtual currency within a game teaches players to make informed decisions about how to spend their resources for maximum success. It’s not crazy to say that financial management is a necessary skill for gamers. Online gambling is the most overt example of this crossover, where gameplay strategy and financial management are fundamentally entwined. Vlad Grindu of Techopedia explores the secrets of RTP and bonus features of popular slot games, including real money pokies, to explain the mechanical side of the games. Meanwhile, this article, and your gaming experience, will help you out with the budgeting side.
Resources & Budgeting
One of the most valuable skills honed through gaming is resource management. Consider the game “Stardew Valley,” where you manage a farm. You have limited energy each day, a set amount of money, and various tools and seeds. To succeed, you need to carefully allocate these resources in order to turn a profit. It is quite literally a real-life business simulator. A fun one for sure, colorful, cute, and simplified, but the core concepts are right at home in our financial world. In Stardew Valley, you plant crops and sell them for profit. You then use that income to buy better tools, expand your farm, and upgrade your skills. In real life, your salary is your starting resource, and your bills, groceries, and entertainment are like in-game expenses. The key skill here is prioritization. You need to decide what’s most important and allocate your funds accordingly. Video games like Stardew Valley are a great way to practice this.
Choices & Sacrifices
Setting a budget is about making choices. When we choose to spend money on something, we forgo the opportunity to spend it on something else. Therefore, being skilled at recognizing the consequences of certain financial decisions is vital. The concept is called opportunity cost, and it’s an element present in every aspect of the hit RPG – Baldurs Gate 3 (BG3). In a single playthrough, you can’t possibly afford every magic item, learn every spell, or befriend every NPC. You must choose, sacrifice, and face the consequences. In BG3, you are confronted with opportunity cost right with the game’s first and most fundamental decision: selecting a class.
Each class offers unique features that affect every element of the game, from your abilities in combat to your dialogue options in conversation. Sure, wizards can cast powerful spells, but their hit-point total is measly. Alternatively, the Barbarian gives up spellcasting in exchange for a boatload of hitpoints. But neither is as good at avoiding a fight as the charismatic bard.
Back to budgeting, it’s like prioritizing a new car over saving for a vacation. Both purchases appeal, but understanding opportunity cost allows you to consider what is to be gained from each choice and decide which best fits your priorities. Just like choosing a class in BG3, every financial decision involves a trade-off. Recognizing this empowers you to make good choices.
Grinding & Delayed Gratification
Games often reward players who focus on long-term strategies. That’s why, in games like Minecraft, “grinding” is the key to success. The term ‘grinding’ refers to the repetitive act of performing a specific task to accumulate resources or experience points. In Minecraft, for instance, players might spend several hours mining for diamonds. Why? Because diamonds are a valuable resource needed for crafting powerful tools and armor. Grinding can be tedious; not every gamer is willing to do it, but those willing to invest the time are rewarded. Grinders are able to enhance their game experience later by maxing out resources in the early game.
The grind mindset resembles the consistent work and discipline required to build and maintain your savings. Just like accumulating resources in Minecraft, consistency, discipline, and patience are necessary to save successfully. The transferable skill here is the concept of delayed gratification. Grinding in Minecraft requires sacrificing immediate enjoyment (exploration) for a future benefit (powerful gear). Similarly, consistent saving requires sacrificing some immediate spending pleasures for the long-term benefits of financial security. Skipping a treat here or resisting a temptation there might seem insignificant, but these small, consistent savings add up significantly over time.
Conclusion
Video games offer a fun and engaging way to develop financial literacy. Skills and mindsets developed in-game are transferable. Learning to prioritize, weigh sacrifice, and delay gratification will help you to achieve all manner of financial goals. Whether you’re saving for a dream holiday, chasing jackpots on crypto betting sites, or building a business, consider your next gaming session an investment in your financial future.
