Monopoly vs Real Money: what board games teach you about finances

Many friendships have been lost over a Monopoly board.

If this doesn’t apply to you, either one of two things are true:

1. you played it wrong,
2. you and your friends have a bond so strong you could survive the zombie apocalypse attack together.

But while you may have argued about who gets to play the thimble and who the car, and whether or not you will allow for someone who has gone bankrupt to take more money from the bank, subconsciously you were also learning about money management (I’ll give you a minute to digest this mind blowing piece of information).

Though Monopoly might be the most famous of these “teaching you financial lessons” games, it’s definitely not the only one.

Board games are a great way to passively learn information in a fun and interactive way, while they also help with putting financial theories into practice as you experience almost-real life financial situations (within the confines of the game, of course).

Monopoly

Staying true to its name, this game almost monopolises the board game market (bows, thank you, thank you).

In a game of Monopoly each player gets a fixed amount of money and according to a throw of dice, players move around the board where they have the opportunity to buy plots of land, build houses, pay taxes and rent, or in some cases even go to jail! The aim of the game is to stay financially stable while the game finishes when other players become bankrupt.

Aside from the oh-so-fun concept of the game, there are some very real life money lessons you learn by playing Monopoly.

One of them being: cashflow is key.

While it might look like purchasing the most properties will lead to a win, what happens when you suddenly have to pay taxes, or you pick an unlucky Chance Card with a high fee?

Financial ruin, that’s what!

Monopoly is a strategic game; it is a game of patience (especially when you play the life-sized version and you literally have to stand in jail - I mean who has time for that?!)

And remember, the most expensive properties aren’t always the best, or as I like to say, what shines isn’t always gold. Spending more money on a Monopoly property could result in a significant decrease in your cash flow. And no amount of girl math can get you out of that!

Catan

Taking us back to our roots, the classic game of Catan brings back bartering and forming settlements (yes, when I said takes us back in time, I meant faaar back in time).

In a similar way to Monopoly, it’s about “purchasing” the majority of the board, or in this case, expanding your settlement. You pick a starting point, you gain the resources your land has, and you use those resources to trade, barter, and expand your settlement with the ultimate aim to gain the most points.

What Monopoly might lack in soft skills, Catan makes up for.

Catan teaches you important interpersonal lessons about communication and negotiation. Since bartering is the driving force of the game you need to know how to work with others in order to strike a deal that can be beneficial to both.

It is a game that teaches you about opportunity cost and showcases how in the game, just like in real life, some of those choices will end up paying off, while others not so much (you win some, you lose some, buddy). You should always stay flexible, adapt and adjust.

Payday

Now that’s what I like to hear!

And that’s what the players of this game also like to hear.

The board of Payday consists of a monthly calendar and at the start of the game players decide on how many months, or rounds, they want to play for. According to a dice throw, players move across the board to determine whether they are going to receive or pay money.

Sounds simple enough right? But what of its hidden messages? (pensively stares out of the window.)

You see, Payday is designed keeping in mind what the average person goes through during a month. They get paid and then according to each month they might have different expenditures or money gains.

It is a game that teaches you how to budget and account for different living expenses. One month you might be in luck with money coming your way, the next month could see you landing on all the wrong squares and you could end up having to borrow money from the bank.

If there is one key takeaway: budget and save, because you never know how your month is going to play out!

Save Money in Jars

The Game of Life

When you play the Game of Life, you win or… you lose all your money (please tell me you get the reference?).

Although a tad less dramatic than a certain Game of Thrones, The Game of Life lets players choose different paths in life (cue Sylvia Plath’s fig tree) and make and lose money accordingly. From going to university or starting a job straight away, to choosing whether or not to have kids, it gives Catan a run for its money when it comes to opportunity cost.

It is a game that teaches players about the financial complexities of everyday life, while also teaching you direct lessons about managing your finances.

I sound like a broken record by this point, but the key takeaway? Always be prepared – cash is king and you need to have the liquidity to be flexible in case unexpected costs arise.

I’m afraid being an adult comes with an abundance of freedom… and financial responsibilities, i.e. car insurance, life insurance, house insurance. You get the picture.

Key takeaway: taxes are inescapable (pulls hair and screams into the void) but no matter what happens in life, you can always bounce back!

These games are valuable not just for applying theoretical knowledge, but also for teaching important skills like negotiation, communication, money management (both wins and losses), and developing personal finance strategies.

However, if there is one common denominator to be found within these games is that the winner is the one who can master patience. The winner is usually the one who is able to hold out and go all the way.

While there's much to learn and gain from these board games, it's important to remember that they are just games, and many elements are unrealistic, often depending heavily on luck.

But do you know who luck favours? Those with wise, prepared minds.

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Disclaimer:
*This article is by no means providing financial advice, but rather, outlines in the author’s best understanding, how these specific board games operate, and different financial lessons people can find within them.

*This list does not represent Wise or the author’s endorsement for any of the products discussed.