81% of parents believe their children are learning positive money habits from video games which feature in-game economies, currencies, and savings opportunities, according to new research from credit management firm Lowell.

With 90% of children in the UK playing video games and spending an average of £38 per month on in-game purchases, Lowell, has partnered with financial education charity MyBnk to survey parents around the role of gaming on financial literacy.

Lowell says the survey results suggest that while 89% of parents actively monitor their children’s in-game spending, many had their children asking questions about saving and budgeting after playing these games.

Parents believe their children have learned real-life financial habits from video games that could be applied to real life situations. These are the top answers that parents believe have benefited their children most.

MyBnk believes financial education should start as early as possible. According to a study by the University of Cambridge, by the age of seven, many children have already started forming their money habits.

The charity suggest that parents can help children to understand the real-world value of their in-game spending by getting their children to include gaming spending in their budget and encouraging their children to make choices with their own money.

“the language of money is a language for life”

DELAYED GRATIFICATION

MyBnk added that there are digital games that can teach positive habits that don’t even need to be money-orientated in topic. Skills such as delayed gratification (that occurs when waiting for a new level or skin to unlock, for example) and even basic habit formation (such as logging in everyday to complete a challenge) are all positive financial skills and habits that can form through gameplay. In terms of specific examples, games like The Sims and Animal Crossing both can teach about the importance of budgeting, the responsibility of home ownership, including bill and tax payments and the potential consequences of not paying these.

A MyBnk spokesperson said: “We believe the language of money is a language for life. Starting early with practical lessons in everyday life is key to raising financially confident and responsible young people.

“But also with greater financial independence for children and young people comes a greater risk of them engaging in such activity with less parent/guardian knowledge. Government-backed or mandated financial education for young people, including content around gambling, could be an essential tool in awareness raising of such activity.

“Parental controls for purchasing in video games could also be tighter, allowing parents/guardians to more closely monitor the activity of their children’s online spends and activity in-game. This is harder to mandate and difficult to control, but the guidance to parents on keeping their children safe online, including looking at online gambling regulation, could be improved.”

“Talking about money and debt within the family is essential”

John Pears, UK CEO of Lowell, added: “Talking about money and debt within the family is essential. It removes the stigma around these topics and ensures that children grow up with a healthy understanding of financial responsibility, helping people make less risky and more informed financial decisions.

“This partnership with MyBnk highlights how we can turn everyday moments, even gaming, into valuable financial lessons.”