Financial literacy is vital to step into adulthood. Sadly, school education only teaches students a little about financial literacy. As a result, many adults struggle to manage their finances. Even though now financial literacy is available at the touch of a button, it still requires a push to ensure one is financially literate. Often, one is financially literate, but one fails to take the appropriate actions to implement financial literacy. Gamification can help one not only to learn but also to implement lessons of financial literacy.
What Is Gamification?
Before understanding how gamification can help financial literacy, it is crucial to understand what it is. Gamification includes creating challenges and competition and rewards for completing the challenges. What makes gamification an effective educational tool is that it rewards the user for reaching milestones.
Previously, gamification was only used for children. However, now it is seen that gamification can also help adults to learn new things. This fact has immediately increased the popularity of gamification, and now it is a buzzword in the tech world. Now that we know the meaning of gamification let us see the role of gamification in ensuring financial education.
1. Retention Of Financial Knowledge
Several studies have indicated that gamification improves the motivation and engagement of the learner. Gamified financial lessons are more enjoyable. Furthermore, it is more immersive and interactive, ensuring better retention for the learner. Gamification through its game elements ensures that the user develops good financial habits. For example, gamification can help one to learn how to use the winning money of Lottery Sambad to reap the benefit of the reward further.
2. Overcomes Psychological Barriers
Often, people find financial education boring. If not dull, for many people, financial education is very intimidating. Subsequently, it results in disengagement with financial literacy, which brings no or poor learning outcomes. Gamification helps the learner overcome these barriers. Thus, gamification of financial education ensures that financial lessons are less intimidating and more enjoyable.
Gamification breaks all the complex financial education lessons into bite-sized, digestible chunks. Also, gamification ensures that it does that in both an engaging and fun way.
3. Improves Financial Decision-Making Skills
Gamification, by helping in financial literacy, improves the learner’s financial decision-making skills. Financial apps often include gamification in that they present users with realistic economic scenarios like whether to invest in Kerala State Lottery, stock market, mutual fund or other investment types to maximize the return on investment.
Thus, gamification helps users apply all the financial knowledge they have acquired to real-world situations. Therefore, gamification in financial education encourages learners to think critically, analyse financial data, and make informed financial decisions. Gamified financial education courses and programs help create a better understanding of financial concepts. Also, it equips them to manage their finances more effectively.
4. Personalized Education
Another significant advantage of gamification in financial education is that it provides users with more personalized lessons. The gamified lessons tailor themselves to the preferences and needs of the learner. The tailored financial education helps the users learn better as it customizes itself to their learning pace. Personalized literacy education allows users to understand better.
5. More Accessibility
One-on-one coaching on financial education is expensive for many. However, it is not the case with gamification, which is more accessible than such coaching and affordable. Many mobile apps that use gamification to provide users with free education are available.
How Does Gamification Ensure Financial Education?
Firstly, gamification in financial education challenges the users to challenge themselves. The outcome-oriented nature of gamification pushes one to learn the necessary lessons. Also, gamification not only challenges oneself but also drives healthy competition against one another. This nature is beneficial for anyone competitive in nature.
Gamification works for successfully implementing financial literacy because it involves powerful and real emotions within the user. Also, the gamification reward system enforces a positive learning approach which motivates one to continue their lessons.
Gamification in financial literacy helps one incorporate a deeper understanding of complex financial education in a less intimidating manner. Even though managing finance is not a game, the gamification process makes it easy. Therefore, anyone who is struggling with financial literacy should give gamification a try to become financially literate. Even though there are challenges associated with gamification in financial literacy, its benefits are numerous; therefore, it is worth a try.