Games Used in Japan for Educating Children on Investments

May 20, 2018

Tokyo- Easy access by children to financial settlements by smartphone has left an increasing number of parents in Japan facing unexpected high bills.

Private-sector efforts are gathering pace in the nation to help children develop knowledge about money and investments, in response to growing opportunities for minors to conclude contracts.

Through education using games, the financial industry also hopes to nurture a wider range of future investors.

The Association for the Promotion of Financial Literacy, a nonprofit organization, has developed a card game called Economica, which allows two players to compete to increase their "assets" in simulated economic environments, such as deflation, a drop of the yen's exchange rates and sustainable economic growth.

Sumitomo Mitsui Asset Management Co. organizes competitions on Economica in many parts of Japan and plans to hold a fourth national event in August.

"In games, even difficult economic terms can be memorized like magic words," an official of Sumitomo Mitsui Asset said.

A boy in elementary school sixth grade who took part in an event in Tokyo's Arakawa Ward in April said, "I'm aiming for the championship (in the national event)."

Major toy maker Tomy Co., which sells Japanese versions of The Game of Life, conducts educational assistance activities using the time-honored board game at an elementary school in Tokyo's Adachi Ward, located near its head office.

The Game of Life has racked up total sales of 15 million units in the 50 years since its launch in Japan.

"Many buyers told us that they learned from the game the meanings of terminology including debt and stock certificates, as well as the importance of money," an employee involved in the development of the game.

Financial Academy Group, which holds financial classes and seminars, is promoting Happy x Project, a card game for financial education for elementary school children. It organizes a learning project using the game in Tokyo.

The game is unique in that players not only compete to increase their money but they also gain more points if they put money to more effective use.

"How to use the money you earn from work is a factor that matters to making your life happy," an official said. "We hope children will acquire this (the right attitude to money) by using our game."

The Central Council for Financial Services Information, comprising mainly the Bank of Japan and financial industry groups, has drawn up financial literacy programs for children by age group in an attempt to help them gain the financial knowledge and skills they need, as officials put it, to "survive safely in society."

Financial literacy has become increasingly important since the global financial crisis exacerbated by the 2008 collapse of U.S. investment bank Lehman Brothers.

There are calls in the financial industry for stepped-up financial education amid the spread of defined-contribution pension plans, which can produce different investment returns depending on the decisions of individual members.

"The Japanese people's lack of knowledge about money is striking. We need to accelerate education on investments," an official of a major securities company said.

Investment games can be a springboard for children to start learning about financial affairs in earnest.

At the same time, however, there are concerns that such games can induce a mentality that puts profits first. Some officials also express worries that risks can be belittled, since losses in the virtual world are not really painful.

"I think that children should get basic knowledge on money before lessons on investment methods," said an official involved in financial education. Jiji Press