The basics of finance are becoming more and more important to more and more people. As people seek to avoid the “rat race,” they realize that their main limitation is that they are not very financially educated. Tea cash flow game 101a financial education game created by Robert Kiyosaki, tries to change that.
The description of the game and the objective.
Cashflow 101 teaches people how to use a balance sheet, while at the same time teaching other basic financial knowledge. Players start out on an inside track called the “rat race” where they earn an income based on a randomly chosen career such as airplane pilot, secretary, etc. They receive their salary every time they pass “Payday”, and the higher their income, the higher their monthly expenses. The total income is recorded in the statements of account and balance sheet, and the dice determine the movements. As they move around the board, they can be affected by random events, such as “Kids” or “Doodads” that require them to pay, as well as options to invest in businesses and rental properties, increasing the player’s passive income. While they are on the “rat race” track, their goal is to find a way to make their income exceed their expenses by creating substantial passive income and reducing their expenses as much as possible.
This is Robert Kiyosaki’s definition of wealth; when passive income exceeds expensesand he feels that by playing the board game and transferring this principle to real life, people can achieve wealth.
As you play, you are learning about assets and liabilities. While “freebies” are fun to get and kids are important, their effect on your income is a “responsible” or negative effect. Too many responsibilities and your income will be eaten up quickly. At the same time, investments are “assets” that increase your income.
When the player’s income reaches an amount greater than their expenses, they go on “fast track”. In Fast Track, players win by earning $50,000 in revenue or buying their dream. To do so, they must purchase options to increase their income. Once the goal of the dream or income is achieved, the player wins the games.
Part of the fun of the game is watching the strategies of other players, as they try strategies that range from conservative to risky, and see how they pay off. Since there is a wide range of potential strategies that can work, and it is a gaming environment, they will try a few different strategies to determine which one works best. In the end, most players have fun, especially when they realize that the game teaches them extremely useful lessons that they can use in their real-life financial decisions.
like in your own life
Another aspect of the game is that your own real life financial problems, which have been created by your own choices, are highlighted. When it comes to dealing with money, do you let your emotions rule your decisions? Are your strategies too conservative or risky? You may learn a few things about yourself when you realize that the way you react during the game mirrors the way you react to situations in your own life.
One criticism of the game is that inversions play too large a role in the game, as Robert Kiyosaki, whose theories the game is based on, generally dislikes inversions, calling them too unpredictable. Otherwise, the game is good for learning financial theory, as it covers most aspects of building personal wealth.
the different flavors
Cashflow 101 comes in three basic varieties. There are two board games, one designed for children and one for adults. There is also an E-Game Cashflow that allows players to play against each other no matter where they are. The E-Cashflow is more complicated than the table game, since you have more options, including investing in shares. Although the game is somewhat expensive, with a price tag of almost $200, it is arguably worth it, as playing even once will increase your interest in financial theory. The cost could be worth it for anyone eager to escape the rat race.