Improving monopoly through youth financial education
From a young age, we are taught the wrong things about money and business. Consider the wildly popular Monopoly(R) board game. The game was developed by an engineer at the beginning of the 20th century. In a world of Robber Barons and in the genesis of Scientific Management as a management science, it is possible that a strictly win-lose game could be an accurate teaching tool about business. To me, this is a grossly inaccurate way of teaching young people about business in a Knowledge Economy, where success is much more about fostering cooperation, sharing ideas, and mutual success. Today’s business environment is all about fostering win-win relationships. It’s a great time to be running a business.
I love Monopoly(R), but have found that some minor rule changes can make it a much more accurate description of business today. It also makes the game move faster and allows you to teach negotiation lessons and the art of creating win-win solutions in business.
Rule 1) All rents are paid by the bank
Rentals are not paid by other players. When a player lands on another player’s property, this simulates the market giving buy signals to the owning player.
Rule 2) Payroll
Each time a player passes “Go”, the player must pay 10% of the purchase price of all properties (both mortgaged and non-mortgaged). This simulates running the monthly payroll and teaches the player the importance of cash flow management.
Rule 3) Partner ownership.
Players can team up to form monopolies and split the profits as agreed. Property ownership is no longer a game of attrition. It is recommended to make deals much earlier in the game. In the traditional game, many players wait until almost all the properties are acquired to start making deals, which lengthens the game. In business, seizing opportunities quickly is vital to success.
Rule 4) Private loans
Players may lend money to other players under any mutually agreed terms. Successful entrepreneurs know that a lack of money is rarely an obstacle when the opportunity is excellent. Part of the art of making deals is putting together a team that has all the necessary resources. Often, one of the parties provides financing.
Rule 5) End of the game
The game ends when the last hotel is sold and therefore the market has reached “saturation”. This teaches the importance of acting quickly and encourages making deals as soon as possible.
Simple rule changes like these can reinvent Monopoly(R) and make it a much better learning tool.
