Use Gamification to Meet Financial Goals What Is Gamification?

The basic concept of gamification isn't new, but the word itself is a 21st-century addition to the English lexicon. The word refers to the incorporation of game elements, like point and reward systems, to tasks as incentives for people to participate. In other words, gamification is about making something potentially tedious into a game. Gamification is effective because it taps into people's natural desires for competition and achievement. Teachers, managers, and others use gamification to increase participation and improve productivity. Gamification is also often an essential feature in apps and websites designed to motivate people to meet personal challenges, like weight-loss goals and learning foreign languages; tracking your progress is more fun if it feels like a game.

From fantasy to reality

Gamification isn’t just about making investing fun, or empowering investors. It’s becoming a serious business. Wealth and asset managers of all sizes are developing their capabilities. And this is no niche strategy. Gamification can be applied to mass affluent, high-net-worth and institutional relationships. For example, insurers or pension funds could use gamification to help their own investors build a stronger connection between their finances and their real lives.

How to Use Gamification to Meet Financial Goals

Different gamification methods and platforms are suitable for different people. Here are some of the most common strategies and how to apply them to your own savings or investment goals:

Challenge yourself.

 If you are not super competitive but consider yourself "result oriented", consider using apps like Acorns or Qapital to set goals and watch your savings grow.

Compete with others. 

If you are naturally competitive, an app that allows you to track progress with friends and family such as Twine or adopt the PLB model may help you spend more wisely.

Seek cash rewards.

 If you are most motivated by cold hard cash, apps like Digit or banking programs that issue bonuses just for depositing funds into your account may be a way to make your money work for you.

Build a virtual world.

 If you’re the kind of person who spends countless hours tinkering in games like SimCity or Roblox, apps like Nestlings and Fortune City may entice you to make smart financial moves to advance your virtual character’s storyline.

Gamification is a very effective way to change user behavior, and it can have a unique impact on personal finances-many people think this is a boring or incomprehensible field. But it is important to pay close attention to personal goals, goal consistency, and choosing the right rewards to make your gamification plan successful. For those seeking to improve financial management habits, adding interesting twists to traditional spending or savings may be worth exploring.

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