Adam Carroll discusses his $10,000 Monopoly experiment with his kids and the implications of a cashless society on financial management.
Carroll highlights the challenges and potential pitfalls of financial abstraction and the importance of teaching financial responsibility in a digital age.
The impact of financial abstraction
The concept of financial abstraction, where money becomes more of an idea and less tangible, changes how people interact with it.
This is evident in children making unauthorized in-app purchases, Disney’s investment in a wearable device that makes spending money easy, and teenagers thinking $100,000 is insignificant because they have virtual money in a video game.
The $10,000 Monopoly experiment
Playing Monopoly with real money demonstrated how the perception of money changes behavior.
The participants, Carroll’s children, showed different strategies and attitudes towards money when it was tangible.
This experiment highlighted how the abstraction of money in today’s society can impact financial decision-making.
The consequences of digital transactions
The shift from cash and checks to digital transactions further abstracts the concept of money.
For digital-native youth, spending often equates with credit and debit cards, Google Wallet, and other digital payment methods.
However, lack of education about the consequences of this abstract spending can lead to financial disaster.
