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Can the CashFlow 101 game teach you about your finances? Perhaps…

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Is anyone here a fan of CashFlow 101 game? Did you ever play the game before? I’ve been a keen player of the game for some time now. I’ve even introduced to some of my students over the years, even the younger ones enjoyed playing the game.

What is CashFlow 101?

Cashflow 101 is an educational board game designed by Robert Kiyosaki (author of Rich Dad, Poor Dad).

The aim of the CashFlow 101 game is to teach the players about investing and making their money work for them. The game provides a setting that is challenging yet informal while helping players some basic lessions in financial literacy. In playing the games, players find it easier to learn and use the basic principles of personal financial management.

Interview with the CashFlow 101 Game Designer

The CashFlow 101 game board is divided into two stages. The first is “the rat race” in which the player is given a basic bank account, spending habits, personal and mortgage debt and a salary. As the game starts, each roll of the dice determines what opportunities you have or what expenses you must make.

There are four sets of cards that determine different the assets and liabilities that you must take on. And each expense or income has to be adjusted. Players go around the rat race trying to accumulate the amount of money that will allow them to enter the fast track.

The promotion criteria is quite simple: that passive income generated in the game must exceed the expenses of the player. Given the different jobs, salaries and financial pictures, this can be quite a challenge!

Personal Comments

Cashflow 101 is actually one great board game. While I won’t go into the rules, as other websites cover this well, I will say that is quite an educational game. I’ve found it quite instructional in a number of ways:

  1. it can model our behavior patterns in a number of ways, esp. our spending patterns, our consumption patterns, our lack of savings as a financially less than capable society, etc
  2. it can model changes in behavior as people try out different strategies, occupations, savings rates, etc.
  3. it can show the longer term consequences of our actions by very quickly showing the results of our dependence on particular aspects of our financial management.
  4. it can show people how to monitor and record aspects of their financial situation, their balance sheet, etc.
  5. it is actually a lot more challenging to play than monopoly.
  6. and, as if you needed another one, it is actually fun to play, we can share our own ideas about money management and financial planning, because, oddly , as our societies consume, it seems there is less and less discussion of the positive aspects of financial management amongst people, and muce more talk about consumption.

You can watch this YouTube video that shows a CashFlow 101 game being played (in Russian, I think) but the game is English and it shows you what the game looks like, and give you a sense of how it is played.

Suggestions, Notes and Improvements

There are some flaws in the CashFlow 101 game that need some working on:

  1. you can ‘learn’ how to win the game, because you know which cards are likely to come up if you play this game more than a few times, there are fewer risks for those who gamble by borrowing money;
  2. stocks are grossly overly simplified, as are houses. You can generally do well investing in stocks, if you know what cards are likely to come up. Again, being more familiar with the cards can help you analyze which cards, so when you hear the offers, you buy them;
  3. there needs to be more challenge to the game for those who played more than a couple of times – so I’d suggest creating a book of separate missions that you can use to play your part in extending the games playability, perhaps increasing the difficulty of individual player’s positions by recreating real-life scenarios;
  4. and, the fast track is spectacularly dull to play, there is little complexity or variety. I think the Rat Race is far more interesting to play.

Financial Education: Commonsense at a price!

Overall, though, it is an expensive game for people to play at nearly $220. If you are interested in playing, perhaps head on over to the Rat Race Players’ (defunct) website for clubs near you. It’s worth a rainy or cool rainy Sunday afternoon!

[For those seeking more of a challenge, you can play CashFlow 202 which is an additional set of cards for the basic game board.]

Have you ever played? What did you think about the CashFlow 101 game? Did you enjoy it? Why?

Stock Brokers: Which online brokers can YOU use?

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There’re a lot of good sources of information on brokers for those who live (‘reside’) in the UK or US. But what about those of us who “don’t qualify”?

Are you NOT a US Resident? Oops, I’m sorry… We can’t help you.

Look no further. I’ve done a little research from the SmartMoney’s Annual Broker Survey, and not surprisingly they are listing a number of well known companies, newcomers and upcomers… But the list is ABSOLUTELY NO USE, if you are not a Resident of the United States nor a citizen.

I won’t go into why this is silly, but suffice to say, the lower the price of trades, the less likely the broker will accept international clients, like you and me. At least that was the rule, now it’s not so clearcut.

From the original 16 listed brokers, I’m making my own list of InvestorBlogger’s Short List of Brokers who accept International Clients (i.e. non-resident, non-U.S. citizen investors who would like to trade the U.S. markets).

  • 1. ETrade: One of the first brokers I applied, too. They approved my application, but the service wasn’t great then. It should be now.
  • 2. TDAmeritrade: Where my current brokers’ account is held. Fast, lots of resources. Service is available, but somehow distant.
  • 3. Charles Schwab: Did consider them, but they have quiet higher initial requirements, or at least did. You do have to register through their one of their international sites, not from the US site.

Other Serious Contenders included,

  • 4. FirstTrade also offers International clients trading services.
  • 5. OptionsXpress would allow me to register and fund an account, which was a surprise. They have branches in different countries, including Singapore
  • 6. Interactive Brokers allowed me to register, but I never completed the applications. I should have. The service allows you to trade many markets, not just the US.

7. Sogotrade, Zecco, Banc of America, all had slightly fussy processes or requirements but at least welcomed international investors.

One of the problems was finding the information. Often sites would require you to hand over your email address without stating clearly that you would be able to then register for an account. Other sites had the information hidden away in Help files or FAQs. Still others didn’t say openly that they accepted international investors, or directed me to ‘international sites’ which wasn’t helpful, (yes, you, Fidelity!).

I would strongly suggest that you read through the websites to find the best deals, the markets you want to trade, though the application requirements for most accounts are pretty similar:

  • 1. passport copy;
  • 2. proof of address;
  • 3. an application form;
  • 4. a W-8BEN form (for the IRS); and
  • 5. minimum account funding (at least!)

Once you register, you won’t have access to the full-range of US products, either such as IRAs or other accounts/services because of legal restrictions. But if you are in a country with a tax-treaty arrangement with the US, this may not be an issue!

Disclaimer: I’m a satisfied customer of TDAmeritrade, but there are no affiliate links in this post.