How to Teach Accounting With Monopoly
Teachers often struggle with finding ways to maintain the attention of their students when teaching new information. One way to teach new skills is through activities with which students are already familiar. For example, accounting teachers may consider using the board game Monopoly to teach principles of accounting. Many students have played the game and understand the concepts of using money to purchase property. Teachers can incorporate other accounting principles in an entertaining way and maintain the attention of their students.
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Things You'll Need
- Monopoly board game
- Pencils
- Calculator
- Profit and loss statements
- Balance sheets
- Statement of cash flows
Instructions
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Pass out the profit and loss sheets and ask the students to predict their expenses and income while playing the game. One trip around the board equates to one month on the profit and loss statements. The students will write the expected amounts on the sheets. An example is "Gross Profit: $200 for passing 'Go,' Total Expenses: $400 in real estate purchases and Net Profit: -$200." A second profit and loss statement will document actual expenses and income. You may also provide "checks" and receipt books to document purchases.
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Explain to the students the comparison between playing the game and managing personal and business expenses in real life. Discuss the importance of anticipating expenses and estimating income generated. Explore with them the consequences of not planning ahead, such as running out of money and losing the business or their homes. Also discuss the importance of documentation of expenses and income for verification of these transactions.
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3
Play the game according to the instructions. Each player will either use the "money" or checks to make purchases or pay rent and will provide receipts for transactions. After each player goes around the board, he should calculate the income and expenses for that round/month, and complete the predictions for the upcoming month. Continue playing the game and provide more profit and loss statements as needed.
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Compare the initial predictions and actual expenses and income with those from later rounds. Students may plot their results on a graph. Net profits are indicated on one axis and time in months on the other axis. Determine if the students became more accurate predictors as they played the game. Determine which player had the most profit at the end of the game and explore how this player profited more than the others.
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