Helping people distinguish between an Asset and a Liability helps them know what to do with their hard earned cash.
Since human beings are so good at Spending their money but terrible about Investing their money in assets, teaching your participants the simple rule to knowing an asset from a liability is key, and that key is:
Assets put money INTO your pocket.
Liabilities take money OUT OF your pocket.
…and they do so on a regular basis.
So, that home you live in that you THINK is an asset? Well, sorry to say that unless you have part of it rented out so that your income from the rents exceed the expenses (mortgage/loan, utilities, taxes, etc.), then your home is a liability. It is, however, the BANK’s asset.
Yes, it may be your largest INVESTMENT, but using our definition, it is NOT an asset.
Our Money Game Assets and Liability Activity is in the form of a debate, just like our Wants and Needs Activity. You and your players are going to love it.
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