Most people either justify video games as “entertainment” or vilify them as “time-wasters.” With a few exceptions (the Wii can actually help you become physically fit) they are almost never thought of as a tool for learning useful life skills. And yet even in those games that are not labeled as educational, where the game play consists primarily of blowing your enemy to bits, it is possible to learn some things that are useful in personal finance, often without even realizing it. Plan well, conserve your resources, and form alliances — these things come up regularly and are just the start of what video games can teach you about personal finance:

World of Warcraft

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Beyond the fact that spending time at home playing WoW is more cost-effective than going out to bars, clubs and pubs, there are several legitimate lessons to be learned, applicable for both the business world and for personal finance. For one, players don’t level-up without paying their dues, much like in business, where it is also important to forge lasting relationships (alliances). Secondly, it teaches one the value of money (gold), how much time and hard work can go into earning it, and what it takes to manage it — purchase of X precludes or may limit the purchase of Y. Also, in WoW it becomes easier to earn gold as you progress; just as should be the case with the real world, the harder you work at something (play the game), the higher the return you receive.

What did we learn?

Staying-in is the new going-out. People are beating the recession by substituting their world of wasteful spending, with the World of Warcraft. A month long subscription to World of Warcraft can cost less than $0.50 cents per day, which otherwise wouldn’t even cover the cost of a parking meter during a night out on the town. Get creative with your free time. The potential savings are enormous.

The Oregon Trail

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Although we probably didn’t realize it at the time, The Oregon Trail provided us one of our very first lessons in the importance of life, liberty, and the pursuit of happiness. This “educational computer game” was built to simulate the struggles of a 19th century family as they traveled vast distances in hopes of fulfilling their vision of Manifest Destiny. But the game was unusually difficult for some children to grasp. With very little room for error, The Oregon Trail took ill-prepared pioneers on a journey that would inevitably end in famine, infectious disease, and a long list of equally horrifying scenarios. Not only was The Oregon Trail a game, it was a harsh lesson in the unpredictable nature of life.

What did we learn?

When it comes to personal finances, always hope for the best but prepare for the worst. In a world filled with unexpected downsizings, enormous layoffs, and more competition for few jobs than ever before, preparing for the worst is no longer an option. It’s a responsibility. Create a budget, keep track of your expenses, look for unique ways to save, and do whatever it takes to reach your own financial (manifest) destiny.

Sonic the Hedgehog

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At a time when the gaming world was in dire need of a new hero to lead them into the next era of consoles, Sonic the Hedgehog made his grand entrance onto the scene as a flagship title for the Sega Genesis. The Genesis console was SEGA’s first legitimate attempt at proving that they had a brand and a product that was worthy of stepping into the ring with the undisputed heavyweight champion of gaming, Nintendo. And just like that, one of the fiercest console wars in video game history was born. Almost immediately, the world was hooked on Sonic’s distinctive look and radically different spin on Nintendo’s weary approach. One of Sonic’s best tricks was also one of his most unique. Instead of dying like most other characters would, Sonic would first lose all of the golden rings you had collected up to that point. Although it worked out in Sonic’s advantage most of the time, it’s never nice to know that everything you’ve ever worked for is constantly at risk.

What did we learn?

Sometimes the best offense is a good defense. Protect your assets at all costs and don’t be afraid to pull out all the stops when it comes to securing your identity. There are services and agencies which specialize in protecting against cyber-related crimes, and many have developed a flawless reputation for doing so. And if that’s asking too much, at least do a quick search for easy ways to protect yourself from becoming another statistic of identity theft. And, at the very least, make sure you don’t carry all your rings around in your pockets — you could lose them.

Grand Theft Auto IV

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When they weren’t busy revolutionizing the gaming industry with groundbreaking new titles, single handedly prompting immediately legislative reform, and exchanging blows with some of Washington’s most influential politicians, the team behind The Grand Theft Auto series taught us that there are only two types of debt-collectors in the world: Those who use a telephone, and those who prefer to take things into their own hands. But as anyone who’s ever been on the wrong side of debt will tell you, actions don’t always speak louder than words.

What did we learn?

Armed with a telephone, a condescending attitude, and the uncanny ability to wake you up early on your only day-off, debt collectors seem to find meaning in making your life hell. If you’re already in debt, the worst possible thing you can do is ignore it. Not only will it be detrimental to your blood pressure, it’s also a good way to ruin your credit for life. Take small steps in connecting with your debt-collectors. You might be surprised how flexible they’re willing to be.

Madden NFL 10

Wikimedia Commons (Madden with friend)

While scouring Madden NFL 10’s labyrinth of leaderboards, stats, financial data, and revenue generators, two things become blatantly obvious. Number One: Terrell Owens might be the most overpriced player in football. And, Number Two: there’s no good reason why we all can’t have detailed breakdowns of our salaries, expenses, personal finances in an easily digestible format. Madden’s Franchise mode allows you to take control of any team in the NFL, which gives you access to data on player salaries, revenue generation, and fund distribution. In other words, it’s like the ultimate digital checkbook you’ll probably never have.

What did we learn?

Luckily, you don’t have to be a professional athlete to keep track of your finances. Websites like Mint.com are simple enough to be used by anybody and give you an at-a-glance overview of all of your income and spending. It’s all about the data. Further, mobile apps like Mint.com’s iPhone app have made it possible to track your expenses down to the penny while on the go, all in a sleek, detailed, and easily accessible format.

E.T. The Extra Terrestrial

Let’s face it – video games aren’t cheap. In fact, they never have been cheap and you shouldn’t expect that to change anytime soon. To make matters worse, nearly all video games are sold at the exact same retail purchase price regardless of quality. You’ll fork out the same amount of money whether you’re purchasing the best game ever created, or a heaping pile of dung. That’s where E.T. The Extra Terrestrial comes into play, considered to be the absolute worst game of all time. The game was marketed as the next big thing in gaming, but did little to impress. The game was plagued by rushed deadlines, which caused the developers to release an effectively incomplete game. Before the internet and video game critics came to be, we were left to believe what the marketers told us about their products and not much else.

What did we learn?

Whether you’re purchasing a new car or a loaf of bread, take time to think out the purchases that you make. Sadly, the days of impulse buying are gone for a large percentage of us. Be skeptical of the hype surrounding new trends and gadgets, and make sure you know what you’re getting into when you pull out that credit card. An educated consumer is a powerful consumer. Take advantage of information and product reviews readily available online – take advantage of what consumers didn’t have access to 25 years ago.

Counter Strike

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Counter Strike has long been one of the more successful first person shooters of all time. Long after its release, it continues to be one of the most popular games played worldwide. But upon closer look, it’s noteworthy just how relevant Counter Strike is to personal finance. The game gives each player a budget to start out with in each game. At the beginning of each round, this budget is used to purchase better weapons and upgrades, which subsequently increase your chances of success.

What did we learn?

Strategic financial planning can yield big rewards both in the game of Counter Strike and in life. Sure, you could spend your entire budget in the very first round and see marginal results. But, the players who can manage their budget to withstand the test of time, are often the players who end up with the best weapons at their disposal in the final rounds.

The Sims

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They say art imitates life, and perhaps there’s no truer application to this saying than The Sims… the game that simulates real life. The Sims is an example of how one man took a concept so simple, yet so necessary in today’s culture, that it would eventually sell more copies than the population of some small countries. The Sims went on to become the highest selling PC game of all time, and the rest is history. The game was responsible for showing us just how satisfying it can feel to take a blank canvas, help it grow, and then watch it flourish into a masterpiece. Through hard work, patience, and a little financial ingenuity, The Sims taught us all sorts of life lessons.

What did we learn?

Success and failure in The Sims can be closely compared to the successes and failures of your everyday life. Much like the real world, The Sims rarely rewards laziness. So unless you’re banking on winning the lottery, realize that the financial world revolves around hard-working, diligent, and goal driven individuals.

Dungeons & Dragons Online

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One of the very first forms of geek-culture to infect the mainstream was Dungeons & Dragons, which is a role-playing game that was played by rolling dice, cards, and whole lot of imagination. Thankfully, technology has provided us with a less shameful and more anonymous way of living the D&D lifestyle. Much like World of Warcraft, Dungeons & Dragons Online is an ever-evolving world that gives you the ability to conquer things much bigger than yourself. What many people don’t realize is that D&D Online features a deep-rooted entrepreneurial driven economy, with players using their skills, talents, and products as a means for virtual financial success.

What did we learn?

A trip to one of the many auction houses in D&D Online can allow you to walk away with some killer deals. When wholesalers and consumers directly connect, both parties can benefit greatly from the absence of a “middle man”. A real-world example of this concept can be found on Ebay, Craigslist and many other online services that facilitate and encourage the connection between wholesalers and consumers.

The current recession has hit finance harder than any other sector. (The only one that even comes close is real estate). In the present crisis some banks have gone hat in hand to Congress for bailout money to keep them afloat, while many others have simply vanished. CNN Money reports that 92 banks have failed in 2009 alone. To keep this in perspective consider that not even 10 banks failed in 2007. It’s not all bleak though. Amidst all the turmoil, struggling banks have joined forces, and several entirely new banks have opened for business in just the last year. Today we will profile the new banks (and a few mergers) that have opened since the recession began.

Ally

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The online-only bank Ally, formerly known as GMAC Financial Services opened for business in 2009. At a time when customers are more suspicious than ever of banks (brand consultant Rick Barrera likens it to, “…walking down the dark alley with your arms up” according to the Wall Street Journal), Ally has positioned itself as the ultimate in courtesy, support and trust. The branch-less nature of the bank allows Ally to operate without monthly fees, minimum payments or minimum deposits, and their “Tier 1 capitalization leverage ratio is almost triple what is deemed “well capitalized” under the FDIC’s regulations”, according to Ally’s website.

Aldermore

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The dearth of new banks extends beyond the US and into Europe, but at least one UK bank has decided to open its doors amidst the recession – Aldermore. Billing itself as a “new name in British banking”, Aldermore is a relaunch of Ruffler Bank, according to the UK’s Guardian. Its primary selling point is a lack of involvement with the sophisticated securities and investment vehicles at the heart of our currently financial crisis. As the Guardian explains:

“It will be dead simple, old-fashioned banking. We don’t have any ‘back book’ of toxic debt, we are British, regulated in the UK and will provide consistently good rates to savers.”

The bank, which is, “…the first new bank to launch in Britain since the onset of the credit crunch”, chose to open under the name Aldermore because, “…alder is an ancient British tree that grows well while others fail.” It also aims to become known for its exceptional rates on savings bonds – currently offering anywhere from 3.69%-5.11%. At a time when savings are on the rise, Aldermore could be positioned for superb growth.

California General Bank

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On March 23, 2009, Reuters announced the opening of California General Bank, the only bank to open in all of southern California this year and one of only two in the entire state. Starting out with $20 million in capital, Pasedena-based California General bills itself on its website as a, “…community business bank specializing in the financial needs of the small to medium size privately owned business, professionals, and high net worth individuals.” All eyes will be watching to see how the fledgling young bank handles its first few years of existence amid the worst economy in decades.

Coastway Community Bank

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In its article “Coastway Becomes RI’s Newest Bank”, MoneyAisle.com discusses Coastway Community’s transition from a credit union to a full-service bank. As they explain, the newly formed bank is now free from the burdensome regulations it had to contend with as a credit union:

“As a credit union, the maximum Coastway could write in business loans was 12.25 percent of its assets. That was $36 million. The actual amount Coastway had in business loans as a credit union was almost double that at $70 million. It was able to do this because of federal guarantees mostly made by the Small Business Administration that guarantee up to 75 percent of a loan.”

Coastway is one of several financial institutions that have re-branded themselves or, in some cases, re-opened with a totally new array of services since the recession began.

Ann Arbor State Bank

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Ann Arbor State Bank opened its doors in December 2008 just a few months after filing for permission to operate. Starting out with $10 million in capital, founder Bill Broucek, a 47 year financial industry veteran exclaimed, “…it’s the very best time to start a bank because of the problems other banks are having” according to Michigan Live. The bank (which uses just one branch currently), was created in order to, “…target small to medium-sized businesses and professional organizations in Washtenaw County, specifically Ann Arbor, as well as offer retail banking and loan services for individual customers.” This seems to indicate a trend in new bank openings during the recession – start small, with growth engaged in only after solidifying one’s roots.

TD Bank

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Following its 2008 merger with Commerce Bancorp, TD Bank has opened several new banks. Most recently, TD has launched, “…its largest US initiative by opening a full-service bank center in downtown Boston, a move that will fill a big gap in its New England footprint” according to Boston Business Journal. And this branch is just the start. The BBJ goes on to explain that TD Bank is looking to aggressively expand its presence, opening several more banks despite the economy in efforts to “build its Boston-area deposit base by several hundred million dollars.”

Farmington Bank

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A major trend in banking during the recession has been rebranding existing banks, in an attempt to distance themselves from past perceptions. One of the more recent banks to utilize a branding strategy is Farmington Savings Bank, the long-standing Connecticut bank that will, effective in October, be known simply as “Farmington Bank.” According to HartfordBusiness.com’s article on the now-widespread practice, bank rebranding is much more than simply a name change.

[Farmington President, Founder, and CEO John J. Jr,] Patrick said the bank is dumping “Savings” from its name because it signifies a smaller institution that has only limited offerings.

“As we talked to a broader spectrum of influences in the region they didn’t realize we had the commercial lending capacities we now have,” Patrick said.

“We are not just a savings bank anymore and we want the name change to reflect that.”

Farmington is the latest in a series of bank rebrandings, including our last entry, TD Bank (formerly known as TD Bank Financial Group).

JP Morgan/Bear Stearns merger

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The bank merger perhaps most relevant to the recession was the sudden marraige of JP Morgan and Bear Stearns. In a deal orchestrated and largely financed by the Federal Reserve, JP scooped up its fallen competitor for a song and a dance, paying only $236.2 million (or roughly $2 per share.) According to MSNBC, the deal represented, “…a 93.3 percent discount to Bear Stearns’ market capitalization as of Friday, and roughly a 98.8 percent discount to its book value as of Feb. 29.” In exchange for the unprecedented discount, JP agreed to guarantee all of Bear Stearns’ business – particularly its trading and investment activities, which the Fed felt were too important to leave to chance. The combined entity is known simply as JP Morgan, and it is unclear whether the Bear Stearns name will surface again.

SJB National Bank (Coming Soon, Presumably)

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Miami Dolphins owner Stephen Ross has been given the green light to charter a new bank, according to Bloomberg. Tentatively called ‘SJB National Bank’, Ross is said to be sharing majority ownership with Bruce Beal Jr. and Jeff Blau. Bloomberg also states that sources claim the new bank, “…will have at least $750 million of capital and may buy assets of banks seized by the Federal Deposit Insurance Corp.” While SJB will not begin operating as a bank until it is accepted by the FDIC, industry analysts expect no complications with either this or securing FDIC membership. This all follows Ross’ completed purchase of the Dolphins in Janurary for an estimated $1 billion.

Full disclosure: Ally is a MintLife sponsor but none of the banks included in this article, including Ally, had anything to do with writing it.

The noun bequest, and the verb, to bequeath, are those terms that are most often associated with the writing of a will. Essentially they refer to the language in your will, by which it is stated that how your physical property, which is usually not your money, will be distributed after your death.

What kinds of Bequest can be made?

A bequest can be made on behalf of a single individual by whom your physical property will be inherited , or it can also be made to benefit a group of individuals, a company, or a nonprofit or charitable organization.

To dispose large or small property

You are allowed to make bequests to dispose of large amounts or small amounts of property. Sometimes bequests are referred to as conditional, since they are based on certain instructions or wishes being carried out. For example you could bequeath a home to a family member provided they open that home as a museum. If the family member is not able to do so, for the disposition of that property then you might make other provisions in the will.

Residuary bequest

Residuary bequest is another term that is associated with bequests. This is the estate that remains after that specific statements have been made by you about distribution of property. You may then ask for distribution of residuary property to spouses, heirs, family members or organizations.

If you are adamant about certain property belonging to a certain person after your death, then you must mention it in a will, since anything that is not included in a bequest becomes residuary property, and it may be disposed of by heirs in any manner they like, even if you’ve informally asked them to comply with your wishes.

Extensive bequests

If you have extensive bequests that you want to make, then it is extremely important for you to have a lawyer draw up your will. The lawyer is able to determine that which property disposition statements that are made by you are legal within the state you are resident, and whether any heirs may be able to challenge a bequest. For example, if you are married or are under guardianship of another person, then legally you may not be able to make any bequests.

Though it can be challenging to think that who will get your property after your death but it’s common knowledge that the least specific wills or no will at all, especially when quite a bit of property is involved, tend to be a touchstone for family divisiveness and ill will, they effect the relationship of even family members or friends on good terms with each other. Therefore, making bequests, and making your wishes clear can help smooth strained relationships in what will already be a difficult time for those who survive you.

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