Designing Low-Cost 3-D Avatars Enabled to Teach Compounding Concepts to Gen Z for Enhancing Financial Literacy by Leveraging Web3 Gamification for Financial Literacy
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http://doi.org/10.37648/ijtbm.v12i01.017
Abstract
Financial literacy among Generation?Z is alarmingly low, especially around compound interest and
credit. This paper presents an innovative, Web3-based gamified learning system that uses low-cost 3-D
avatars and visual narratives to teach compounding concepts. By integrating NFTs for identity,
interactive missions, and real-time compounding simulation within a metaverse environment, the
platform aims to engage 18–24-year-olds intuitively and enhance knowledge retention. A prototype
was implemented and evaluated with a randomized controlled trial (N?=?100) comparing it to traditional
text-based instruction. The Web3 gamified group outperformed the control group significantly (75?% vs
55?%, p?0.01), with higher engagement scores and intent to apply concepts. Qualitative feedback
highlighted the motivational effect of avatar growth and NFT rewards. Results show that Web3
gamification can meaningfully improve compound interest learning while remaining low-cost and
scalable. Limitations include gas-cost friction and novelty bias. Future work includes deploying
advanced financial topics, refining UX to mitigate over-gamification, and evaluating long-term
retention and cross-cultural adoption.
Keywords: Designing Low-Cost 3-D Avatars; NFTs; Financial Literacy; Web3 Gamification
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