Author Topic: Seeking Advice for Starting a High School Investment Club (real $)  (Read 1596 times)

MrMathMustache

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Hello all,

Several of my students love to talk stocks with me (and even more know nothing about markets but really want to learn), and we've decided that we want to set up our own club for the '18-'19 school year.  Back in high school, I belonged to a newly-founded club that pooled real money and invested in the market.  It was a fantastic experience and certainly helped educate me on the importance of saving and investing for the long term.  The problem is that I graduated in 1996, and I don't recall how our sponsors incorporated our group, and the mechanics of individual investing have changed so much that I'm not sure how relevant it would be anyway.  Further, most google searches turn up groups that do stock market simulations, not the real thing.  My old high school group still exists and I reached out to the current sponsors last evening and am awaiting a reply.  I've also found betterinvesting.org and still need to research its site more fully.  In the meantime, I need MMM forum help with two things:

1) what books would you recommend that I get for 14-16 year-old students who are enthusiastic to learn about markets, but don't have much or any background knowledge?; and

2) are there any umbrella organizations where I could get more information about the mechanics of incorporation for purposes of executing transactions, taxes, etc.?

Any assistance/advice is greatly appreciated!

gooki

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Re: Seeking Advice for Starting a High School Investment Club (real $)
« Reply #1 on: April 27, 2018, 04:46:22 AM »
If your doing it with real money, don't pool it, walk them through opening individual accounts with Vanguard.

Then maybe have them simulate investing the same amount in individual stocks, and track/compare to their real index fund.

Gone Fishing

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Re: Seeking Advice for Starting a High School Investment Club (real $)
« Reply #2 on: April 27, 2018, 05:14:35 AM »
If your doing it with real money, don't pool it, walk them through opening individual accounts with Vanguard.

Then maybe have them simulate investing the same amount in individual stocks, and track/compare to their real index fund.

I second this.

Cranky

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Re: Seeking Advice for Starting a High School Investment Club (real $)
« Reply #3 on: April 27, 2018, 05:40:24 AM »
Have them play the Stock Market Game. The spring session just finished, but there's a fall game and one that lasts all winter, too. They have TONS of resources, and you can arrange to have someone come and talk to your class.

boarder42

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Re: Seeking Advice for Starting a High School Investment Club (real $)
« Reply #4 on: April 27, 2018, 06:17:48 AM »
2nd the stock market game if you're going to do this (I wouldnt)- but really trading stocks is a poor way to teach about finance and wealth growth - may as well be starting a poker club.  Its fun b/c it gambling.  Teaching real life lessons about how to manage money and how to passively index are much more important than trading stocks.  - its fun but a bad lesson to be teaching IMO. 

A simulation tracked against indexes as mentioned above would be fun - but in such a small sample some could beat it and think they are better than the index.  Could use the bulk of the class as an example basically to show who beat it vs who lost to it but again such a small sample wont drive great results.

teach the real math behind how money grows and compound interest works - show the stats that the best money managers in the world dont beat the market every year - i think over 10 year periods around 15-20% of trained professionals beat the market - and the next 10 year period is a completely different group of funds.

Show buffett's quotes about passive indexing- explain what low cost means - and how simple DIY investing should be and how profitable it really is when you save money.  Teaching the kids about finance does not start with a game or exercise that is gambling.

canisius

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Re: Seeking Advice for Starting a High School Investment Club (real $)
« Reply #5 on: April 27, 2018, 07:22:45 AM »
Fellow Economics Teacher here.  The two books I share with students with investing are: Common Sense on Mutual Funds and the Intelligent Asset Allocator and then let them go to town with building spreadsheets.  I also use the simulations and personally, due to liability and the political nature of money and public schools, I would not recommend using real money, even if it's the kids' money.