April is Financial Capability Month. To help mark this occasion, two students offer their perspectives on their very different experiences in obtaining financial education.
Growing up, I’ve been fortunate enough to have a father who has educated me on fundamental financial principles. In my house, terms like P/E ratios, EBITDA, ROI and diversification are a part of our regular vocabulary.
From selling lemonade as a young child to buying my first stocks at age twelve, business, entrepreneurship and finance have always been a part of my life. Seeking to expand my love of investing to others, I co-founded an investment club at my school called “The Blake Asset Management Group” in an attempt to give my peers and me a chance to test our investment acumen in a real-world setting.
While I expected our club’s first meeting to revolve around potential investment ideas, I was surprised to see that most of those in attendance actually knew little about stocks, and even fewer knew how to analyze a stock at the most rudimentary level. Most surprising was the number of students who lacked an understanding of broader and more important general financial literacy concepts like interest, diversification, and the importance of saving.
Recognizing that it would be difficult to run a club where few members possessed the necessary knowledge to invest, the leadership team and I restructured our club’s focus. We decided to measure our success not by the investment profits we generated but rather by the number of students we educated. Consequently, I designed and created a financial literacy course and made it available to all students at my high school.
The initiative, which was taught through the club, was a major success. Due to strong demand, what was initially intended to be a 5-week course turned into a 12-week class with interactive lesson plans and guest speakers. Students gained a thorough knowledge of basic financial concepts.