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| Adrian Mastracci, president of KCM Wealth Management, says
"I am a fan of school investment clubs because they teach children the methodology
of investing. This will help them secure their own financial success when they
venture out." |
By: Adrian Mastracci
CAFP (BC) Newsletter
June 2002 Issue
School investment clubs are a great way for students to learn the principles
of investing.
The work of parents and grandparents in educating children and grandchildren
on the values of investing is a true long-term commitment. We naturally want them
to mature into young adults who are ready, willing and confident to look after
their investments needs.
The school investment club environment is very conducive to learning the art
and science of investing. With cooperation among school administrators, teachers,
parents and grandparents, the investment club is both fun and effective in teaching
children the values of investing.
I am a fan of school investment clubs because they teach children the methodology
of investing. This will help them secure their own financial success when they
venture out. Thankfully, there are many helpful resources for schools to initiate
and maintain a successful student investment club.
Here are some suggestions for a successful school investment club:
- Make the club a fun experience within the learning environment. A slice of
pizza for everyone at some of the meetings has lots of appeal.
- The first ingredient is for school administrators, teachers, parents and
grandparents to get involved with the students and work together towards establishing
a successful school club.
- Peruse the resources available from the Canadian Shareowners Association
(CSA) found at <www.shareowner.ca> and the National Association of Investors
Corporation (NAIC) found at <www.better-investing.org> that may be helpful
in assisting with the formation and operation of a school club.
- Decide whether the school will support the cost of startup and running the
investment club, or whether the invitation of local businesses to help sponsoring
the club is valuable.
- Involve students from the start, prepare the club mission statement and goals,
the responsibilities of the various club positions and elect the officers.
- Delegate club responsibilities to students and allow them to decide whether
to invest actual funds or begin with a mock portfolio. Ideally, each student should
select a stock, research it and make a presentation. Of course, select the club
portfolio from the student presentations.
- For new investment clubs, devote the first two or three meetings learning
and adopting the CSA and NAIC resource materials and strategies.
- Invite speakers from the investment community and media to club meetings
to present their perspective on a chosen topic. Schedule one or two club visits
per year to a company head office near you, a company annual general meeting,
a stock exchange or a financial analyst meeting.
- If possible, put the club and its portfolio online, perhaps on the school
web site, the CSA or NAIC sponsored club links.
- Encourage the students to make presentations to outside parties, say at another
school considering starting a club, to investment professionals and to the parents,
grandparents and family members.
- Discuss club strategy for when the school year ends. Generate awareness in
the school newspaper, school web site and community newspapers to recruit students
for the next school year. Send student members to speak to other classes and share
their club investment experiences.
An abundance of effort goes into the making of a successful school investment
club. All that work will eventually mould the children into young adults with
investment savvy – an accomplishment you will be very proud of as a parent,
grandparent, teacher and administrator.
Now here is the low-key pitch from me! I extend an invitation to each of you
to get involved in disseminating the benefits of school investment clubs. Take
initiative and make an effort to speak to the schools where children you know,
or those of your clients` attend.
Commit some of your precious time for the planning to get a club off the ground.
Offer to donate the materials to get one started. You will get many thanks from
the children that participate.
I've always said that this marathon is well worth our commitment. First, however,
many thanks from me.
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