Sunday, November 4, 2007

How To Start A Student Investment Club

How To Start A Student Investment Club
Investment clubs are a terrific way for kids to learn about
investments even at a young age. You can start a student
investment club for your own child or for your students if
you are a teacher. The student investment club can help
kids learn about money and teach them invaluable lessons
about making decisions.

Starting a student investment club begins with the desire
to invest. An adult should start and run the club and
provide structure and guidance along the way. Properly
used, however, the student investment club will be a good
learning experience for everyone.

1. Begin with a simple goal – to provide kids with
limited ability to search and select stocks to invest.
Ensure that younger kids have their parent’s
permission to participate. Come up with weekly or monthly
goals for investing.

2. Write rules and stick to them. Investment clubs need
rules and regulations and the student investment club is no
exception. This helps to establish order and ensure that
things are handled properly. Write the rules in plain
language that can be easily understood by the age group.

3. Limit the investments. Children have limited funds so
there should be low limits on the participation
requirements as well as limits to the amount the child can
invest. Get the buy-in of the parents before you begin.
Always consider the amount of money available to students
before you choose investments.

4. Make investments fun. The idea of investments can seem
somewhat a dreary subject. Spice it up by allowing kids to
invest in companies that they know or have heard about.
Think about popular toy or video game companies, food or
restaurant companies or clothing companies. Investing in a
stodgy company they never heard of and don’t know the
nature of business will make the club boring and kids will
lose interest quickly.

5. Encourage kids to use their own money. When appropriate
the students will learn better when they use their own
money. Whether it’s from their allowance or from a
part-time job, using their own money will force kids to be
more interested in the investments.

6. Invite guest speakers. Whenever possible try to add
interest by inviting guest speakers to meetings with the
students. Find members of the local community to speak
such as investment bankers, finance counselors or
accountants.

7. Divide students into smaller groups. If you have a
large group of students, it may be wise to have them form
smaller groups. Allow them to form a
“corporation” for investing and even let them
name their company. Have them choose a president and then
let them vote on investment choices.

8. Track investment performance. Teach students to use
charts or graphs to track their investments and keep
abreast with market trends in the newspaper or on the
internet. Determine a specific day in a week to review
investments with the students.


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Investment clubs have been growing tremendously in recent
years, including student investment clubs. Young children
are being encouraged to learn about investing at home and
in school. Learn more about joining or starting an
investment club at
http://www.aboutinvestmentclub.com/art-stu

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