Classroom discussions, for students ages 12-18, cover various asset classes, risk versus reward and the power of compounding.
Often, these areas are left out of traditional curriculums because they are considered nonacademic. However, these ideas overlap with the same concepts taught in math and biology, among other subjects.
“Everybody should know about interest rates, inflation, share investment portfolios — nobody teaches this,” says Bernhard Gademann, president of the elite Swiss boarding school Institut auf dem Rosenberg.
At this Swiss boarding school students manage hypothetical $1 million portfolios and present their investment picks to a mock board.
Research shows taking a financial education class in high school pays off.
A strong and thorough understanding of compounding interest alone should deter most from overspending on credit cards.
What have you taught your kids? Do you understand the compounding effect of credit card interest? How about compounding interest in a Money Market or CD, can you explain how that works?