Empowering Financial Literacy: The ASX Sharemarket Game

June 10, 2024

The ASX Sharemarket Game is a newly launched co-curricular group aimed at our Years 10 – 12 students. Its goal is to foster financial literacy and education. This innovative program teaches the basics of investing, how the stock market operates, and the significance of making informed financial decisions.

Through managing a virtual investment portfolio, students gain hands-on experience in understanding risk management, portfolio diversification, and the impact of economic factors on investments. Students received a virtual $50,000, which they invested over a 10-week period. They could choose from over 300 companies listed on the ASX. The prices they bought and sold for were the same as those on the live market, so this is as close to real-life share trading as you can get.

Mathematics teacher Karen Thompson coordinated the group, inspired by her own wish for financial education during her youth. “I wish I had learned about the share market and how to profit from it when I was younger. I have a friend who has made a living doing exactly that. It’s a bit late for me, but not for my students.”

We had the pleasure of interviewing Karen about the program.

What skills do students typically develop through participating in the ASX Sharemarket Group?

The ASX Sharemarket Game helps students develop a range of valuable skills. These include critical thinking and analytical abilities as they research and analyse different companies and investment opportunities. Students also learn decision-making and risk management by making investment choices and managing their portfolios. The group setting fosters teamwork and communication skills as students collaborate with peers and discuss investment strategies.

Can you describe a typical meeting or activity that the ASX Sharemarket Group participates in?

A typical meeting or activity involves discussions about current market trends, presentations on investment strategies or analysis techniques, and updates on the performance of the students’ virtual investment portfolios.

What do you hope students will take away from their experience in this group?

The hope is that students will gain several key lessons and experiences from their participation. They should develop a solid understanding of how the stock market works and how to make informed investment decisions. Additionally, the aim is for students to gain confidence in managing their finances and navigating the world of investing. Important values such as patience, discipline, and a long-term perspective when it comes to investing are nurtured. It is hoped that even with just a taste, students leave the group feeling empowered and equipped to take control of their financial futures.

Year 10 student Naomi shares her experience

“I joined this co-curricular to gain a better understanding of share marketing, as I believed it would be a useful life skill, particularly when I’m paying my own bills! My parents have tried many times to explain shares and the ASX to me, but this co-curricular allowed me to engage and gain firsthand experience in the different aspects of share marketing. Now, I look forward to checking my portfolio every morning and studying articles from Morningstar with Dad.

“As well as gaining a lot of resilience and optimism (largely thanks to Telstra), participation in the ASX Sharemarket group has helped me develop an understanding of current affairs, inflation, factors that affect share price, and multiple life skills. It’s helped me learn how to maximise gains and cut my losses (although I still refuse to sell my shares in Bank of Queensland despite losing a significant amount of money), learn how dividends and other factors affect share price, choose undervalued shares, diversify my portfolio, and look to a range of sources to make informed decisions. Most importantly, I’ve learned skills that will help me manage money in the future.”

Conclusion

The ASX Sharemarket Game is more than just an educational initiative; it’s a gateway to lifelong financial literacy. By equipping students with the knowledge and skills to navigate the complexities of the stock market and make informed financial decisions, we are empowering them to take control of their financial futures.

Featured, Financial Literacy, Learning for Life

Author: Santa Maria College
Santa Maria College is a vibrant girls school with a growing local presence and reputation. Our Mission is to educate young Mercy women who act with courage and compassion to enrich our world. Santa Maria College is located in Attadale in Western Australia, 16 km from the Perth CBD. We offer a Catholic education for girls in Years 5 – 12 and have 1300 students, including 152 boarders.