Kids play the market
JPMorgan Chase & Co. is hooking up with the SIFMA Foundation to try to educate students about finance and investing.
The bank plans to assist the affiliate of the Securities Industry and Financial Markets Association in running The Stock Market Game — the foundation’s fantasy investment game that has been played by more than 12 million students since it was introduced in 1977. The game simulates a genuine investment experience by giving classroom par- ticipants a hypothetical $100,000 in stocks, bonds and mutual funds to manage.
The game has paid dividends, too. This year, Learning Point Associates, a private educational research group, conducted a nationwide survey and found that students who participated in the program scored considerably higher in standardized math exams than their peers who did not play the game.
JPMorgan employees will visit some public schools in New York, Illinois, Indiana and California that are enrolled in the program. The workers will also host trading floor visits for the students. In addition, the bank will provide judges for the InvestWrite competition, another one of the foundation’s educational programs.
“The SIFMA Foundation regularly partners with industry firms to extend the impact and learning points of The Stock Market Game program for students and teachers,” said Melanie Mortimer, executive director of the foundation. “We believe the best solutions in education are achieved through strategic partnerships that tap the expertise of all involved.”
The SIFMA Foundation tries to make the game as realistic as possible. After the 2008 financial crisis, the foundation introduced a universe of investment-grade corporate, municipal and government bonds to the game.
“We believe it did enable our teachers to help their students understand the crisis more fully,” Ms. Mortimer said.
Schools pay an average of $5 per student to participate in The Stock Market Game, although grants from local businesses sometimes sponsor the program and pay this fee.
Blythe Masters, head of global commodities at JPMorgan, said the partnership is going well.
“It has been terrific to see so many employees get involved in helping students better understand the financial markets,” Ms. Masters said. “The time we are spending with them is extremely rewarding, and we’re proud to be partnering with SIFMA on such a valuable initiative.
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