When underprivileged girls are introduced to financial literacy and basic investing principles, the outcome includes some respectable investment returns, but the real value is found in the foundation of a savvier saver, spender and investor.
These are among the key lessons from the partnership between ING U.S. and Girls Inc., which is celebrating the results of the first ING-Girls Inc. Investment Challenge.
“We are focused on inspiring girls to be strong, smart and bold, but we never had anything related to financial literacy,” said Judy Vredenburgh, president and chief executive of Girls Inc., which provides education and guidance to young girls.
The partnership brings together teams of high school classmates to manage virtual investment portfolios.
“The goal is to give girls the tools to develop sound investing principles,” said Rhonda Mims, president of the ING Foundation, which is providing financial support and coordinating ING mentors for the competition.
The program began in 2009 with student investment teams from high schools in Denver, Los Angeles, New York and Alameda County, Calif.
Since then, it has been expanded to 10 groups, with 30 groups expected next year.
The program is run similarly to an investment club but begins with a gradual immersion in the basics of investing. The teams initially are limited to investing in mutual funds but eventually are allowed to expand their $50,000 virtual portfolios to individual securities.
At the end of the three-year program, the winning team's portfolio is converted into real money by ING, which gives two-thirds of the value to the team members in the form of scholarships and puts the rest back into the program.
Of the four teams in the inaugural competition, the New York City Divas generated a three-year total return of 54.6%, the Denver Empowered Investors gained 42.6%, the Los Angeles King Drew Profiteers gained 32.6%, and the Alameda County ING Money Makers gained 31%.
