Feb

5

 As most of you know, we've home schooled our kids for years. This past year, my three younger kids decided to go to regular school.

My son Hunter takes a business and finance class and the teacher has asked me to come and teach a class of 250 kids (in the auditorium) about investing and risk management. This will happen on Feb. 19th.

He'd like me to give a power point presentation for 45 minutes and have 15 minutes of Q&A.

Believe it or not, I've never taught high school kids before in a situation like this or at this level.

What would you all suggest to me as good subjects that would be interesting and semi-entertaining (or at least attention getting) to keep a group of 250 kids engaged for 45 minutes and cause them to want to answer questions for 15 minutes.

Any thoughts would be appreciated.

Thank you,

Scott

Rocky Humbert writes: 

Perhaps start with a quote from Albert Einstein, "Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't pays it." The power of compounding is what's behind everything. If the kids come away with the understanding that a penny saved is much more than a penny earned, you will have accomplished a lot. It's vastly more important than stocks or bonds or risk. And the power of compounding is not just about money. It's about studying and investing in oneself. That's a life lesson.

Russ Sears writes:

Here is an idea: Light a match, set off a small fire-cracker, then blow out the match…. Then explain how risk management is about never letting fires get to big that you can't extinguish them. That an occasional small explosion can keep life fun. And managing explosive potential is key to never letting yourself blow-up.

Then show them a live trading screen, tell them billions of dollars are made and lost every day.

Ask "Who wants to be a millionaire?". Tell them how they can become one by monthly investment and compounding interest at few rates until X years. Use the same amount invested in stocks, S&P compounded.

Finally, ask if they know how much they will spend on 4 years of college. Use that lump sum how much it really cost to pay it off after interest over 15-20 years. Show how that much actually invested in stocks could pay over a 20 year period.

Tie it all back together with they need to manage debt, savings, emergency funds, risk management.


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3 Comments so far

  1. Tom David Lewis on February 5, 2015 6:38 pm

    There are several informative videos of Warren Buffett interacting with college students. I realize his students are a bit older but it will provide you with some helpful information.

  2. Andre Wallin on February 5, 2015 7:05 pm

    The challenge of investing is the emotional challenge, positive drift, leverage kills, and human fallability. Being in touch with your emotions is the most important thing in life. It answers everything.

  3. Kritika on February 6, 2015 11:06 am

    I agree with rocky humbert - compounding should be a good start. You may also emphasise the importance of keeping debt at bay and saving before one spends. Mohnish pabrai, a value investor, has made an interesting presentation on the power of compounding. You may refer that to get ideas. In my view, that should give a good foundation to kids.

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