Australian students discover the thrill of investing

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The ASX Schools Sharemarket Game is back. Students across Australia and New Zealand can compete in a realistic market, make strategic decisions and win prizes while learning essential investment skills

INVESTING IN the stock market might seem like an adults-only activity, replete with financial jargon and high stakes. However, the ASX Schools Sharemarket Game breaks down these barriers, bringing the excitement of the stock market to classrooms across Australia and New Zealand. Since its inception in 1977, the ASX Schools Sharemarket Game has transformed the way financial literacy is taught in schools. Over four million students have participated in the game so far, and it’s recognised by state education departments across Australia as an essential educational tool. The hands-on approach allows students to learn by doing; they can pick stocks and compete against their classmates for the chance to win real cash prizes. The ASX Schools Sharemarket Game is gearing up to launch its second 2024 game and it is promising to be another exciting and fun experience for participating students and teachers.

ASX stands for Australian Securities Exchange. This was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange in July 2006 and is one of the world’s top 10 listed exchange groups measured by market capitalisation. ASX is home to some of the leading resources, finance and technology companies internationally. As the first major financial market to open each day, ASX is a world leader in raising capital, a top 10 global securities exchange by size, and the largest interest rate derivatives market in Asia.

“We hope to make the learning of financial literacy fun and realistic by bringing the world of investing to life in the classroom”

Theresa Lintvelt, ASX

Students can participate individually or form a group with their classmates. Each participating syndicate starts with a virtual cash amount of $50,000 and access to 300 ASX-listed companies, 60 exchange-traded funds (ETFs) and five listed investment companies (LICs). Over the course of 10 weeks, students make strategic trading decisions based on real-time market conditions, complete with live prices and brokerage fees. They can place orders to buy or sell shares any time the market is open, which gives them a realistic experience of how the stock market operates.

According to Theresa Lintvelt, head of marketing and brand at ASX, the game is designed as a safe platform for students to learn about investing, thus enhancing their financial literacy and future financial wellbeing. “We hope to make the learning of financial literacy fun and realistic by bringing the world of investing to life into the classroom,” Lintvelt tells The Educator. “Students who have participated in the ASX Schools Sharemarket Game develop life, finance, maths, business and economic skills and benefit from the safe learning space. We have heard from teachers that students return to participate in the game each year to build on the skills they learn, and to test new strategies.”

One of the standout features of the ASX Schools Sharemarket Game is its ability to provide a realistic market experience. The game uses live data from the ASX, meaning that what students see in their game dashboard mirrors the actual conditions of the stock market. Orders are matched against real orders in the live market, and the selection of companies includes 300 ASX-listed entities, encompassing various sectors, small caps, ETFs and LICs. This realism is further enhanced by the inclusion of brokerage costs, which reflect what online brokers would typically charge. These details ensure that students get a true-to-life understanding of trading dynamics, including the impact of fees on their investment returns. The game also integrates essential financial concepts such as risk management and the importance of diversification. A rule of the game is that investments are capped at no more than 25% per company, teaching students to spread their risk across different investments. This rule is designed to mimic real-world investment strategies and highlights the importance of diversification in managing investment risk. Ultimately, the aim is to foster students’ long-term financial skills and equip them with the knowledge they will need to make informed decisions in their adult lives.

For the students of Dale Stevenson, teacher of HSIE economics, business studies, legal studies and geography at Byron Bay High School, the ASX Sharemarket Game has already proven its value. Stevenson notes that he’s already been approached by several ex-students who learned to trade shares through the game and have reaped the benefits. “One former student approached me in the supermarket and told me that after school, he invested in a profitable share portfolio that assisted him in building the deposit that he used to purchase his first property in his mid-20s,” Stevenson recalls. “Another former student, who studied medicine at university, told me that he invested in an IPO of a new pharmaceutical company and that his shares yielded an immediate profit of 25% on their first day of trading.”

Daniel Willcox, mathematics and science teacher at Parklands High School in Tasmania, says that before the game was introduced, there was relatively little by way of education around financial markets and investment. The game has since allowed students to consider different ways of looking at their finances, as well as how research on current events can help them predict which shares to buy. When participating in the game, teachers have access to a range of supporting resources that allow students to test their learning. ASX’s Lintvelt notes that students are encouraged to keep a journal, as tracking their investments is one of the most important things they can do. They are asked to make note of why they have chosen to buy particular companies, why they sold, and whether or not they have kept to their original plan.

Willcox says the conversations sparked by the game have been informative and engaging, encouraging students to discuss subjects they almost certainly would not have talked about before. “Money is a large motivation for a significant portion of our students, so talking in this language they understand and engage with was a memorable point,” he says.

teen studying the stockmarket on a laptop

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Published 22 Jul 2024

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“One former student approached me and told me that after school, he invested in a profitable share portfolio that assisted him in building the deposit that he used to purchase his first property”

Dale Stevenson, Byron Bay High School

A realistic investing experience

A teacher’s perspective

Stevenson highlights that for many students, the ASX Schools Sharemarket Game is the first time they encounter the concept of shares. The game also provides them with a more practical understanding of the investment experience, from the mechanics of buying and selling to external market factors causing price fluctuations. He notes that one of the most significant moments in the latest game occurred two weeks in, when some of the shares saw major falls in value. “At this memorable moment a number of students were confronted with the decision about whether to hold these shares and have faith in their initial share selection or sell these shares at a significant loss,” Stevenson says. “The vast majority of students chose to hold these shares, and this decision was vindicated as the game progressed.”

The ASX Schools Sharemarket Game is more than just an educational tool; it’s a gateway to financial literacy and a practical understanding of the stock market for students across Australia and New Zealand. For teachers, it provides an engaging way to bring the world of investing into the classroom, making financial education accessible and enjoyable. Whether you’re an educator or a student, the ASX Schools Sharemarket Game is an invaluable resource for fostering a deeper understanding of finance and investment. To find out more and participate in the upcoming ASX Schools Sharemarket Game 2, click here.

schools

807

teachers

1,185

syndicates

23,363

students

33,784

Game 2, 2023: Participant numbers

Why schools participate

11%

37%

61%

63%

29%

18%

to encourage students to win prizes

to provide learning opportunities for advanced students

general student development

to supplement financial education with practical experience

to build class rapport

to cover curriculum content