Grow your money

Investment Club and Davey’s stock simulation teach students to manage their money

As president of Investment Club, junior Johnny Chang urges students to join because it is one of the best ways to learn about making good decisions in the stock market with a hands-on approach.

“We have the ability to put our real money into an investment,” Chang said. “Our club’s mission is to teach our members about personal finance, what investing can do and how to invest with different strategies.”

Many students think the stock market is too confusing to understand. However, Investment Club adviser Kirk Davis believes the average student could benefit and learn from investing in stocks.

“It’s not the most exciting topic sometimes, but I think it’s possible if someone is willing to learn a little bit of accounting and has a fundamental interest in investments,” Davis said.

Investing in stocks may even have advantages over working a regular job.

“When you get a job, you do trade physical labor and time for money. By investing, you use your money to do the work for you,” Chang said. “In short, you make your money grow itself.”

Chang made his first investment two years ago when he realized that he wanted to put his money to good use. He started by investing $500 and has now significantly increased his principal. Chang suggests investing in quality companies with sound financials and competitive advantages such as superior advertising techniques. However, trading stocks also has its risks.

“No matter much analysis you do, it’s not going to completely remove the possibility of losing money,” Chang said.

Students can also choose to wait until they take economics during their senior year. Teacher Mike
Davey does a personal finance unit where he teaches students about student savings, mortgages, loans and debt. He believes an important part of personal finance is investing in order to save for a house, retirement and children.

“Over the course of the last three years or even 100 years, the best way to invest your money is in the stock market,” Davey says.

Davey lectures on what the stock market is, what stocks are, how to pick stocks and what to look for when picking stocks. To personalize the learning process, Davey has every student participate in a stock market simulation.

“They track stocks and turn in reports on how their stocks are doing and why they chose those stocks,” Davey said. “It’s a long-term process, but I think they’re starting to get the idea of it.”

In the end, Chang encourages everyone to begin growing their money instead of earning less than 1 percent interest from leaving money in a bank account. The sooner one starts, the more he or she can make from accumulating returns, a concept known as compounding.

“It’s absolutely never too late to start investing,” Chang said. “But compounding waits for no one.”