Sixth-grade students Kilinahe "Kili" Uemura, Amber-Ashley Reodique and Krista Higashi are the first-place winners in the Elementary Division of the Fall 2011 Hawaii Stock Market Simulation.

This semester, 1,072 teams comprised of 2,738 students participated in the fall trading session from 41 schools and organizations across the state. The students from Ben Parker Elementary School beat 225 other teams competing in the division, finishing with a final portfolio value of $106,961.13.

Hawaii SMS is an interactive program that helps students learn how the U.S. market system works. The fall simulation ran from Sept. 26 through Dec. 2. Teams of two to four students invested a hypothetical $100,000 in stocks, bonds and mutual funds over this 10-week period.

By gaining an understanding of the securities markets, students learn about the importance of saving and investing to help provide a sound economic and financial base for themselves.

The program is administered by the Hawaii Council on Economic Education in partnership with the state Department of Commerce and Consumer Affairs, Office of the Securities Commissioner.

Wanda Schnur, a librarian at the school, introduced the sixth-graders to the market system using the analogy of a fishing boat owned by several families. In this scenario, each of the co-owners would share the expenses and profits to keep the boat operating.

At first the girls thought that the simulation was confusing, but it got easier as the semester progressed and they got the hang of what they were doing.

Schnur encouraged them to consider current events and the influence the economy might have on consumer-buying habits — especially items that were highly visible in their daily lives — when building their portfolios.

The students used charts available through the Hawaii SMS website to decide which stocks to buy. They also tried to figure out what products would be in demand.

"We surfed the Web and tried to get ideas about what would be popular as Christmas approached," Krista said. "We thought that Apple would be a good buy because of the iPhone and iPad."

Amber said they also bought local stocks like Bank of Hawaii or those with a local presence like Dole Food Co. since they would be more aware of these companies’ products.

This strategy had mixed results. Dole’s stock dropped 10.7 percent while Bank of Hawaii’s stock jumped 17.2 percent over the course of the 10-week simulation.

"My parents think (the simulation) is a good way to learn about the economy and that it is good practice," Kili added. "It made them happy that we did so well."

Schnur believes that understanding how money makes money empowers students and that introducing them to investment strategies at a young age helps prepare them to be responsible adults.

"Financial literacy not only covers economics and finance, but also current events, math, social studies and technology," Schnur said. "The students get to see the big picture — how everything affects everything else."

David Taba, who teaches economics at Roosevelt High School, agrees. He had three of the six top-ranked high school teams this semester.

But he gives all the credit for the stellar performances to his student teacher, Ryan Shimokawa, who is finishing his credential at the University of Hawaii.

"Ryan has a passion for teaching kids the real-life skills they will need to get ahead — financial literacy as well as more traditional kinds of literacy," Taba said of his protege. "Whatever school is lucky enough to hire him will get a great economics teacher."

Shimokawa’s interest in economics and finance comes, in part, from his brother, who is a financial planner.

Shimokawa said it’s important for students to learn to set goals and then strategize to reach those goals while mitigating risk at the same time.

He hopes that participating in programs like the Hawaii SMS will give these kids a head start in thinking about their own financial futures.

"We salute teachers like Schnur, Taba, Shimokawa and the many others who participate in this program year after year," says Toni Takeno, director of HCEE. "They are the ones working every day to make a positive impact on the lives of our young people. It is through their efforts that we teach students the tools they need to make wise, thoughtful financial decisions for themselves."

The council is a statewide partnership of business, labor and education. It is an independent, nonpartisan, nonprofit educational organization. The council’s mission is to promote and improve the teaching of economics in Hawaii’s schools and increase the economic and financial literacy.

Ellen Morrison is program manager for the Hawaii Council on Economic Education.