The team of seventh-grade students Austin Parel and Naphtalee Ubarre captured first place and the duo of Charlotte Taylor and Coco-Giordano Romano took second in the Elementary Division of the spring Hawaii Stock Market Simulation.
The winning students from Paauilo School beat out 146 other teams competing in the Elementary Division and finished with a final portfolio value of $110,010.18. They started with a hypothetical $100,000 portfolio. The runners-up, seventh-graders from the same school, ended with $108,464.58.
Hawaii SMS is an interactive program that helps students learn how the U.S. market system operates by encouraging the students to think about setting goals and saving the money they need to reach those goals. It also introduces them to the discipline required to become successful investors. Teams of two to four students invest in stocks, bonds and mutual funds in their hypothetical portfolios during the 10-week program, which this semester ran from Feb. 13 through April 20.
There were 680 teams comprising 1,887 students who participated from 30 schools and organizations across Hawaii. The program is administered by the Hawaii Council on Economic Education working in partnership with the Department of Commerce and Consumer Affairs, Office of the Securities Commissioner.
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 their own future.
For the students from Paauilo School, it was the first time that they had been introduced to the stock market.
"We did a lot of research on the computer and our personal devices," Austin said. "We would look at which stocks would go up and down. And I looked up the 10 best stocks for 2012."
Coco added, "We chose the things that we liked. We researched stocks using Yahoo Finance and took advice from other individuals."
The students also used charts available through the Hawaii SMS website to decide which stocks to purchase. They knew what they liked personally and were willing to invest in it.
"We were very interested in the Buffalo Wild Wings stock," Charlotte said. "We love eating Buffalo Wild Wings."
These tactics worked well for Austin and Naphtalee, who saw their portfolio increase 10.01 percent, and for Charlotte and Coco, who saw their portfolio increase 8.46 percent over the 10-week program. Such an increase is good for any portfolio, but these students took particular pride in their performance.
"Where we come from, we see dogs running around, lots of children running around," Austin said. "Our home is old, and we do not have very many nice things. This is old sugar cane country. I live by an old sugar cane plantation that closed down. I never knew about stocks before this competition, so it has been good to know that even a kid from the country can win such a big competition."
Such a big win is a cause for celebration, to be sure. But it wasn’t all smooth sailing for this team.
"In the beginning we lost so much money," Naphtalee said. "After a month or so we came all the way back up to first place, and we held that spot all the way to the end. My dad was so happy that I won that he had a party for me last night."
Jeanne Hosaka, a teacher from Waiakea High School in Hilo, had her students participate in the program as part of their finance class.
"This is my second year doing the Hawaii SMS with my students," Hosaka said. "My students enjoyed checking to see where they ranked in the competition. They especially liked seeing that out of our class, I was in last place. It was fun having a friendly competition (by competing individually against the students), and they got to experience trading on the stock market."
Having students participate in an activity that teaches them about not only the importance of saving, but of wisely handing their money is vital in today’s economy. According to a 2011 survey by the Council on Economic Education, fewer than half of the states require high school students to complete an economics class prior to graduation. The states that do require such a course can show that they have a higher percentage of students who are more likely to save money and less likely to max out credit cards or make late payments.
Radford High School teacher William Sankey’s 10th-grade U.S. history students participated in the program and were able to find value in financial lessons.
"Each student (and adult) makes economic decisions, and financial literacy is something that students will take with them throughout their lives," he said. "I hope this leads them to greater success and realization of their lifetime goals."
Hosaka said being financially secure "doesn’t just happen."
"You need to have a goal and then make a plan to get there," Hosaka said. "In high school, students have time on their side, so it’s the perfect time for them to understand how saving and investing now can help them reach their financial goals faster and easier. The Hawaii SMS gave the students the opportunity to trade on the stock market and see how easy it is and how much their money can grow."
And her students agree.
"My time with Hawaii SMS has made me feel more prepared for any future investments that I may have," said Donovan Palacol, whose team placed first in the Aggressive Growth division. Teammate Xiao Qing Zheng added, "We were very fortunate in winning this competition and gaining this wonderful learning experience. Overall, it was a fun and educational experience for my future."
Donovan and Xiao Qing spent many hours researching big companies with innovative product ideas and were excited to do so well.
"One of the most exciting things that occurred during this contest was when I came in to my advisory class and Mrs. Hosaka looked at me with the utmost excitement and told me that we took first place," Donovan said.
"It’s really great seeing young students enjoy learning about personal finance and demonstrating their understanding of the stock market," said Toni Takeno, executive director of HCEE. "They’re utilizing the concepts they learn from their teachers and setting the framework for their own healthy financial futures. Hawaii is lucky to have teachers who care about teaching economics and finance."
HCEE is a statewide partnership of business, labor and education. It is an independent, nonpartisan, nonprofit, 501(c)(3) educational organization. HCEE’s mission is to promote and improve the teaching of economics in Hawaii’s public and private schools and increase the economic and financial literacy of Hawaii’s students and residents.
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Toni Takeno is executive director of the Hawaii Council on Economic Education.
