Nearly 2,000 Hawaii students received first-hand experience in the investment world this semester.

Richard Mumaw, a teacher at Highlands Intermediate School in Pearl City, had his students research investments, discuss and select their choices, and update their portfolio each week as part of the just-concluded fall Hawaii Stock Market Simulation program.

"The Hawaii Stock Market Simulation has been an excellent resource for the teaching of investing as well as the stock market to my class," Mumaw said. "This is an unbelievable tool because it gives the students real-time results in the actual market."

There were 774 teams composed of 1,990 students that participated in the fall trading session from 31 schools and organizations across Hawaii.

The Hawaii SMS is an interactive program that allows students to manage their own financial portfolio by buying and selling stocks, bonds and mutual funds using real-time or current prices depending on the investment type. The program helps students learn global and domestic economic concepts as well as the nuances of the U.S. market economy and how it 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.

Students from Hawaii schools in grades 3-12 are invited to participate each semester. Thousands of students and teachers spend many hours including class time, lunch time, after-school time, and even weekends learning about various economic indicators and investing concepts, researching industries, brushing up on current financial statements and business analysis, and applying their newly learned knowledge to their own portfolios.

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.

The Hawaii SMS mimics real-life decisions and helps facilitate daily class discussions.

"It also gives the students the actual experience of buying many different investment products," Mumaw said. "The apprehension of doing so later in life will not be there. It provides incredible motivation and interest because it is competitive with the real-time posting of team results. It also allows discussion of events that moved the market every day."

The Hawaii Stock Market Simulation has done wonders for many student participants with the acquired skills and experience students long-lasting and far-reaching for many students, HCEE said.

Over the course of 10 weeks, teams of two to four students invest a hypothetical $100,000 in stocks, bonds, and mutual funds. To thoughtfully make their investments, students follow world markets, read the business section of local and national newspapers, discuss current events in class, and research market trends. 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.

Asa Wakabayashi, a teacher at Pearl City High School, has been participating in the Hawaii Stock Market Simulation for several years and said "it is a fun game that the whole class gets involved in."

"It’s really simple and easy to start, even if you have no experience in finance or investing," Wakabayashi said. "The Hawaii Stock Market Simulation also helps with current events. Many companies’ stock prices move up and down with current events and market trends. Many students found out in business (that) many events are correlated."

HCEE encourages parents to get involved at home, too.

"This program also encourages teamwork and facilitates communication with fellow students and adults in a meaningful way," HCEE said. "It not only helps teach economic concepts but also helps with critical and strategic thinking. It can also be an icebreaker into discussing the subject of personal finances as well as current events with their children."

Throughout the simulation, for some teams daily, students track their portfolios. Teams also develop strategies for working together and making decisions on how to manage their portfolio.

Derek Monell, a teacher at Kealakehe High School in Kona, said the school has been using the simulation for a few years.

"It is part of the student’s portfolio project," he said. "Because the teams actively track and record their portfolios performance, the students become engaged and look forward to seeing how they stack up to the rest of the state. The team competition really helps expand students’ awareness of the world’s economy as they are trying to correlate world news and its impact on their portfolio, especially since they really want to win."

Rhiannon Grinevics, an 11th-grader at Roosevelt High School in Honolulu, said, "It was a really good experience and I learned a lot about how the stock market works and how current events affect the stock market."

Grinevics, along with her teammate Dong Yoon Kim, placed first in the Growth Division. "The experience allowed me to really see how the stock market worked day to day. When stocks reached a certain percentage that we had in mind, we knew it was time to sell," Dong said.

Teachers and students would regularly check the Hawaii SMS website and the business section of the Hono­lulu Star-Advertiser to see how they stacked up against other teams participating in the program.

"We certainly were pleasantly surprised when we found out we won," said Champ Smith, whose Highlands Intermediate School team was first overall in the Elementary Growth division. "This was our first experience with the stock market. It was new and exciting," said teammate Elijah Garcia.

Although students compete for prizes and bragging rights, there are also valuable lessons that the students learn. Duncan Anderson, a seventh-grader from Kohala Middle School in Kapaau on Hawaii island whose team placed second in the Elementary Division, said, "I learned to never give up and keep trying." His teammate Dayna Brooks added, "We were in 440th place, then the next week we were in 20th!"

For some, the Hawaii SMS simulates a realistic investing experience. David Taba, a teacher at Roosevelt High School, said, "This is information for life!"

Mumaw, the Highlands Intermediate teacher, echoed the sentiment. "I cannot express to you how strongly I feel about this. With this new generation being the first one to be less financially well off as their parents, it is essential that we give the students all the tools possible to be financially successful. I also believe young adults get into a cycle of debt before they understand how to be financially secure."

The spring 2015 SMS will begin Feb. 16. All teachers are invited to attend a three-day course to learn strategies to integrate the stock market into other disciplines. The strategies include how to differentiate instruction as well as utilize multiple strategies to create meaningful stock market lessons and units. This workshop gives teachers the opportunity for professional development credit with the Department of Education. The workshops help teachers understand and become more comfortable with leading their students through the simulation. Neighbor island stipends also may be available. Visit www.hcee.org or call 447-9891 for information.

The HCEE, a Hawaii nonprofit 501(c)3 organization with stakeholders in business, labor and education, works 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.

Melissa Michaels is senior program and outreach coordinator and Kevin Matsuda is executive director for the Hawaii Council on Economic Education.