ETF, free float or dividend: The trading floor is teeming with technical terms that often seem so specific and intimidating to laypeople that they shut themselves off from the financial world altogether. A certain degree of financial maturity is important at a time when inflation rates are in excess of ten percent. No matter how old, it helps to move independently not only on the stock exchange, but also in everyday life. With a little practice, young people, many of whom only know the stock market from the television news, can find a way into it. The savings banks have been organizing the virtual financial game “Börse business game” for 40 years now. It will start again shortly and pupils, trainees and students can invest in securities under real conditions but without danger.
Erika Hehlen from the Kreissparkasse (back left) was happy in 2017 with the winners at the time. She has been in charge of the project for years.
(Photo: oh)
According to the Kreissparkasse München, Starnberg, Ebersberg, around 90,000 young people from all over Germany and Europe can immerse themselves in the world of the stock exchange as “temporary traders”. The game is available in different versions for pupils, trainees and students, with slightly different conditions depending on the group. However, the basic rule is the same for everyone: over a period of 17 weeks, the young people invest a virtual starting capital of 50,000 euros in various securities on the Stuttgart Stock Exchange. After opening a securities account, the aim is to increase the value of this securities account over a period of 17 weeks by buying and selling securities as skilfully as possible. The special thing about it: The prices at which you invest your fictitious capital are real.
In this way, the young people can try out different investment strategies without risk, but under real conditions, and take their first steps into the world of finance. In the end, it is not only the total value of the portfolio that decides the winner, but also the amount of income from sustainable investments. With this special focus on ‘sustainability’, the savings banks would like to draw attention to the growing importance of environmentally friendly investments. “Although this is often not necessary for our participants, because the younger generation already has a very clear awareness of climate and environmental protection,” says Erika Hehlen from the district savings bank, “but through the game, many young people simply learn how important it is is not just personal commitment to the climate, but also sustainable investing.”
1476 students took part last year
The Kreissparkasse München Starnberg Ebersberg has been on board the “Börse Business Simulation Game” from the very beginning. Last year there were 1,476 pupils and 150 students from the three districts who competed for the various prizes – from participation in galas to events on financial topics and prize money, there was a lot to be won. Erika Hehlen, who has been organizing and supervising the game in the districts since 2013, is pleased that many players have already registered since the start of the current round. “Every year we are amazed at how quickly the young people get used to the game and its rules,” says Hehlen. “This is the best proof that you don’t have to know the world of finance to take your first steps – it’s about having the courage to take those first steps in the first place.”
She emphasizes that the aim of the business game is not to turn all participants into future business professionals, but to enable them to have a risk-free first encounter with the topic. “Where else is this kind of education supposed to come from if not from the banks and the financial world?” The business game is not only intended to help young people directly, but also the participating schools: “One hour of economics lessons a week is simply not enough for the students to find a personal approach to the topic – we want to give the schools something to do with the business game stock market that can arouse students’ enthusiasm.”
Helmut Schleweis, President of the German Savings Banks and Giro Association, confirms that the stock market simulation game is not just about introducing people to the world of finance and its techniques, but also about learning to recognize connections. In this way, questions such as the direct interaction between political and economic events can be explored.
Registration for the 40th anniversary round of the business game is possible until Wednesday, November 16th. Depending on the group, interested parties register either directly online on the website of Sparkasse München, Starnberg, Ebersberg or through their teacher.