Eighth grader victoria Bills is discussing potential investments with her classmates. She is worried that Mattel's toy recall will have an impact on the company's stock price. That may sound like an unlikely concern for a 13-year-old. But then, Victoria's school, Ariel Community Academy, is hardly typical.
The Chicago school's 420 students learn about finance and economics. They also get a chance to make money. The public school works with two investment firms, Ariel Capital Management and Nuveen Investments. Each first-grade class is given $20,000. With that money, Ariel Capital and Nuveen buy stocks in companies. A stock is a share in the ownership of a company.
Starting in sixth grade, students can join a junior board that manages the investments. After graduation, the profits that have added up in the eighth-grade account are divided. The incoming first-grade class gets $20,000 from the account. The rest of the money is split equally: Half goes to a school-improvement fund; half goes to the students. They can choose between putting their money in a college-savings program or taking cash.
This year, Victoria urged her class to buy Apple stock--just before it went up with the release of the iPhone. "We caught Apple at the right time," she says. The kids bought Google stock as it was hitting $400 per share. It is now over $500. "It was worth paying for," says Myles Gage, 13. He hopes to be an investment banker.
The day at Ariel Community Academy starts earlier and ends later than at most schools. Ariel Capital picks up much of the extra cost for staff and security. The company's investment seems to be paying off. Last year, 88% of Ariel's students met or exceeded Illinois math standards.