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TheStreet Open House

Stock Market Game Week in Review

Stock quotes in this article: F, GM

While teaching about investing and our capital markets is one component of the Stock Market Game, another is teaching students how to accumulate money to invest with -- otherwise known as saving. One of the best ways to save is to put your money in an interest-bearing account at an FDIC-insured bank. The rule of 72 tells us that if you divide the number 72 by your interest rate you'll get the number of years it will take you to double your money. For example, if you are earning 4 percent interest in a bank account, you divide 72 by 4 and you get 18. Therefore at 4 percent interest, your money will double in 18 years. If you get eight percent interest, it would double in nine years, and so on. In the Teacher Support Center, there's an excellent lesson on the rule of 72 and compound interest titled "How Does Money Grows Over Time." The lesson clearly demonstrates the importance of saving money early in life and letting compound interest work its magic.

Also, as many Stock Market Game sessions near conclusion, it's a good time to get your students thinking about what they've learned. There's another lesson in the Teacher Support Center to help with this called "How Successful Was My Investment Strategy?" The lesson challenges students to create a five minute presentation outlining what worked for them, what didn't, and what they've learned about investing.

To access the lessons, log in to the Teacher Support Center with your advisor ID and password. Next click on "Lesson Sequence," then choose "Display a Complete Outline of All Lessons." Both lessons are available in the sequence.

This article was written by a staff member of The Stock Market Game.
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