THE URGENT NEED OF FINANCIAL EDUCATION IN SCHOOLS
The importance of financial education in Schools is being felt all over the world especially after the debt crisis that has affected practically all major developed countries including the US, UK, Germany, France Italy. Spain , Portugal and countries on verge of default like Iceland first and now Greece and many more to follow in the months to come.
The US government is spending more money that it receives in the form of taxes . The American people follow their government which encourages them to spend whether it is with their hard earned money which they have saved or on credit (using credit cards). They do not care. The government feels spending creates demand for products and promotes growth in the economy. So what does the US government do when they are heavily in debt (14.3 Trillion ) – they print more money.
So what does an ordinary citizen do when he in the same plight of his government. He obviously cannot print the money he needs.
SUICIDE - is one option – Yes Financial Suicide is what is happening around the world.
People in India have the savings habit. Which makes them much wiser than their counterparts in the west. Our government encourages savings by giving tax benefits in savings instruments. But is it enough? It is not enough to know how to save money – I think it is imperative to know how to invest wisely. It is imperative to know the risks associated in investments in different asset classes like Gold, Property, Mutual funds, shares, fixed deposits etc. Financial knowledge is the need of the hour – and where should we begin? Yes, right in school from Kindergarten ,5 yr olds to teens in the XII class.
----Mahendran Anandham
The US government is spending more money that it receives in the form of taxes . The American people follow their government which encourages them to spend whether it is with their hard earned money which they have saved or on credit (using credit cards). They do not care. The government feels spending creates demand for products and promotes growth in the economy. So what does the US government do when they are heavily in debt (14.3 Trillion ) – they print more money.
So what does an ordinary citizen do when he in the same plight of his government. He obviously cannot print the money he needs.
SUICIDE - is one option – Yes Financial Suicide is what is happening around the world.
People in India have the savings habit. Which makes them much wiser than their counterparts in the west. Our government encourages savings by giving tax benefits in savings instruments. But is it enough? It is not enough to know how to save money – I think it is imperative to know how to invest wisely. It is imperative to know the risks associated in investments in different asset classes like Gold, Property, Mutual funds, shares, fixed deposits etc. Financial knowledge is the need of the hour – and where should we begin? Yes, right in school from Kindergarten ,5 yr olds to teens in the XII class.
----Mahendran Anandham
The education which does not help the common mass of people to equip themselves for the struggle for life, which does not bring out strength of character, a spirit of philanthropy and the courage of a lion – is it worth the name?
— Swami Vivekananda
There is no end to education. It is not that you read a book, pass an examination, and finish with education. The whole of life, from the moment you are born to the moment you die, is a process of learning.
--- Jiddu Krishnamurti
— Swami Vivekananda
There is no end to education. It is not that you read a book, pass an examination, and finish with education. The whole of life, from the moment you are born to the moment you die, is a process of learning.
--- Jiddu Krishnamurti
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Martin Lewis, financial education speech to MPs in UK - Jan 2011Martin Lewis appeals to about 100 MPs (Members of Parliament ) at a meeting to make 'Financial education in schools compulsory ' by an act of Parliament.. He requested all the MPs present to go back to their constituencies and speak to the schools in their respective towns to introduce Financial education. The Chutti Crorepati Club was started at P.S.Chidambara Nadar School, Virudhunagar, Tamilnadu, India , in February 2011 when even an advanced nation like the United Kingdom was thinking about it. Besides this club the school has introduced a period a week for financial education which forms part of it's curriculum.
Martin Lewis's effort has borne fruit. Financial Education has been made compulsory in all schools in the UK from the academic year 2014, by an act of Parliament.- July 2013 |
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MY MENTOR SCHOOL - ARIEL COMMUNITY ACADEMY
In March 2008 I saw an article in the internet about a school in Chicago , USA .called the ' Ariel Community Academy ' that introduced financial education. I was so impressed by the article that I went and contacted the Board members of the local schools to start financial education on similar lines. I got a negative response. The Board changes every two years and I met the successive boards with no success. The school in Chicago was started by John Rogers Jr. CEO of Ariel Capital Management. in 1996 for students belonging to the lower strata economically. I shall quote from the article " The Ariel school's success can't be fully judged until its first graduates, now juniors in high school, make their own mark. But high math test scores give it a blue chip reputation for its students in a mostly black, high-poverty area. " Four years have passed and we have proof that the students in Ariel have excelled compared to their peers in affluent and elite schools and are above average in their state and in their country. I got the idea to start Chutti Crorepati Club from what John Rogers Jr. started in Ariel Community Academy. John was a multi-millionaire so he could afford to give $20,000 dollars to each class to invest in stocks and mutual funds. Till 6th grade John's Ariel Capital manages the fund and then hands it over to the 7th and 8th graders. The profits were shared by the students. It was only in February 2011 that a Board member of P.S.C School, the local girls school agreed to my proposal. I decided to include investments in Fixed deposits in Banks, investments in Gold & Silver, Investments in Property, and Insurance along with Mutual Funds and stocks. I had no money to fund them, so I made each student contribute Rs.20,000 in virtual money (school strength 2000 ) and landed up with RS. 4 crores. I gave each investment club Rs.1 crore and had a Fund management team consisting of students from grade III to grade XII.The students in grade XI who are in the executive board decide how and where to invest. The present elected members are third in line to handle the Fund. The past Eleventh hand it over to the present Eleventh and it goes on for ever. So as the years pass students will be able to assess the risks and returns of different asset classes over time. Now the fourth batch of grade XI students have taken management of the Funds. - July 2013.
Now the 10th batch is being taught to buy and sell shares and also invest in Mutual funds - November 2019
Mahendran Anandham
Now the 10th batch is being taught to buy and sell shares and also invest in Mutual funds - November 2019
Mahendran Anandham
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John Rogers Jr. CEO of ARIEL CAPITAL MANAGEMENT - Founder of ARIEL COMMUNITY ACADEMY
A South Side native, Rogers first got enthused about investing at age 12 when his father began buying him different stocks every birthday and Christmas. After graduating from Princeton, where he was captain of the basketball team, he started Ariel when he was 24 with his own savings and investments begged from friends and family. Today, it has more than $13 billion under management in three mutual funds and separate accounts for 89 institutional clients. Rogers was also a close adviser to Senator Barack Obama, who lived just five blocks down the street from the school in the Kenwood neighbourhood ( now of course he is the President of the United States of America and he has has moved to the White House). Rogers, whose company spends nearly $1 million a year on the school, would love to see it churn out future portfolio managers, accountants and investment bankers. But for now he finds it "absolutely thrilling" just to sit in on the children's discussions about stocks.
Nurturing their education and watching them grow up and have fun with the stock market, he said, is
"one of the greatest feelings in the world."
John Rogers Jr. is a man that I admire very much. It was he who motivated me to do some something for my community and I started Chutti Crorepati Club on 4th February 2011. Yes if he can do it - "YES WE CAN" And I agree with him that watching the kids grow up and have fun with the stock market is definitely " one of the greatest feelings in the world"
Mahendran Anandham
[email protected]
919443333655
Nurturing their education and watching them grow up and have fun with the stock market, he said, is
"one of the greatest feelings in the world."
John Rogers Jr. is a man that I admire very much. It was he who motivated me to do some something for my community and I started Chutti Crorepati Club on 4th February 2011. Yes if he can do it - "YES WE CAN" And I agree with him that watching the kids grow up and have fun with the stock market is definitely " one of the greatest feelings in the world"
Mahendran Anandham
[email protected]
919443333655
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I have uploaded the article that gave me the idea to start Chutti Crorepati Club.
In the article there is a mention of a Senator Barack Obama who lives a few blocks away from the school. Yes he is the same Barack Obama who is now the President of the USA.
chicago_school_starts_financial_education_early.doc | |
File Size: | 73 kb |
File Type: | doc |
CHUTTI CROREPATI CLUB
The aim of the club is to teach our students about the value of money and how it can grow if invested wisely. The club aims to teach the various avenues of investments and teach them the risks and returns associated with them. To learn how to swim one has to jump into the pool, so likewise the students are encouraged and guided to jump into the pool of investments and invest in them with money collected from club members. All students from class III to class XII are divided into four Investment Associations.
The Chutti Crorepati Club Board
Warren Buffett Association Rakesh Junjunwalla Association
Robert Kiyosaki Association Peter Lynch Association
The Chutti Crorepati Club Board will consist of the following:
EXECUTIVE BOARD MEMBERS of Warren Buffett Association
1. CEO ( Chief Executive Officer ) Class XI
2. CIO ( Chief Investment Officer ) Class XI
3. CFO ( Chief Financial Officer ) Class XI
4. Sr. VP and Head of Sales & Distribution Class IX
5. Sr. VP and Chief Investment Officer Class IX
BOARD MEMBERS of Warren Buffett Association
6. VP and Head of Fund Management –Equities Class VIII
7. VP and Head of Fund Management – Fixed Income Class VIII
8. VP and Head of Marketing Class VII
9. VP – Customer Service Class VII
10. Associate VP Investment Management Class VI
11. Associate VP Investment Management Class VI
12. Associate VP Investment Management Class V
13. Associate VP Investment – Customer Service Class V
14. Associate VP Investment Management Class IV
15. Associate VP Investment – Customer Service Class IV
16. Associate VP Investment Management Class III
17. Associate VP Investment – Customer Service Class III
18. Director Class X
19. Director Class X
20. Director Class XII
21. Director Class XII
22. School Staff – Mentor and Guide
Each section in each class of the school will choose 8 members (2 from each house) to represent them in the Associations. Each class will chose 2 members from the chosen 8 members of each section of each class to represent the Board of the Associations. Only Class XI will choose an additional member.
Investment decisions are to be made solely by the Top Five members of the Board. But remember the Top five Board members will have to listen to the collective ideas and suggestions put forth by all members who are students from Kindergarten to Class XII. The School staff who is a member of the Board is the Mentor and Guide but she also cannot involve in the decision making process.
Each member will contibute Rs.20,000 as virtual money which would work out to about Rs.1 crore for each Fund House to invest in asset classes like Gold/Silver, Real estate, Share markets/Mutual funds, Life / Health Insurance, and Fixed interest investments, The Fund Manager along with her team invests the 1 crore allocated to them in the following ratios:-
The Board will meet every fortnight to review and discuss the performance of the Fund The CEO and the CIO will give their report giving their reasons for their investment decisions. The CFO will give details of the current assets and value of their investments.
The club will have a meeting every fortnight for about one hour to one and a half hour. The CEO of the Fund will tell the members how the fund has performed during the past 2 weeks since they last met. Entries of new investments made during the fortnight will be entered by the respective Fund Managers. The Fund manager discusses with the team how to invest the money collected. Every month a guest speaker is called from the investment world (Bank, Post Office, Mutual Fund and Insurance and Real Estate etc.,) to speak to the club members. There will be approximately 20 meeting in one academic year. The knowledge gained by the club members in these 20 meetings will help them in their future far more than all the academic knowledge they gain . Because academic knowledge helps them to earn money by getting good jobs etc,. It is more important to learn how to save and invest the money that they earn.
The formation of this club has many benefits for the students.
More than learning to work hard for money ,
Learn to make your money work hard for you.
Projects
1.Visit to a bank
2. Learn about cost of things
3.Learn about saving – not just money (water, electricity, energy etc)
4.Learn about Value .
5.Learn about Need, Wants and Dreams.
6.Start a Company – Project for Class XI – Junior Achievement
7.Start a “ Chutti Crorepati Club “ quarterly bulletin
The Chutti Crorepati Club Board
Warren Buffett Association Rakesh Junjunwalla Association
Robert Kiyosaki Association Peter Lynch Association
The Chutti Crorepati Club Board will consist of the following:
- Chairman of the Club - The Principal
- Head Girl - Student Elect
- Director - School Staff
- Director - School Staff
- Director - School Staff
- Director - School Staff
- Non-Executive Director - Secretary of the School Board.
- Non-Executive Director - Parent of a student.
- Non-Executive Director - Parent of a student
- Non-Executive Director - Member of the Public
- Non-Executive Director - Member of the Public
EXECUTIVE BOARD MEMBERS of Warren Buffett Association
1. CEO ( Chief Executive Officer ) Class XI
2. CIO ( Chief Investment Officer ) Class XI
3. CFO ( Chief Financial Officer ) Class XI
4. Sr. VP and Head of Sales & Distribution Class IX
5. Sr. VP and Chief Investment Officer Class IX
BOARD MEMBERS of Warren Buffett Association
6. VP and Head of Fund Management –Equities Class VIII
7. VP and Head of Fund Management – Fixed Income Class VIII
8. VP and Head of Marketing Class VII
9. VP – Customer Service Class VII
10. Associate VP Investment Management Class VI
11. Associate VP Investment Management Class VI
12. Associate VP Investment Management Class V
13. Associate VP Investment – Customer Service Class V
14. Associate VP Investment Management Class IV
15. Associate VP Investment – Customer Service Class IV
16. Associate VP Investment Management Class III
17. Associate VP Investment – Customer Service Class III
18. Director Class X
19. Director Class X
20. Director Class XII
21. Director Class XII
22. School Staff – Mentor and Guide
Each section in each class of the school will choose 8 members (2 from each house) to represent them in the Associations. Each class will chose 2 members from the chosen 8 members of each section of each class to represent the Board of the Associations. Only Class XI will choose an additional member.
Investment decisions are to be made solely by the Top Five members of the Board. But remember the Top five Board members will have to listen to the collective ideas and suggestions put forth by all members who are students from Kindergarten to Class XII. The School staff who is a member of the Board is the Mentor and Guide but she also cannot involve in the decision making process.
Each member will contibute Rs.20,000 as virtual money which would work out to about Rs.1 crore for each Fund House to invest in asset classes like Gold/Silver, Real estate, Share markets/Mutual funds, Life / Health Insurance, and Fixed interest investments, The Fund Manager along with her team invests the 1 crore allocated to them in the following ratios:-
- Gold/Silver 10% to 50%
- Property / Real Estate 10% to 50%
- Share Markets/Mutual Funds 10% to 50%
- Insurance 10% (or less)
- Fixed interest investments 10% to 50%
The Board will meet every fortnight to review and discuss the performance of the Fund The CEO and the CIO will give their report giving their reasons for their investment decisions. The CFO will give details of the current assets and value of their investments.
The club will have a meeting every fortnight for about one hour to one and a half hour. The CEO of the Fund will tell the members how the fund has performed during the past 2 weeks since they last met. Entries of new investments made during the fortnight will be entered by the respective Fund Managers. The Fund manager discusses with the team how to invest the money collected. Every month a guest speaker is called from the investment world (Bank, Post Office, Mutual Fund and Insurance and Real Estate etc.,) to speak to the club members. There will be approximately 20 meeting in one academic year. The knowledge gained by the club members in these 20 meetings will help them in their future far more than all the academic knowledge they gain . Because academic knowledge helps them to earn money by getting good jobs etc,. It is more important to learn how to save and invest the money that they earn.
The formation of this club has many benefits for the students.
- They learn to work as a team
- They learn to calculate the returns of their various investments.
- They learn from the performance of the other three funds.
- They learn to differentiate between fixed returns and variable returns.
- They learn about the risks associated with different asset classes.
- The best part is that they learn to save and invest their pocket money
More than learning to work hard for money ,
Learn to make your money work hard for you.
Projects
1.Visit to a bank
2. Learn about cost of things
3.Learn about saving – not just money (water, electricity, energy etc)
4.Learn about Value .
5.Learn about Need, Wants and Dreams.
6.Start a Company – Project for Class XI – Junior Achievement
7.Start a “ Chutti Crorepati Club “ quarterly bulletin
Glowing Diya is a JA Company @ PSC SCHOOL It was started in Oct 2011. It is a Junior Achievement Company that returned Rs.35 for Rs.10 invested. For more details click on the button above.
Phoenix is a JA Company @ PSC SCHOOL
PHOENIX is the third Junior Achievement Company just started in July 2013. The IPO has just finished . They have started with a share capital of Rs. 12000
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Vriksha is a JA Company @ PSC SCHOOL
It was started in August 2012 and is a functioning Junior Achievement Company. It is doing great. For more details click on the button above.
Swara is a JA Company @ PSC SCHOOL
SWARA is the 8th company formed in the school . It has started with a share capital of Rs.3000. For more details click the button above. |
CENTURIONS is the 9th company @ PSC School. 2019. The company is in the 4th month of existence.
CHUTTI CROREPATI CLUB THEME SONGS
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A Chutti Crorepati never gives up |
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