Week 5 (November 5, 2018)
We reviewed Dividends, EPS and PE Ratio again today as the kids were not completely clear on it.
We also went through all the main statistics on stocks and they are totally good with it.
Keep adding the price and calculating the value of the stocks you have in your portfolio.
On Tuesday is the mid term election in USA. Keep a special eye on the price of your stocks then.
NOTE: Next week is Remembrance Day. Jacob is away that day, and I was wondering if Fletcher and Trayson would like to come to the Sunday morning class 10.30am at Meridian Credit Union, Yonge & St. Clair. Its a wonderful class!
Registration for Winter Term will open on Friday! Spread the word.
Week 4 (October 29, 2018)
We covered the 3 remaining main analytics of a Stock:
- PE Ratio
The kids learnt about stocks being overvalued and undervalued. "Normal" PE tends to be between 15-25
1) Update your portfolio with the Market Cap, Beta, EPS and PE Ratio for each stock in your portfolio (including the new ones you buy). The columns have been added to your portfolio.
2) Look at the PE of the existing stocks in your portfolio. You need to end up with one OVERVALUED stock and one UNDERVALUED stock.
- If you have 2 stocks with "normal" PE - sell both of them and buy new ones.
- If you have 1 stock normal PE and one overvalued or undervalued - sell only the normal one and buy another one.
- The goal is that at the end one stock should be OVERVALUED and the other should be UNDERVALUED.
You need to add the price and value of each stock. If the totals get messed up don't worry, I can fix it. Focus just on picking stocks and following them for the week by adding the price and calculating the value.
3) We are doing a daily quiz. This is more for Level 2. (the kids in this class are all Level 1). They are more than welcome to try it. The first person with the correct answer gets a boost of $100 for a week. Winners will be declared in the daily email that goes out with the portfolio winner.
Week 3 (October 22, 2018)
We spent most of the time talking about analytics of the Stock Market. We looked at:
- Day's Range
- 52 Week Range
- Market Cap
- Trading Volumes
1) If you haven't done so, complete your homework where you compare GICs: https://explorerhop.com/pages/mission-find-your-fixed-income-product
2) In your portfolio. Sell your best performing stock and buy a stock which has a Beta over 1.82
3) Follow these 2 stocks for a week.
For instructions on how to show which stocks you sold and which ones you bought in the spreadsheet do this:
Week 2 (Oct 15, 2018)
We had another very good session. We learnt the basics of investing and how to invest only in things which meet your risk tolerance. We also covered the basics of the stock market: what is a stock, role of broker, stock market etc. We also learnt that if we want to invest in stocks one needs to read the news, follow the company, really understand how much risk you can take and observe what is happening in the market.
All kids will now play the Investment Challenge with the other kids from other classes.
Here is what they need to do:
1) In the following sheets determine how they want to invest their principal .
2) Download Yahoo Finance app on your devices as it gives you easy access to stock prices.
2) Complete the BLUE section in the attached sheets:
a) Figure out 2 companies you want to invest in. Kids should select these companies themselves. They should know what these companies do and why they want to invest in it.
b) Add the Ticker Symbol
c) Add the Stock Market it is traded on
d) Add the Current Price under Price (Oct 15)
e) Calculate how many shares you can buy given the amount you want to invest in stocks. Parents, you may need to help here.
f) Calculate the Value of the shares. You need to multiply the number of shares x price of the stock for that day.
g) Repeat process every day.
Here are the links to your individual sheets:
h) On the top right hand side you will see a comments icon. If the kids have any questions they can send me a comment there and I will get back to them.
See you next week!
Week 1 (Oct 1, 2018)
We had an awesome start to the program. Here is a summary of what we learnt and the homework the kids have. We add topics for discussion at home as we find the best way kids learn about money comes from parents and this starts the conversation at home.
- Kids learnt the 5 golden rules of saving and to ask themselves 3 questions before they buy anything:
- Do I need it?
- Will I use it?
- Will I enjoy it?
- We spoke about wastage and how ridiculous it is to spend money on something that is not needed.
- They also learnt before buying something, take a picture of it. If they still want it a week later then it's worth thinking about.
- After this, we learnt about the different types of banks: Big Banks, Local Banks, Credit Unions and Online Banks and discussed the characteristics of each and what are the important criteria in choosing a bank.
Homework (due Friday, October 5):
1) Kids can work on setting a goal for themselves on what they are saving. Here is a link to a short exercise to complete. https://explorerhop.com/pages/mission-save-more
2) They needs to do some research and find out which banks are giving them the best interest rate on a Savings Account. Here is a short exercise they need to complete and submit. https://explorerhop.com/pages/mission-which-bank-is-for-me
3) Kids should also try using the 3 questions and the picture technique above. So, when they go into a store, rather than buying something right away, they should ask themselves the 3 questions, take a picture and see if they really want it a week later.
4) Please ensure that kids have a bank account opened before the next class as we will be teaching them how to use online banking and the ATM. They need a debit card. It is not necessary to bring it to class. We will also try to start learning about Investing so that they can join the Investment Challenge that started this week with all our other students.
Discussions at home:
Discuss with your kids what is the biggest wastage in your home and ask them to come up with a plan on how to lower it. It could be food waste, leaving lights on, using the car to go 1 block, buying more toys, anything. The point is for parents and kids to figure out together how to reduce wastage and save money.
NO CLASS NEXT WEEK due to Thanksgiving. Next class is on October 15