Investing in Their Future at Ariel Community School

[Robert Heiny]

John Rogers has made a commitment as a partner to students at the Ariel Community Academy (ACA), a one-of-a-ckind public elementary school on the South Side of Chicago. He encourages experimenting with financial literacy in elementary schools. He wants to add an "I" for investment to the 3 Rs. Reshma Kapadea drew out these descriptions during an interview with John.

My dad had a lot of rules he had set up for me before I was born. He had a set time when I should have a checking account and a savings account. He wanted me in the stock market at 12 and a summer job at 16. It was all set in stone. At first it really wasn’t fun getting stocks. It took a while until the dividend checks became meaningful. Then that really started to get your attention.

At ACA, teachers weave financial literacy throughout PreK-8th grade curricula. Imagine having a conversation with a second grader about scarcity and analyzing income statements and annual reports with middle schoolers. Starting at age 12, students begin managing investments funds with $20,000.

Students take basics—from biology to Spanish—plus classes on entrepreneurship and international investing. Teachers reinforce financial and economic concepts in every class, for example tying globalization into social studies.

Most impressive, is the $20,000 each incoming first-grade class gets from Ariel Mutual Funds and Chicago based Nuveen Investments, another school contributor. The two firms manage the portfolio until the students reach seventh grade, then the kids start making their own investment decisions. When they graduate, they return the initial $20,000. Half the gains go toward a school gift; the rest is split evenly among the students.

The eighth-grade portfolio stands at $30,771—a 12 percent return since the kids took it over, trailing the S&P by three points.



It's intriguing to read quotes of middle schoolers receiving stock ticker updates by text messages during the school day. Aren't mobile PCs a valuable tool for school!

Thanks, Dave Carpenter, for your AP article "A test of fiscal fitness." It reminded me of ACA and its worthy curriculum addition.

I wonder how many other schools emphasize financial investments and entrepreneurship with or without Tablet PCs, UMPC, MIDS, and other mobiles? Has anyone taken an inventory?

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