Copyright © 2009 Learning Point Associates. All rights reserved. The Stock Market Game ™ Study Trisha Hinojosa, Ph.D. Senior Research Associate October 2009

2 Learning Point Associates  A 501(c)3 nonprofit, education organization  Administers more than 60 distinct contracts and grants from a diverse set of funding sources  Manages annual revenues of approximately $30 million Our Mission We deliver knowledge, strategies, and results so educators will make research-based decisions that produce sustained improvements throughout the education system.

3 Overview  Study methodology  Data collection instruments  Study sample  Findings Impact on mathematics achievement and investor knowledge Student experiences Teacher implementation Effect on teacher investment behavior

4 The Stock Market Game  Teaches students about saving and investing  10 weeks, 15 weeks, or 1 year  Imaginary portfolio of $100,000  Online trading and monitoring of investments  Widely used: 30 years; 50 states; 11.5 million students

5 Study Methodology  Funded by FINRA Investor Education Foundation  Randomized controlled trial Impact on student achievement  Mathematics  Investor knowledge  Nationwide survey of teachers Teacher investment behavior Game implementation

6 Data Collection Instruments  Mathematics test (based on National Assessment of Educational Progress)  Investor knowledge test  Teacher survey  Student survey

7 Study Sample  1,200 teachers signed up  823 classrooms assigned  568 classrooms confirmed  Investor knowledge: 522 classrooms  Mathematics: 509 classrooms  Teacher surveys: 4,804  Student surveys: 2, classrooms

8 Analysis  Psychometric evaluation  Hierarchical linear (mixed) models  Intent-to-treat analysis  Treatment-on-the-treated analysis

9 Tests  Mathematics Test Number properties and operations Data analysis and probability Algebra (Grades 7–10)  Investor Knowledge Test Economic concepts Investment strategies Investor research Calculations

10 Student Achievement: Mathematics Effect Size: 0.25 (0.11 – 0.40) Effect Size: 0.17 (0.02 – 0.32)

11 Student Achievement: Investor Knowledge Effect Size: 0.43 (0.24 – 0.61) Effect Size: 0.45 (0.29 – 0.60) Effect Size: 0.39 (0.16 – 0.62)

12 Student Survey  Engagement with the game  Interaction with others  Beyond the classroom  Financial life skills

13 Student Experiences  Engagement with the game Majority report enjoyment and learning while playing The Stock Market Game.  Interaction with others Majority report positive and beneficial experience learning to work with others.  Beyond the classroom Some even report application of learning outside the school.  Financial life skills Most report that The Stock Market Game influenced thinking about financial planning.

14 Teacher Survey  Implementation Teaching practices Using lessons and materials created by The Stock Market Game Linking The Stock Market Game to outside resources  Investment Practices Financial planning Financial research Investment products and services

15 Teacher Implementation  Teaching practices Majority employed basic practices.  Using lessons and materials created by The Stock Market Game Majority used basic materials. Majority found them helpful.  Linking The Stock Market Game to outside resources Majority connected basic ideas to outside world.

16 Teacher Investment Practices  Financial planning Most engage in financial planning. 36% to 48% report that teaching The Stock Market Game was a moderate to major influence.  Financial research Majority conduct financial research. 31% to 62% report that teaching The Stock Market Game was a moderate to major influence.  Investment products and services Majority use investment products and services. 28% to 39% report that teaching The Stock Market Game was a moderate to major influence.

17 Summary  Mathematics achievement There was a positive and substantial impact on mathematics achievement.  Investor knowledge There was a positive and substantial impact on investor knowledge.

18 Summary  Student experience Positive and beneficial Increases thinking about financial planning  Implementation Easily adaptable to common teaching practices The Stock Market Game-created materials are helpful.  Teacher investment practices 38% to 62% report that teaching The Stock Market Game influenced investment practices.

19 Trisha Hinojosa, Ph.D. P: > F: North Wacker Drive, Suite 1231 Chicago, IL General Information:

20 Student Achievement: Mathematics Effect Size: 0.25 (0.11 – 0.40) Effect Size: 0.17 (0.02 – 0.32)

21 Student Achievement: Investor Knowledge Effect Size: 0.43 (0.24 – 0.61) Effect Size: 0.45 (0.29 – 0.60) Effect Size: 0.39 (0.16 – 0.62)