Beat The Market: Building Financial Literacy Through Real-World Investing

Beat The Market gives students the opportunity to develop essential financial literacy skills through hands-on experience in the stock market. Last term, eight groups of students were each allocated a virtual £10,000 to invest using the London Stock Exchange’s online trading simulator. Their challenge was to outperform the UK FTSE All Share Index while working collaboratively and making informed investment decisions.

Students met weekly to discuss market conditions, research companies and agree on investment strategies. Each group was responsible for deciding which shares to buy or sell, reflecting real-world investment processes.

The open structure of the club allowed students to invest in any shares available through the exchange, leading to thoughtful discussions about risk, diversification and ethical investing. One particularly engaging topic was whether to include so-called “sin stocks”, such as tobacco companies, which encouraged students to consider the balance between ethical values and financial performance.

Outstanding Performance

The best-performing group was: Joshua J, Jacahri D, George R and Koray E.

This group achieved a positive return, an impressive result given market volatility. Their success highlighted the importance of research, patience, and disciplined decision-making.

Key Learning Outcomes

Through participation in Beat The Market, students developed a strong understanding of how financial markets operate. Key lessons included:

  • The importance of independent thinking and not relying solely on AI tools for investment decisions

  • The risks of reacting to short-term political or economic events, such as the UK budget

  • The value of diversification and long-term investing

  • Understanding why stock-market trackers can be difficult to outperform

  • Gaining confidence in discussing financial ideas and strategies

These lessons provide students with valuable life skills that extend beyond the classroom.

Looking Ahead

Next term, the club will focus on further improving financial literacy by:

  • Refining investment strategies

  • Encouraging student-led presentations

  • Exploring alternative investments

  • Developing a deeper understanding of risk and reward

And for an added challenge, students will aim not only to beat the market, but also to outperform the teacher’s own investment portfolio!