Investing in the future: The impact of stock market education on Luxembourg’s youth
At the Ring the Bell for Financial Literacy event in October, which was part of the World Federation of Exchanges’ (WFE) global campaign to raise awareness of the importance of investor education and protection, LuxSE was pleased to showcase Spuerkeess’ Stock Market Learning contest. To highlight its significance in promoting financial literacy among young people, former contest participant Leo Kayser and economics teacher Mike Thill shared their valuable insights and experiences.
"At the beginning of the year, when we introduce students to the first notions of the stock market, you'll see that some are knowledgeable, while others are completely in the dark," he explained.
To bridge this knowledge gap, Mike Thill emphasised the importance of starting with foundational concepts:
"Some students genuinely don’t know the difference between a share and a bond. Let’s not forget that most students aged 17-19 get only limited exposure to financial markets, underscoring the need for educators to provide essential financial education,” he underlined.
According to the OECD International Network of Financial Education’s 2023 International Survey of Adult Financial Literacy, young adults in Luxembourg aged 18-29 have a financial literacy score of 60, which is lower than the national average for adults but in line with the OECD average for this age group. This score ranks young adults in Luxembourg 14th in terms of financial literacy levels within this age bracket, highlighting the need to further support financial education initiatives at a local level.
Over a four-month period, each participant or team get the opportunity to invest and trade 50,000 EUR worth of fictitious capital in a broad range of financial securities based on real-time market movements. This experience allows them to gain valuable insights into portfolio management, the risks associated with various asset classes, and the costs of trading.
Leo Kayser, who finished second overall in the 2023-2024 edition of the contest, shared his personal journey into fictitious trading. He explained the investment strategy he opted for when participating in the contest, saying, "First of all, I tried to buy low and sell high, but that doesn't always work out the way you want it to."
Initially, Leo focused on volatile stocks, hoping that short-term investments could yield good returns. He recounted, "I looked at what I considered to be high-value assets but which were trading very low at the time," referring to his observations of significantly declining housing prices, which led him to invest in companies struggling to sell and rent properties.
Leo Kayser’s approach, however, was only one of many. While some of the best performing participants in that edition took a buy-and-hold approach with fewer than 10 trades, others completed over 100 trades over the four-month trading period, highlighting the diverse strategies used by the students. These different approaches underscore the importance of selecting investments carefully, staying informed, making educated guesses, and choosing key sectors.
Leo Kayser, for instance, included shares of major retailers, seeing potential in their undervalued stocks. "I jumped on an opportunity, and it paid off," he reflected.
Despite the role of luck in his success, he considered the experience to be both positive and useful, and appreciated the opportunity to learn, test and adapt investment strategies in a real-time contest without running the risk of losing real money. In each edition, at the end of the four-month trading period, the individuals or teams that managed to grow their portfolio the most will win a prize.
According to Leo Kayser, this increases the stakes and strengthens the emotional dynamics of the contest. Looking back, he underlined that:
"The Stock Market Learning contest illustrates well the critical role that emotions play in trading. The stock market may not be the most suitable environment for individuals who are very sensitive or highly emotional. At the same time, it may also represent an opportunity to learn how to manage both fear and greed, and thereby be better equipped to make good financial decisions in the long run.”
From a teacher’s perspective, Mike Thill encourages his students to join the contest individually or as a team, as it provides a hands-on platform to deepen their understanding of the stock market.
This "learning by doing" approach allows students to apply classroom knowledge, building both confidence and competence in their future money-related decisions. In his conclusion, Mike Thill emphasised that making financial education accessible and straightforward for young people is essential to equipping them with a comprehensive understanding of how to best secure their own financial wellbeing in the future.
The importance of foundational knowledge
Mike Thill, an economics teacher at the Lycée de Garçons de Luxembourg, shared his insights into the current state of financial literacy among students. During his 20 years of teaching teenagers core economics principles, he has observed a significant disparity in knowledge regarding financial instruments, noting that while some students are quite informed—often due to their parents' influence—others struggle with basic concepts."At the beginning of the year, when we introduce students to the first notions of the stock market, you'll see that some are knowledgeable, while others are completely in the dark," he explained.
To bridge this knowledge gap, Mike Thill emphasised the importance of starting with foundational concepts:
"Some students genuinely don’t know the difference between a share and a bond. Let’s not forget that most students aged 17-19 get only limited exposure to financial markets, underscoring the need for educators to provide essential financial education,” he underlined.
According to the OECD International Network of Financial Education’s 2023 International Survey of Adult Financial Literacy, young adults in Luxembourg aged 18-29 have a financial literacy score of 60, which is lower than the national average for adults but in line with the OECD average for this age group. This score ranks young adults in Luxembourg 14th in terms of financial literacy levels within this age bracket, highlighting the need to further support financial education initiatives at a local level.
Empowering young investors
Over the years, the Stock Market Learning contest has evolved to incorporate various financial instruments and provides participants with essential educational materials to successfully grow their portfolios.Over a four-month period, each participant or team get the opportunity to invest and trade 50,000 EUR worth of fictitious capital in a broad range of financial securities based on real-time market movements. This experience allows them to gain valuable insights into portfolio management, the risks associated with various asset classes, and the costs of trading.
Leo Kayser, who finished second overall in the 2023-2024 edition of the contest, shared his personal journey into fictitious trading. He explained the investment strategy he opted for when participating in the contest, saying, "First of all, I tried to buy low and sell high, but that doesn't always work out the way you want it to."
Initially, Leo focused on volatile stocks, hoping that short-term investments could yield good returns. He recounted, "I looked at what I considered to be high-value assets but which were trading very low at the time," referring to his observations of significantly declining housing prices, which led him to invest in companies struggling to sell and rent properties.
Leo Kayser’s approach, however, was only one of many. While some of the best performing participants in that edition took a buy-and-hold approach with fewer than 10 trades, others completed over 100 trades over the four-month trading period, highlighting the diverse strategies used by the students. These different approaches underscore the importance of selecting investments carefully, staying informed, making educated guesses, and choosing key sectors.
Leo Kayser, for instance, included shares of major retailers, seeing potential in their undervalued stocks. "I jumped on an opportunity, and it paid off," he reflected.
Despite the role of luck in his success, he considered the experience to be both positive and useful, and appreciated the opportunity to learn, test and adapt investment strategies in a real-time contest without running the risk of losing real money. In each edition, at the end of the four-month trading period, the individuals or teams that managed to grow their portfolio the most will win a prize.
According to Leo Kayser, this increases the stakes and strengthens the emotional dynamics of the contest. Looking back, he underlined that:
"The Stock Market Learning contest illustrates well the critical role that emotions play in trading. The stock market may not be the most suitable environment for individuals who are very sensitive or highly emotional. At the same time, it may also represent an opportunity to learn how to manage both fear and greed, and thereby be better equipped to make good financial decisions in the long run.”
Engaging students through competition
A key aspect of financial education within the younger generation is removing real-world risks and learning through gamification, as seen in the Stock Market Learning contest organised by Spuerkeess.From a teacher’s perspective, Mike Thill encourages his students to join the contest individually or as a team, as it provides a hands-on platform to deepen their understanding of the stock market.
This "learning by doing" approach allows students to apply classroom knowledge, building both confidence and competence in their future money-related decisions. In his conclusion, Mike Thill emphasised that making financial education accessible and straightforward for young people is essential to equipping them with a comprehensive understanding of how to best secure their own financial wellbeing in the future.
Game on!
LuxSE wishes all participants in the 2024-2025 edition of the Stock Market Learning contest across Luxembourg the best of luck, and we look forward to hosting the award ceremony at the exchange in March 2025!
To learn more about the Stock Market Learning contest and explore the educational resources available, visit Spuerkeess’ Stock Market Learning page.
Disclaimer: This blog post is for informational purposes only and does not constitute financial advice.
This article was written by Jo Welter.
