Warren Buffet once said, “Someone is sitting in the shade today because someone planted a tree a long time ago” (Warren). Mr. Buffet emphasizes the importance of investing in capital markets over long periods of time through planned and decisive techniques. Understanding the basics of investing is essential to developing a secure financial future and maximizing the value of hard earned money. Capitalism has enabled the United States of America and its citizens to rapidly increase the productivity of our nation through free open and capital markets.
Overtime capitalists have revolutionized the way Americans invest developing critical financial lessons explaining ideas everyone must comprehend to be successful when Studying the markets and investing early do not guarantee returns on investments. In order to succeed in capital markets investors must be willing to take risks. The most effective way to manage risk is to diversify investments in bonds, stocks, and mutual funds.
Diversification will reduce your overall level of risk, allowing your investments to mature and Capital markets are constantly changing which requires a significant amount of patience nd discipline from investors. Market Analysts could compare investing in the stock market to riding a roller coaster. Excitement increases as the roller coaster slowly moves up the steep hill, but screams follow after the riders plunges toward the ground. While it is tempting to sell when the future appears bleak, low investment turnover rates are imperative in generating high returns.
Eventually, a bull market will return and the investors who held their ground during the recession “Separating your emotional involvement with a security from the purpose of its wnership will lead to better overall judgment and performance,” says Kenneth Hoffman, managing director and partner at HighTower’s HSW Advisors in New York City (Carlozo). Success in the stock market is not determined by emotion; as a result, investing with emotion is not advised. Investing in a company because they carry your favorite designer shoes or support a particular political party will lead to an irresponsible investment. Investment professionals believe objective thinking will assist investors in making intelligent investments, according to an article composed by Lou Carlozo in the U. S. News & World Report Money (Carlozo).
Understanding money and investing is challenging for millions of Americans. Board games, along with the rapid influx in the popularity of video games have assisted educators in teaching students life lessons in a fun, yet productive manner. As a child I have fond memories of playing Monopoly with my parents, not realizing the lessons the game intended to teach me. Modeling educational board games and video games after Monopoly could teach valuable money management lessons; as a result, I propose an original board game entitled, “Fight the Bear – Fight the Bear – Reward the Bull” is designed to teach the three keys to investing to children at an early age.
This kid friendly game intends to educate children about the stock market and the challenges of investing. Children will learn the importance of diversified investment portfolios, when to buy and sell, and investing without emotions. Ultimately, they will learn how to fight the bear markets and manage the bull markets. “Fight the Bear – Reward the Bull” is a simple game for children to learn in a short amount of time. Each player will start with $1,000 and will draw a card to determine their ollege debt. After determining their debt, each player will roll two dice and multiply their roll by 10 to determine their monthly salary. Each time the player lands on or passes the start they will receive their pre-determined salary.
On the board, there are eight sets of companies in different industries. In order for a player to achieve a diversified portfolio, they must purchase stock in three companies all from different industries. The player with the most money after paying off their debts and selling their stocks will win the game once each player has gone round the board 12 times. Throughout the board there are spaces called “Bull” and “Bear. ” A. player landing on a “bull” space draws a bull card which will increase their purchasing power. On the contrary, a player landing on a “bear” space draws a bear card which will decrease their purchasing power. Additionally, players will encounter unexpected expenses if they land on the space entitled “Bills” or “Capital Gains Tax. ” Marriot International Inc.
(MAR), Cracker Barrel Old Country Store, Inc. (CBRL), and Toyota Motor Corp. (TM) are three stocks I invested in during the Stock Market Game and appear in my new board game, “Fight the Bear – Reward the Bull. ” Throughout the Stock Market Game, MAR’s and CBRL’s returns increased by ten percent; whereas, the TM’s returns were down due to difficulties in the auto industry. Strong performances in MAR and CBRL mitigated losses in TM’s stock. In “Fight the Bear – Reward the Bull,” players are rewarded for a diversified portfolio by receiving dividends dictated by the companies and industries in which players choose to invest.
By providing incentives for players to diversify their portfolio, players re more likely to make intelligent investment decision that will assist them in developing a “Fight the Bear – Reward the Bull” is an innovative board game that will revolutionize how children of all ages learn about capital markets and investments. In a world saturated with iPhones, tablets, and laptops, this game can be sold through retailers both in stores and online through the App Store for both Apple and Android devices. Children’s ability to learn the basics of investing through an interactive game at an early age will assist many families in reducing debt and increase financial security.
