Students could benefit from experience of financial meltdown

As the world enters the worst financial crisis since the 1929 Wall Street crash, one organisation is viewing the problems as a real learning opportunity for young people.

Financial education charity the ifs School of Finance has opened registrations for their annual ifs Student Investor competition for teenagers.

The ifs Student Investor equips thousands of young people with the knowledge and capability to manage their own finances, both now and in the future, by providing a practical insight into stock markets, savings and investments.

It's free to enter, open to teams of 4 students aged between 14 and 19 and attracts over 30,000 participants each year.

Registration opens this week, with the challenge itself commencing in November. Students invest a fantasy £100,000 in the stock market over a four month period, followed by regional finals involving a business and finance quiz and a national final where the top 8 teams in the country compete for an all expenses paid trip to New York and £2,000 for their school or college.

Rod McKee, Head of Financial Capability at the ifs School of Finance, said: "Over £75bn has been wiped off FTSE 100 share prices this week alone and the financial troubles of the banking, housing, retail and travel sectors mean that business and finance is now making the front pages of most newspapers as well as leading the broadcast media. This in itself makes learning about saving and investing more relevant to many young people.

A considerable number of students, taking part in the ifs Student Investor will read the business and finance pages of newspapers and/or watch the news with interest for the first time because they want to know more about the companies or sectors they could invest in.

Better informed investors make for better returns and equipping young people with these skills can help them to avoid some of the pitfalls later in life.

It's also worth remembering - even in these troubled economic times - that since 1869 shares have produced an average annual return of 6.2% - more than three times the returns produced by gilts or cash.

We again look forward to a record number of teenagers taking part in the competition and urge all schools and colleges to take advantage of this learning opportunity."

To register to take part in the 2008-9 ifs Student Investor, please visit ifsstudentinvestor.org or call the customer services team at the ifs School of Finance on 01227 818609.