Boosting financial literacy through the Stock Market Learning contest

This year, the Luxembourg Stock Exchange (LuxSE) once again participated in the global awareness campaign Ring the Bell for Financial Literacy, underscoring the crucial role that stock exchanges play in educating investors. This event was part of the broader campaign led by the World Federation of Exchanges (WFE) in support of the International Organization of Securities Commissions' (IOSCO) World Investor Week (WIW).

As part of this global effort, we were pleased to hear from Lisa Wells, Vice President & Head of Marketing at Spuerkeess, and Claude Hermes, Stock Market Learning Program Leader at Spuerkeess, during a panel discussion at our Ring the Bell ceremony on 7 October 2024. Both speakers shared their perspectives on how financial literacy initiatives, like Spuerkeess’ Stock Market Learning program, are empowering the next generation to make informed financial decisions.

The role of banks in promoting financial health

When asked about the role of banks in strengthening financial literacy and how the Stock Market Learning program supports this mission, Lisa Wells emphasised the vital role banks play in promoting financial health across all age groups. Spuerkeess promotes a strong savings culture, which is part of its DNA and central to its social mission. Lisa Wells stressed the importance of guiding customers – particularly younger generations – through today’s increasingly complex financial landscape.

“Many young adults enter adulthood without the essential knowledge to make informed money choices,” she noted, explaining that Spuerkeess aims to equip them with foundational skills early on, enabling them to make better decisions throughout their lives. “We want to make finance accessible, not intimidating. This program helps demystify the stock market by breaking down complex topics into manageable insights,” she explained.

She also elaborated on the design of the Stock Market Learning contest, which combines education with practical experience: “That’s why we organise initiatives like the Stock Market Learning contest, where high school students, along with Axxess Study and Axxess Job customers, can learn about investing in a fun and interactive way. Running since 1983, it is now the largest stock market simulation game across Europe.”

Learning by doing: The value of real-world experience

Claude Hermes highlighted the essential role that practical learning plays in bridging the gap between theoretical education and real-world financial understanding: “The Stock Market Learning contest offers a hands-on experience for participants. It’s not just about learning financial terms, but about engaging with real-time data, understanding the fluctuations in the market, and making informed decisions.”

He went on to explain how the program has evolved over the years by adding new financial instruments, including the LuxX Index, to offer a more complete selection of securities available for trading in the game. Throughout a period of four months, participants can trade EUR 50,000 worth of fictitious capital following real-time market movements. In this period, participants can trade as often as they’d like, learning valuable lessons about managing portfolios, the risks linked to different asset classes and the costs associated with trading.

To further increase the educational value of the game, Spuerkeess has created dedicated web pages featuring educational materials, and the contest provides detailed information about each security. To encourage users to stay engaged and motivated, the score board is visible to players throughout the trading period, allowing all participants to see how their portfolio is performing compared to those of their peers.

Incentivising a more responsible approach and sustainable practices

The Stock Market Learning program strengthens financial literacy while rewarding participants for their achievements. Among the prizes is an award for the best performing sustainable investment portfolio, emphasizing the importance of responsible investing.

Lisa Wells further highlighted Spuerkeess’s commitment to responsible investment, adding, “As a transition enabler, we encourage participants to embrace responsible investment practices and at the end of the contest, we award those who manage to create financial value while supporting companies that address global challenges like climate change.”

Game on!

According to Claude Hermes, close to 1,000 participants aged 15 – 29 have signed up for the 2024-2025 edition, which kicked off in October.

The teams at LuxSE wish all the 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 check out the educational resources available, go to spuerkeess.lu/en/sml/.

We also encourage you to keep an eye out for the next instalment of this series featuring the Stock Market Learning contest!

This article was written by Jo Welter.