'Pasangping' Is Not Allowed... A 13-Year-Old's Experience of Investment, Marriage, and Retirement [Essential! Financial Education]⑧

Hyohaeng Elementary in Hwaseong, Gyeonggi: 'Retirement Planning at 13'
Avoid Overspending... Growing Money with Stocks and ETFs
If No Money Left, Bankruptcy and Cleaning Duty Assigned

On the afternoon of the 22nd, visiting Class 4, 6th grade at Hyohang Elementary School in Hwaseong, Gyeonggi Province. When the presenter asked an OX quiz question, "Is BMW a company representing Germany?" the students formed circle shapes with their hands.
[Photo by Yeongju Jeon @ange]

"The reason our group decided to invest in France is because there are many famous companies and the country has hardly ever gone bankrupt."

On the afternoon of the 22nd, in Class 4 of 6th grade at Hyohang Elementary School in Hwaseong, Gyeonggi Province, 23 students introduced the countries they would invest in ahead of the 'National Exchange-Traded Fund (ETF)' mock investment project to be conducted during the second semester. When one presenter asked, "Which country's stock index is this graph showing?" more than a dozen students raised their hands, and voices such as "Korea!" "USA!" and "Wrong!" were heard throughout the classroom. When OX quizzes appeared, students even made large shapes with their hands above their heads.

As part of the elementary social studies curriculum's 'Various Countries of the World' unit, students study not only the economic scale and representative companies of each country but also the stock indices over the past 3 or 10 years. The reason students' eyes sparkle even during the potentially difficult and boring study of 'money' is that the annual class activities are inseparable from finance. Students collect and manage class currency worth about 500,000 won weekly as their allowance, experiencing financial life for the next 50 years in advance.

'Preparing for Retirement at Age 13' is a project where participants age 5 years every month, indirectly experiencing economic and financial concepts. The 6th-grade, class 4 students at Hyohang Elementary School in Hwaseong, Gyeonggi Province, turned 48 this month and will retire at 58 in December. Deposit and loan interest rates are determined by a student playing the role of the 'Bank of Korea Governor' who rolls dice.
[Photo by Jeon Youngju @ange]

This economic classroom program called 'Retirement Preparation at 13' is a project where students age five years every month, indirectly experiencing economics and finance. From March, when the new semester begins, to December, over nine months, students vividly experience salary, investment, savings, and consumption. The program was recognized for excellence and creativity, receiving the Financial Supervisory Service Commissioner’s Award in 2021.

The goal of Class 4, 6th grade students is not to go 'bankrupt' while aging by the end of the year. In March, the students were 13 years old, but by April, they turned 18 and went to the military. Watching their weekly allowance halved, they personally learned about the possibility of income reduction due to illness or retirement. From May, when they turned 23, they experience university, marriage, and retirement preparation. If they choose university, they must repay a student loan of 3 million won, but they can earn additional income by reading four books and writing reading reports. Students who get married pool money as an economic community until retirement at age 58 in December. They can also receive congratulatory money from close friends.

For more secure retirement funds, students increase their money through so-called 'splitting accounts.' For investment accounts, after discussing investment strategies with their parents, they choose stocks in the first semester and ETFs in the second semester for mock investments. Friends who choose the same investment destination gather to investigate what happened to the companies or countries during the week. Students call this time the 'shareholders' meeting.'

A student from Class 4, Grade 6 at Hyohang Elementary School in Hwaseong, Gyeonggi is organizing their payroll bankbook.
Photo by Yeongju Jeon @ange

Kim Ye-eun (13), who dreams of becoming the second Warren Buffett, said, "I am ranked 10th in returns in our class. Thanks to investing in Apple and Intel," adding, "I feel I have learned a lot while studying through presentations."

Class president Jeong Ye-dam (13) said, "I invested a total of 1.84 million won in Samsung Electronics and Coupang, but the return dropped to -18%," and added, "From now on, I think I need to check how much a company can grow. ETF investment seems safer than stocks."

If investment risk is burdensome, students can experience compound interest effects through savings accounts. The interest rate for deposits and savings is decided by a student playing the role of 'Bank of Korea Governor' rolling dice. Seo In-hyeok (13), who has saved over 10 million won, started focusing on savings after suffering losses in investments. He said, "I save about 70% of my weekly allowance."

With the class currency earned this way, students can consume various products and services. Popular items in Class 4, 6th grade include jelly and cleaning or reading report exemption coupons. For a large sum of 5 to 6 million won, students can purchase a 'home ownership' service to secure a good seat in the classroom. However, caution is needed to avoid bankruptcy due to overspending. Students who have no money saved by December must clean the classroom with the teacher.

Students of Class 4, Grade 6 at Hyohang Elementary School in Hwaseong, Gyeonggi, are showing their salary, investment, savings, and spending bankbooks.
[Photo by Yeongju Jeon @ange]

Kim Ji-hwan, a teacher who has been running the 'Retirement Preparation at 13' program for four years, said the reason for creating this project was, "During the COVID-19 pandemic, I tried financial management, but I couldn't apply any knowledge learned at school," adding, "I thought it would be more effective if finance was properly and consistently taught in public education, not just economic theories like supply and demand." He continued, "I started developing the project by coming to school during vacations and organizing it on the blackboard, and now I am working on improving the project through an economic education research group of about 1,000 elementary and secondary teachers."

He also advised, "Although class time may be limited, it can be linked as much as possible with subjects. For example, linking interest rates and rates of return with the math unit on 'ratios and proportions,' and teaching compound interest effects through the physical education activity 'Zombie Tag.' Since students must set goals like 'not eating ramen at night' or 'not fighting with siblings' to receive their weekly allowance and evaluate themselves, there is also an aspect of character education."

Although schools are known to consider money topics taboo, the reaction around Teacher Kim has been positive. He explained, "In four years, I have never received a single complaint. The school environment has changed a lot," adding, "Recently, financial apps have become convenient enough for students to do mock investments, and some parents even recommend practicing mock investments early to prepare for managing finances well later."