First Steps into Investment Instruments

The StartInvest simulation allows players to gain initial experience in the field of investments. The investment decisions are purposefully limited to the option of investing in bonds or shares respectively leaving the money on a bank account. The decisions are deliberately kept very simple in order thatto the keep the entry threshold is low. With many the main target group being at Finance entry level, the simulation intends to improve financial literacy.

Players learn about the relationship between return and risk, as well as the concept of diversification. The aim of the simulation is to grow assets in a meaningful way by interpreting simple market signals. The development of the financial markets is simulated by dice rolls, which makes the random nature of the markets easier to understand.

The simulation is played in periods. Each simulated year represents one complete game period, which is systematically organized into monthly segments. To enhance strategic decision-making opportunities, participants have the ability to evaluate and reallocate their investment portfolio on a quarterly basis.

Players learn about the relationship between return and risk, as well as the concept of diversification. The aim of the simulation is to grow assets in a meaningful way by interpreting simple market signals. The development of the financial markets is simulated by dice rolls, which makes the random nature of the markets easier to understand.

The simulation is played in periods. Each simulated year represents one complete game period, which is systematically organized into monthly segments. To enhance strategic decision-making opportunities, participants have the ability to evaluate and reallocate their investment portfolio on a quarterly basis.

Necessary Theoretical Background

The simulation's intuitive and simple design eliminates barriers to entry, making it accessible to participants regardless of their prior experience. This streamlined approach ensures that learners can focus on developing strategic thinking and decision-making skills. However, knowledge of basic terms like return and risk is helpful. Evaluations according to the game periods allow for a target group-oriented analysis, i.e. depending on the knowledge of the participants, the analysis can be carried out more superficially or in greater depth.

Target Group

Since hardly any basic knowledge is required, the simulation is suitable for diverse target groups. Due to the low complexity, the simulation is particularly valuable for finance students in their early semesters, while also being accessible to high school students, children with an interest in financial concepts, and university students from non-finance disciplines. The simulation's intuitive design creates an inclusive learning environment where participants can develop fundamental financial decision-making skills regardless of their academic background.

The simulation facilitates an understanding of the relationship between risk and return in an investment context, enabling players to achieve a higher level of understanding according to the taxonomy of learning objectives.

Course Design

The simulation can be played in class or online. It is also suitable as a game that can be played on your own. It makes sense to play for at least three years, i.e. 12 game periods in order that the effect of diversification becomes clearer, and the random factor is not too influential. The time required, including a short explanation and game introduction, is approximately 1.5 hours.

Due to the low complexity and the short duration of the individual game periods, the simulation is also suitable as a way to break up lecture sessions.