Literacy?

Why Investment

Literacy?

Participation in capital markets is one of the leading indicators of future financial stability and the single greatest predictor of intergenerational wealth. Those individuals and households who actively participate in the markets are also far more likely than their counterparts to take advantage of additional financial resources like checking accounts or insurance, to save for future expenses like buying a home or sending a child to college, and to make wise choices for their personal financial health. Despite its life-changing significance, the competence and confidence to participate in capital markets – what PwP refers to as “Investment Literacy” – is a life skill that is rarely taught in the classroom.

A 2016 study from RBC reports one third (35%) of American adults receive no instruction whatsoever on investing. Another third (39%) report “teaching themselves”. More recent studies indicate the number of adults who graduate school without investment education may be far greater, with the most acute and persistent gaps existing in historically marginalized communities of color.

A low level of Investment Literacy within a community results in a devastating financial waterfall effect that can last for generations. Low investment confidence contributes to a more general skepticism of the financial system at large, which leads to lower levels of stock market participation and a self-fulfilling cycle of financial exclusion and stagnation.

But the good news is that this cycle can easily be broken! Higher levels of investment confidence are strongly correlated to wiser financial decisions later in life, and investment literacy is a skill that can be strengthened at any age. It is possible to break the chain of financial exclusion by coaching and supporting a young person towards their first investment transaction. Asset ownership, particularly at an early age, can be transformative for their financial health in the future.

PWP Academy

The PwP Academy unlocks the powerful experience of learning how to invest by providing student users with an experiential financial education. Lectures are delivered by PwP’s Master Class players, some of the world’s greatest investors, alongside professionals and executives from our full range of industry partners. The curriculum will focus on real-life investing scenarios and discuss how academic concepts like stock investing, portfolio construction, and risk management are applied to real financial markets.

We aim to close the gender and minority gaps in financial literacy by specifically targeting our program to underserved communities and demographics. The educational resources we provide our students will always be offered free of charge. By giving students the opportunity to participate in online stock picking simulations, collaborate with their peers to form investment opinions, and test their knowledge in a global competition alongside the world’s most accomplished investment professionals, we hope to equip the next generation of financial leaders with the tools they’ll need to succeed.