I have never taught Personal Finance and the way it has been taught in the past by previous Professors I had no interest in following. I could not see a course that was to prepare you for your financial future that could be that dry. A course with online quizzes and tests could not possibly be the best way to learn about retirement. Having experienced investing with the stock market, CD’s and Mutual Funds, I know personally the pitfalls of investing in this current very shaky market and that’s what I wanted to teach the students. Not to be afraid to start NOW!

The logo for “Lertaw Investment Inc. -Growth comes from Within”

In the past, I have created these projects under the Bergecco-Parc Consulting Inc. banner, the main consulting company, the Orion Malls banner, a Mall design company and the Buscomonzefi.com banner, my Tech Division. Each business does its best to be creative, forward thinking and have a thought producing presentations. I also challenge the students to top on another in their presentations and build on what they have seen others do in the past.

Professor Justin Watrel, CEO Lertaw Investment Inc.

So for my personal finance class, I got away from the traditional Bergecco-Parc Consulting Inc. banner that I use for my Marketing, Management and Communications classes and created Lertaw Investment Inc. Lertaw is my last name spelled backwards (okay, I thought it was clever).

So I created the scenario of the Team Project was I was the CEO of a family Investment company with headquarters in Newark, NJ, where it was founded back in the early 1800’s. This company was an offshoot of another family company that was founded after the Revolutionary War. All the students were new hires who were on probation with the company and had to prove themselves.

The Original Project and Teams with the First Task:

With so many students in this class, (I originally started with 35 students that went to 31 by the time the class was over), I broke each Team up into a Team of five lead by a Divisional Vice-Presidential and an Investment Advisor who would be their second in command. They were assigned with giving everyone a part of each week’s tasks.

For the next four weeks what I would do is give each group a series of tasks and activities that the student financial consultants had to work on as a Team. Each Team was given a budget of $25,000 and had to use this investing account to pay for client purchases and for Team expenses.

While I was doing that, each individual student had to write their own investment paper. The scenario I gave each student was that their great aunt died and left them $5,000 with the stipulation that they could not spend the money but invest it for their future. I gave a series of scenarios here as well. I figured this paper would force them to think more about the overall project. It really got them thinking.

Paper Three: Creating a Personal Financial Plan from a $5,000 inheritance from your Great Aunt:

The first Task: Opening a CD at your local bank for $1,500.

Over the next three weeks while I had the students working on their Team Project, I gave each of the students tasks to invest in for their money from their Great Aunt. The first task was they had to go to the bank and get information for opening a CD for $1,500. This way I forced all these students to talk to their banks to get a perspective on HOW to invest their money in the future.

Paper Three Task Two:

The next task was to spend $1,200 on a series of stocks that include one Tech Company, two Food Companies and one Banking Company

Paper Three Task Three:

The last task was to open a Bond for $300 (I made a math mistake and it would have been $3,000). Oh well, this way they had money left over to keep for emergencies.

While the students were writing Paper Three for the class and doing their research for the their personal papers, which was a big part of their grades, they were using some of their personal research for their Team assignment. This way each Student Investor brought their own research and perspective to the project. This way the project got five different opinions.

Task One for the Team Project included:

(This is part of the initial package that I gave the students)

Invest $4000 in two high interest CDs for a client. This is where the individual research came in handy and each student could contribute their research on this part of the project.

Buy $6,000 of stocks in Two Tech Companies. Two Energy Companies, Two Foodservice and Two Travel Stocks. The Student Investors got to pick the companies and the amount at each company that they wanted to spend.

Plan a Cocktail party with creating a menu, invitation and budget between $1000 and $1200 in our Newark Headquarters. The Cocktail Party was going for be for both perspective clients and established customers plus Corporate members wanting to meet everyone.

Task Two of the Team Project:

The Vice-President and the Financial Advisor had to take a Business Trip to Boston, MA to meet with clients. The rest of the Team will stay behind in the office. You have to set up a travel budget for your trip for Lertaw Investments for the trip. This money will be deducted from your $25,000 so you need budget. The company will let you travel First Class if you want but it will lower your investment amount.

The top executives had to book either a Railway Ticket Round Trip or an Airline Ticket from Newark to Boston and back, a hotel room for two nights (Breakfast is included in the hotel stay), meals for lunch and dinner and extra money to see the sites in Boston if you want. Please set up the travel budget for two people and how much the Business Trip will cost.

They had to buy $5,000 worth of Mutual Funds (Vanguard, American Century Investments, T. Rowe Price etc.) for the client. You need to tell me what funds you want to buy and how much. The client is leaving this at your discretion.

Their Client wanted them to buy $2,500 worth of McDonalds stock. They want to buy as much as possible with the $2,500 so you need to watch the stock price of McDonalds and what day you will buy it. Your Team needs to tell me when you bought it, how much you bought and at what price did you buy it at.

Task Three of the Team Project:

Invest $5,000 in bonds and they could choose the terms to get the best yield.

Task Four of the Team Project:

Lertaw Investments is looking for a new Healthcare plan. The company wants proposals for new Dental, Visual and Medical plans for each of your Teams

Please sell $1,500 shares of McDonalds stock and note on your account whether you had a profit or loss on the sale. Please by $1,500 worth of Chipotle and Krispie Kreme stock. You can buy whatever shares you want of the stock but the client wants the most for their money. The remainder of the $1,000 worth of McDonald’s stock will stay in the account and please monitor the profit/loss on this investment.

Corporate liked your proposal for the cocktail party and your budget for the business trip up to Boston. They have reimbursed you for the expenses so put the money back into your account. You know must buy $1,500 worth of Automotive and Airline stocks. Please pick two automotive and one airline stock. The client is leaving the discretion of the number of shares of stock up to the Team.

Task Five of the Team Project:

The Team needed to arrange a Team Dinner for the members of your Team. Please pick a restaurant in Newark, anyone you like, and tell me the name, provide menu and pictures and what your Team will order. Remember you are considered over 21 and can drink so please think of the wine and cocktail menus as well. Your budget for dinner must be $1,000 and below. Remember that tax and tip need to be included. Some restaurants have fees for parties over five so this needs to be included.

With the remaining money in their budget, they could buy stocks of their choice. The Client now trusts you and your Team can use its discretion.

To end this project, the Team should have a remaining budget of $1,000.00 left or as close to it as possible. There are always emergencies that need to be covered and there should be this amount left in your account. The rest of the money should be spent.

The final part of the project, the Team should finish their last report with a complete breakdown of how your Team spent their $25,000.00 budget as the final page of the report and I wanted to see everything footnoted.

Each class I would do my lecture on the chapters in the book which covered the topics in the scenarios and then leave them the last half hour to meet with their Teams in class. Each Team then had to submit their findings in a full report, which they had three attempts to get correct. Only one Team of the five did it correctly and even they made mistakes.

I also set up a prize for this two step process. The Team with the best report would get ten (10) points added to their Midterm (and trust me, the class Midterm results were not that good) and then that Team would get promoted to the President and SVP of Operation’s and create the Corporate website and PowerPoint presentation for the project. I swear, I have the eye for Corporate talent and the Team that won did an excellent job with both.

The pitfall with this project like any Team project, both in school and in the workforce, there are those who do not want to do their work or milk their share of the project so they do not have to do anything else. I had to ‘fire’ (i.e. fail) one student, who did not seem to care anyway (he spent the entire time in class on his cellphone texting his friends). I also had Student Investors who spent three weeks working on a simple Cocktail Party or Team Dinner (which had nothing to do with Personal Finance), so I had to grade them on this and deal with items like this.

I had to be a very proactive CEO with over thirty Student Investors doing all different types of investing and projects for their teams. The Vice-Presidents and Team Advisors had to hand in a report to me three times before their Final Team Report was due the week before the final exam and do their breakdown of how they spent their money. You see what people are made of when they had to do basic math. I had to check each report thoroughly, add up all their business expenses and make sense of everything. Only two groups got close to a professional type of report but I could see where the frustrations came in. Again some of the Team Members did not do their job properly and I had to deal with this. I now know why so many CEOs are so frustrated today and this is just a simulated project. Still I was very proud of these students who accomplished so much and learned the book’s subject matter on their own in a pace that made sense to them.

This is what learning is about especially about Personal Finance. You have to spend the time figuring it out for yourself and that is the hardest part of life.

The Project:

Here is the PowerPoint:

https://drive.google.com/file/d/1o-jnsPXdF2BHltZrAvcK1FOd-to7_s22/view

Here is the Presentation on YouTube:

Here is the website on the Team Project:

https://lertawinvestmentinc.wordpress.com/

Team One:

Team Two:

Team Three:

Team Four:

During the Presentation, each Team had fifteen minutes to explain how they spent and invested their money, how they planned their dinners and cocktail parties and how they researched their business trip to Boston.

I was floored by each Team’s creativity and the selection of stocks, bonds, and CDs they chose as no two Teams were the same. With the exception of the winning Team, all the other Teams got an ‘A-‘ on their projects. I found this is a better way to teach rather than trying to get them to learn it from the book.

I am constantly amazed at what happens when you challenge students to learn. We are in a new era where just reading the book and exams will not be the norm. I just love the challenge of seeing students learn and having fun doing it.

I hope you all enjoy this Team Project.