Elite Swiss Boarding School Teaches Students How to Become Millionaires
Institut auf dem Rosenberg in St. Gallen, Switzerland, might be one of the most expensive boarding schools in the world, with a yearly tuition over $160,000. But rather than focusing on traditional financial literacy, like budgeting and managing credit, this elite institution prioritizes wealth creation, philanthropy, family businesses, and succession management.
Key Takeaways:
- Elite Swiss boarding school prioritizes wealth creation over traditional financial literacy.
- Students learn about investment strategies, asset classes, risk management, and the power of compounding.
- Financial education is becoming more common in U.S. high schools, with over half of states requiring personal finance courses.
- Research shows that financial education in high school can have a lifetime benefit of $100,000 per student.
A Curriculum for Future Leaders
The school believes that a comprehensive understanding of finance is essential for future leaders, and it incorporates these topics into the curriculum, rather than treating them as "nonacademic." Bernhard Gademann, president of Institut auf dem Rosenberg, emphasizes that "everybody should know about interest rates, inflation, share investment portfolios."
In one of the most popular classes, students manage hypothetical $1 million portfolios and present their investment picks to a mock board of a family office. This hands-on approach allows students to experience the complexities of wealth management firsthand.
The Growing Importance of Financial Literacy in the U.S.
While most students don’t have access to the exclusive financial education provided at Institut auf dem Rosenberg, financial literacy is becoming increasingly important in U.S. high schools. Over half of all states now require or are in the process of requiring personal finance courses before graduation.
The Lifetime Benefit of Financial Education
Research consistently highlights the benefits of financial education. A report by consulting firm Tyton Partners and Next Gen Personal Finance found that completing a one-semester personal finance course can generate a lifetime benefit of approximately $100,000 per student.
Managing Credit and Debt
Much of this financial value stems from learning to avoid high-interest credit card debt and leveraging better credit scores to secure more favorable borrowing rates for key expenses like insurance, auto loans, and home mortgages.
Students Are Most Interested in Investing
While young students are eager to learn about budgeting and credit, investing remains the most engaging financial topic for them. Educators are recognizing this and prioritizing lessons that focus on building wealth and reaching financial goals.
The Importance of Holistic Financial Education
While investing can be exciting, a well-rounded financial education encompasses a broader range of topics, including:
- Budgeting and banking
- Paying for college
- Taxes
- Credit management
- The psychology of money
Yanely Espinal, Next Gen’s director of educational outreach, emphasizes the need for a formal education that goes beyond social media to teach these critical concepts.
The Positive Correlation Between Financial Literacy and Well-being
Studies consistently demonstrate a strong link between financial literacy and financial well-being.
College Financing
Students with financial literacy courses are more likely to access low-cost loans and grants for college expenses, reducing their reliance on private loans or high-interest credit cards.
Credit Scores and Debt Delinquency
Financial education has been linked to better average credit scores and lower debt delinquency rates among young adults.
Asset Accumulation and Net Worth
Teenagers who receive financial education demonstrate higher asset accumulation and net worth by age 25.
The Trend Toward Financial Education Continues
The movement to incorporate personal finance courses into high school curriculum is gaining momentum in the U.S. With over 50 bills pending in 20 states, the future looks bright for financial literacy education.
The Impact of Financial Education
Investing in financial education not only benefits individuals but also creates a more financially stable society. Empowered individuals are more likely to:
- Manage their finances effectively
- Make informed financial decisions
- Avoid falling prey to financial scams
- Contribute to a more secure financial future
As financial literacy becomes increasingly vital in today’s complex financial landscape, initiatives like those seen at Institut auf dem Rosenberg and the growing focus on financial education in U.S. schools are crucial steps toward creating a more financially informed and empowered generation.
