$1 million hypothetical portfolios: How kids from wealthy families at an elite Swiss school learn about money

With a sticker price of more than $160,000 a year, Institut auf dem Rosenberg in St. Gallen, Switzerland, may be one of the most expensive boarding schools in the world. So, it's only fitting that students learn about money.

But rather than focusing on basic budgeting and managing credit, finance classes at the elite Swiss institution cover wealth creation, philanthropy, family businesses and succession management.

"Being able to educate these future leaders gives us the privilege to pioneer course concepts," said Bernhard Gademann, president of the school. "Everybody should know about interest rates, inflation, share investment portfolios — nobody teaches this."

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In one of the most popular classes, which covers wealth creation and finance, students manage hypothetical $1 million portfolios and present their investment picks to the mock board of a family office — private companies that wealthy families establish to handle their investment management.

Classroom discussions, for students ages 12-18, cover various asset classes, risk versus reward and the power of compounding.

Too often, these topics are left out of traditional curriculums because they are considered "nonacademic," Gademann said. However, these ideas overlap with the same concepts taught in math and biology, among other subjects.

"It's truly important to understand the dynamics, the implications and why it's relevant because it touches every aspect of your daily life," Gademann said. "All of these things are interconnected, and wealth creation shouldn't be ignored."

"Not being