Stadio launches student share scheme

Stadio, a private education provider, has recently launched an innovative share scheme aimed at empowering its students to understand the world of investment and begin building generational wealth. The program, exclusively available to postgraduate students, provides each graduate with a thousand rand worth of Stadio shares at their graduation, at no cost to the students. The students are then locked in for two years before they can choose to trade the shares, purchase more, or hold onto them to build generational wealth. Stadio's Chief Financial Officer, Samara Totaram, explained that the initiative was born out of the desire to bridge the gap between education and financial literacy. The institution aims to not only give back to its students but also create a strong alumni base that can contribute to the growth of the institution. The share scheme is funded through 0.2% of Stadio's revenue allocated for the purpose, with shares purchased in the market and provided to students on an annual basis. Importantly, this does not lead to dilution for existing shareholders, as no new shares are issued to students. Stadio has partnered with Investec and the JSE Investment Services platform to educate students on investment strategies and provide them with the tools to manage their portfolios effectively. The lock-in period of two years serves as an opportunity for students to learn about wealth creation and active participation in the investment markets. After this period, students are free to make their decisions regarding their shares, including selling, purchasing more, or diversifying their portfolios. The reactions to the share scheme have been overwhelmingly positive, with both students and staff expressing excitement about the opportunity to participate in the program. Although there is still a need for further education on the significance of this initiative, many individuals have recognized the value of receiving shares as a gift and an investment in their future. Stadio plans to assess the success of the scheme after two to three years, once the first cohort of graduates is able to trade their shares. This evaluation will determine the impact of the program on students' financial literacy and their ability to engage in the investment world effectively.