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See the web sites for hundreds of Finance Classes.  Including some of the classes I have taught.

1. Practical Teaching Tips
2. Specific Class tips

 
Practical Teaching tips

1. Give 5 minute breaks for any class over 90 minutes.
2. Learn the students by name.  This may require name tags or placards.  This is true for large or small classes.  Taking pictures is also a great idea!
3. Give partial credit for multiple step problems where an error in part 1 causes later answers to be wrong.
4. Allow cheat sheets.  The goal is understanding and not memorization.
5. Show tabular as well as calculations for TVM problems.  (also show on spreadsheet!)  My testing goal is to make finanicial calculators irelevant.  Setting up the problem is the hard part, not the arithmetic.
6. Use suggested homeworks for upper level classes.  I hate busywork. Why impose it on students who know the material?  Provide answers to everything but do not require those that know how to do it to do it.
7. Make tests at least somewhat  cumulative.  Finance builds on the previous topics.
8. Always give a cumulative final.  This may be the first time when the student looks at the big picture.
9. Never yell at students who come later of leave early.  I would rather have them there for 5 minutes than not at all.
10. Connect with the students.  If you are just a person there to teach, you probably won't.
11. Be careful of what you say or write, it may be the only thing the student remembers.  This point was driven home very well once when I made a large production over what was wrong, proceded to show why the theory was wrong, and then drew a large X through all of it for emphasis.  On the student evaluations that semester someone wrote that I was always getting things wrong and crossing it out.  That was the only time I actually crossed something out at the board.  Lesson: teach what is right more than you show what is wrong!
12. Never pick on students who appear unconfident.  And even then be careful.  I try to pick out someone who I can turn to when the class is down.  The student might then become the butt of a joke, or may be called on for an answer.  However, and this is crucial, let that person (and others know, you are doing it.  Do not let the mild or meek in the class fear you picking on them!
13. Have fun!  FinanceProfessors do not get paid enough not to have fun.  (indeed no one does!) Enjoy yourself in front of the class.  Joke with the students, show them you are human.

Introductory Finance

When teaching introductory finance there is always the question of audience.  On one hand the students are often not finance majors and probably do not care for the subject.  Instead of making teaching easy, this makes it more challenging. 

If you are teaching non-Finance majors, it is likely that your class will be the only exposure they have to Finance until they reach the business world.  Thus, it becomes imperative that all key concepts are covered.   In this setting the course takes on more of a survey course flavor.

Lower level finance students need more structure, so web usage should be more of a tool rather than central tenet to the class.
 

Investments

Investments is a required class at many schools.  It is looking at the financial system through the eyes of those with money to invest.,  This is important both on the personal level (as we all want to invest for our future) as well as for a complete understanding of corporate finance (how else will we know what we can sell if we do not know what investors are looking for.)

Obviously in any investments class it is crucial to stress market efficiency and the reductions of transaction costs.

One of my favorite, although most time consuming, teaching techniques in Investments class is to run a mutual fund project for the class. 

The semester-long project began with a prospectus which had to be adhered to.  The prospectus laid out fees they would charge.  Each fund was then started with the same amount of play money.  At the mid point, "quarterly" reports had to be given.  At this point I would take money out of the funds that were not doing well and put it into the funds that were doing well.

The overall grade was based on the amount of fees the fund could collect as well as how well documented trades were etc.  (obviously the higher the percentage fee, the more reluctant I was to invest.)

One problem with investment games is often that site alows trading on stale prices.  To prevent this try to use a site that has real-time quotes.  Additionally, low volumes on small stocks is problematic.  For this reason, I recommend you set a $5.00 minimum share price.

Read what others are saying about teaching investment classes.
       Robert Bruner from the UVA (one of my favorite schools!)
Teaching markets and institutions is really teaching about the Financial System.  I stress this repeatedly throughout the year.  The goals of the system (Bringing money to those who have investment opportunities), the players, and their techniques are the main points of the lass.

There is a real danger of the class becoimg too much like Money and banking.  One way to leson this danger is to leave much of the inner workings of the Federal Reserve System to Money and Banking and cover more of the Investment Banking, regulatory, derivatives, and financial innovation in this class. 

As markets and institutions are constantly changing, current events are more important in this class than others.

Students love institutional details and trivia.  Additionally market microstucture is not only a newer topic, but one that helps students understand the inner workings of financial markets.
 

Case Classes

Cases provide a means of allowing the students to gain "almost real" life experience.  For this reason case classes are generally reserved as the final or capstone course. 

There are innumberable ways to conduct a case class.  In my case classes, we have two groups presenting by playing out the roles of management and consultants, the other groups are responsible for a one page memo.

The goal of a case class should be to help students integrate information from a number of  classes as well as to gain public speaking experience and prepare for the post graduate Finance world.

Read what others are saying about case classes including Robert Bruner of UVA on teaching a case class, more on teaching a case class,  and on observing a case class being taught. 

Finally a good article (once again by Bruner) on  mentoring new faculty.  I have to meet this guy sometime.  He sounds like my type of teacher!

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Do these ideas work?

Yes. These tips and guidelines do work.  Not to toot my own horn, but I consistently get high evaluations and regularly have the median student giving me 5s (the top score) for overall effectiveness.   Being tough is never popular and there are always a few students who are upset, but these are the outliers and the majority of students do learn a great deal and appreciate the effort and the enthusiasm.

I also pride myself on not losing students.  At both Penn State and James Madsion I had many repeat customers.  (I do at SBU as well, but here the school is so small as to not offer the student as many choices, so they are stuck with me ;-)  )

I finally judge the success of the tips in their ability to make the class fun for me and for students.  Speaking for myself only, I consider this a success. 

Of course, you do not want to be a pushover, but do try the techniques.  You will be pleasantly surprised.
 

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