Business Classes Can Be Fun: Teaching Ponzi Schemes

Abstract

This paper provides specific suggestions for conducting a Ponzi scheme during a class session with students as the victims. It is suggested that by conducting such an exercise the students will (1) better understand Ponzi schemes, (2) internalize the concept that something that sounds too good to be true probably is, (3) gain a lifelong skepticism of financial scams, (4) realize how “get-rich-quick” schemes are contrary to God’s teachings, and (5) have fun.