Chess enhances student's skills at logical problem solving, looking ahead, reasoning and memory, and also creative thinking, using both halves of their brain. Chess in a school environment enhances students' social skills as well, teaching them the values of camaraderie and discipline. It hopefully fosters these skills for the students' use throughout their lifetime.
Here is a .pdf link to a study of the benefit of chess in education:
http://www.gardinerchess.com/publicationsbenefits/ciers.pdf
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