Mar 12, 2017
Question of the Day, Behavioral Finance, Research, Advertising, Current Events
What does the word “brand” mean to you?
How does a company “build a brand?”
How would you think about valuing a brand?
According to BrandFinance: “it’s an internationally recognized term that represents “a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos and designs, or a combination of these, intended to identify goods, services or entities, or a combination of these, creating...
Feb 14, 2017
Credit Reports, Credit Scores, Advertising, Current Events
I saw this paid ad during a Google Search this evening:
Hmmm…so what caught my eye? The “Purchase 3 Bureau Reports.” Many of you are probably wondering “Why purchase these reports when you can get credit reports from each of the three bureaus for FREE at annualcreditreport.com? ” and “Why would you want to buy them at the same time?” A best practice is to space out your FREE credit reports from the three credit bureaus every four months so you can be...
Jan 15, 2017
Advertising, Credit Scores, Research, Current Events, Credit Reports
It’s a new year which makes it a good time to review your credit report. I went to annualcreditreport.com, answered a few questions to verify my identity and proceeded to my credit report. As I completed my review, I couldn’t help but notice the offer about getting my credit score (can you say cross-selling opportunity?). When I clicked on the button…
What’s the catch?
Well the $4.95 offer comes with an asterisk and then this fine print “$4.95 for your first...
Jan 12, 2017
Advertising, Behavioral Finance, Research, WebQuest, Teaching Strategies, Current Events
Those who use NGPF resources know that we place a premium on teaching students how to navigate the web, discern credible sources of information and do the research required to make sound financial decisions. Occasionally we get pushback that our content should be “commercial free” and that linking to an online article that has ads anywhere on the page is “commercial” and students should not be subjected such distraction. Newsflash: The Internet has gone commercial. All...
Dec 20, 2016
Advertising, Question of the Day, Research, Current Events, Chart of the Week
Hat tip to Visual Capitalist which posted this MBA@UNC infographic (click the link to see the full infographic):
Questions for your students:
Are you surprised about how much information is available about you?
Which of these categories are you most comfortable sharing your information? Least comfortable?
Pick two of these categories and brainstorm about ways that companies could use this information?
How do you think this information is collected? What sources are they extracting this...
Oct 02, 2016
Activities, Activity, Career, Investing, Mutual Funds, Financial Literacy, Advertising, Purchase Decisions, Current Events
Here’s an activity idea for your Instagram-obsessed students. Have them take pictures of personal finance that they notice in their everyday lives. Here are a few I came across this weekend while wandering around the Bay Area:
In the new world of work, many choose to have a “side hustle (here’s the NGPF podcast with Ash Cash who popularized the term and a recent post on the topic),” an additional source of income. Here’s a sign I saw at a Re-Maker faire in San...
Jul 25, 2016
Activity, Credit Cards, Payment Types, New Products, Advertising, Video Resource, Activities
Thanks to Sean McQuay of NerdWallet for a great conversation yesterday about credit cards. Look for it posted to NGPF Podcasts next week. He was discussing one of the cards he reviews which gave me an idea for a mini-activity in which students think about how best to redeem credit card rewards. The card in question, the Citi DoubleCash Card, has the following terms:
Discover Citi’s best cash back credit card. The Citi Double Cash card is a cash back card that rewards you with cash back...
Jul 05, 2016
Cartoons, Mortgages, Behavioral Finance, Teaching Strategies, Advertising, Purchase Decisions, Current Events
Ran across a few cartoons that you might bring some levity to the classroom or amplify a key point.
Why did I select it?
Too often people think just because the bank lends you money, you can afford to take it. Since housing is the largest purchase most people make in their lifetimes, buying too much house has long term implications
Use in conjunction with NGPF Lesson on Mortgages
Why did I select it?
Most people do not know that they can bargain to reduce...
Apr 28, 2016
Behavioral Finance, Question of the Day, Checking Accounts, Debit Cards, Payment Types, Advertising, Current Events
Ask your students to solve the mystery by guessing what they would expect to see in the asterisk section about the conditions that need to be met to earn the 5%. Remind them that the average checking account today earns about 0.05%.
Here’s the fine print for your students to decipher:
Limited to balances up to $5,000 [Editor’s note: this caps their cost at $250 per year per account, which seems reasonable as a cost of customer acquisition)
15 or more debit card...
Feb 15, 2016
Behavioral Finance, Question of the Day, Advertising, Purchase Decisions, Current Events, Article
If you ever wondered whether those sale items were ever offered at the “original ticket prices” noted above, well…you might want to read this Buzzfeed article (good study in consumer behavior):
There are few things as thrilling as a 60% off sign, particularly when it’s hanging above something you actually want to buy. But the tactics stores use to give you that heady “I just got a bargain!” rush are under siege.
Chains from Kohl’s to Nordstrom Rack have been fighting...
Dec 11, 2015
Activity, Behavioral Finance, Research, Credit Cards, Mutual Funds, Advertising, Purchase Decisions, Insurance, Video Resource
I saw this US News and World Report article titled “7 Tricks Advertisers Use to Make You Spend Money” and immediately thought it would be fun to pair with a series of advertisements. The assignment is simple:
Students review the advertisements (see below) and indicate which of the 7 tricks the advertiser uses (several of the ads may use multiple tricks):
Appealing to greed or other vices
Exciting our emotions
Suggesting that everyone else is doing it
Using attractive people in...
Dec 07, 2015
Behavioral Finance, Research, Credit Cards, Advertising
We have all seen these offers (what in industry parlance are known as deferred interest promotional financing). These amazing offers where you can buy a big ticket item now (TVs, appliances, furniture) and not have to make payments for a period of time. How cool is that? Immediate gratification in return for future pain. Of course they also come with the fine print, which is often smaller than you see on the image above. The dirty secret (it’s not really a secret; it’s just not...
Oct 30, 2015
Activity, Payment Types, Teaching Strategies, Advertising, Purchase Decisions, Writing assignment
Got this idea for a student writing assignment from a recent Forbes column in which people open their wallets and describe the last ten things they purchased while also providing the payment type, some context and the motivation for the purchase.
Here is an excerpt from a 19 year old college student:
1. Breakfast bagel sandwich: $7.78
Although I have a meal plan at my university, I occasionally treat myself to food from outside establishments for breakfast. On this day, I woke up...
Aug 27, 2015
Behavioral Finance, Budgeting, Credit Cards, Student Loans, Advertising, Current Events, Audio Resource, Podcasts
Thank you to Dottie Vollmer, a Peer Financial Educator, for sharing her expertise with our educator community in this recent podcast. Dottie counsels college students as a member of the MoneySmarts team at Indiana University.
In this podcast, she shares what she has learned in her work with college students on budgeting, student loans and credit cards and answers such questions as:
What are the biggest misconceptions about money that college students have?
What budget items do college...
Jul 13, 2015
Behavioral Finance, Question of the Day, Investing, Mutual Funds, Advertising, Current Events, Article
One of the top NY Times articles columns this weekend came from a Harvard economics professor and was titled “Why Investing Is So Complicated And How To Make It Simpler.” This will be great article for your students to read to become more familiar with investing terminology and understand why so many are flustered by the thought of making investment choices. As the professor notes at the conclusion of the article, throwing one’s hands up and not doing anything isn’t a...