Category: Behavioral Finance

Reading List for November 17-18

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Nov 16, 2018
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Personal Finance, Behavioral Finance, Career, Paying for College, Investing
Personal Finance-credit and borrowing Don’t get carried away with Black Friday shopping and fall for those store credit cards. They are NOT a good deal. (Washington Post) Will mid-term election results have any impact on student loans? (Forbes) We are always warning students about borrowing too much for college, but here are two pieces on a paper coming out in the journal Education Next that suggests some borrowing may help some students succeed. (WSJ and NPR) Computer algorithms are less...

Question of the Day: Over a recent 15 year period, what percent of professionals investing in large companies "beat the market?"

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Nov 12, 2018
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Investing, Behavioral Finance, Index Funds, Mutual Funds
Answer: Only 8% (All Large Cap Funds vs. the benchmark S&P 500) Questions: Why do you think professionals struggle to "beat the market?" Why do you think investors continue to invest their money with professionals despite their record of not being able to "beat the market?" Your friend says "you are better off investing with professionals instead of buying a simple index fund (e.g., S&P 500) that matches the market return." Do you agree or disagree based on the data above?  Click...

Question of the Day: What percent of teens say brand is most important when making a purchase?

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Nov 11, 2018
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Question of the Day, Behavioral Finance, Budgeting, Research, Current Events
Answer: 45% Here's a video that explores the brain science behind why we love brands (from NGPF Video Library)  Questions: With what purchases do brands matter most to you? All purchases, only some or none at all?  What are your favorite brands? Can you explain what you think these brands say about you?  Why do you think that teens, in particular, tend to have the strongest affinity to brands?  Optional: What are two takeaways you got from watching the video?  Click...

Interactive Monday: How does life expectancy vary by neighborhood?

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Nov 11, 2018
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Research, Retirement, Behavioral Finance, Interactive
The Robert Wood Johnson Foundation has an interactive that allows a user to type in their home address (info not stored by the site) and find out their life expectancy. I typed in the address for my hometown in New Jersey where I lived the first 22 years of my life and here's what I found: Here's how I thought you might use this in your classroom: Have students type in their home address including zip code. How does the life expectancy of "My area" compare to the county, the state and the...

Question of the Day: A picture of a pair of eyes was placed above a donation box. Did donations increase or decrease?

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Nov 07, 2018
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Question of the Day, Behavioral Finance, Generosity
Answer: Increased by 80% Questions: What do you think are reasons that people donate to causes like a children’s museum? Why do you think that donations rose when a pair of eyes were placed about the donation box? Have you ever done something with money that you normally would not have done because someone was watching (e.g., leave a larger tip, donate to a charity) Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom....

NGPF Podcast: Tim Talks To Money Coach Whitney Hansen

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Nov 02, 2018
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Podcasts, Personal Finance, Behavioral Finance
  Since graduating from the school of hard knocks, Whitney Hansen turned her hobby into her full-time “jobby.” After paying off $33,000 in student debt in just one year, she sought to help others achieve their financial goals by relearning how to be fiscally responsible by living within their means. Whitney will take you through her entrepreneurial journey and provide insights on how she is able to coach her clients to change their financial behaviors for the better. Listen to...

Calling All Change Makers: NGPF 2019 Summit

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Oct 24, 2018
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Teaching Strategies, Advocacy, Behavioral Finance, Professional Development, Schools In News
Are you passionate about increasing access to personal finance education? Motivated to affect change in your class, school, district or community? Apply for NGPF's Summit today!   Who You Are: You understand the importance and value of personal finance education. You acknowledge that students must learn to manage money, create budgets, and build good credit habits to become financially secure adults in the 'real world'. You are committed to improving financial education in your...

Question of the Day: Amazon is called the "Everything Store." How many products do they carry?

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Oct 22, 2018
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Current Events, Budgeting, Behavioral Finance
Answer: 562 million! Questions: With so many items in their "store," do you find it easy or difficult to find what you are looking for on their website?  What can Amazon do that a traditional brick and mortar store cannot do?  A typical Costco store only carries about 4,000 items and is succeeding based on consumer demand. How do you think they can compete against a company like Amazon?  Here's the ready-to-go slides for this Question of the Day that you can use in...

FinCap Friday: From Catalogs to Clicks

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Oct 18, 2018
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FinCap Fridays, Current Events, Behavioral Finance, Budgeting
This week's FinCap Friday tackles the changing retail environment. The big news of the week involves what was once one of America's largest retailers...yes before Wal-Mart and before Amazon this was the company where everyone shopped. Yanely leaves your students with some shopping tips in this new digital world. Without further adieu...From Catalogs to Clicks: -------------- This is the 10th in our FinCap Friday series, check out the others in our FinCap Friday library. ...

Financial Education According to Danielle: Store Credit and How Retailers Trick You to Sign Up

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Oct 18, 2018
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Budgeting, Current Events, Behavioral Finance
Seemingly every major retail chain is offering a branded credit card to their customers.  You’ve heard it before - “would you like to sign up for our credit card and get 15% off of today’s purchase?” What’s a good deal for the store may not be a good deal for you. Watch out for these retail tricks and think twice before buying something you don’t need on store credit - you may end up getting more than you bargained for. “You can get X% off your...

Convenient or Dangerous?: The “One-Click Wonders” of Online Retail

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Oct 11, 2018
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Budgeting, Current Events, Behavioral Finance
Online retailers are finding shorter and simpler ways to reach shoppers’ hearts and wallets.  By reducing the number of steps required to place an order, Amazon, Domino’s, and others are hoping to boost their sales by making your life easier.  The ultimate consumer convenience, these new “one-click wonders,” could be dangerous to the financial health of those with weak impulse control.   One such “one-click wonder” is the Amazon Dash...

Question of the Day: What is the median grade that 13-17 year olds give themselves for their money management skills?

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Sep 24, 2018
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Question of the Day, Behavioral Finance, Research, Personal Finance
Answer: B Questions: What grade would you give yourself for your money management skills? Explain your answer and the criteria you used to grade yourself.  What are some areas that you think you can improve? What steps can you take to make this happen? Do you think most people are under or overconfident when it comes to their financial skills? Explain.  Here's the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the Numbers...

NGPF Podcast: Tim Talks to Author and Blogger Jonathan Clements

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Sep 21, 2018
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Podcasts, Index Funds, Investing, Behavioral Finance
Jonathan Clements is no stranger to the NGPF podcast (here and here), and he’s back to introduce his newest book, From Here to Financial Happiness: Enrich Your Life in Just 77 Days. This book elicits active participation from the reader from day one of their financial journey until the last. Readers will answer 31 questions in their quest for financial happiness including such toughies as... If money were no object, what would you change about your life AND When was the last time you...

Question of the Day: What percent of 18-34 year olds are investing in the stock market?

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Sep 16, 2018
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Question of the Day, Investing, Stocks, Behavioral Finance
Answer: 37% Questions: When do you think you will start investing in the stock market? Explain your answer.  Why do you think that the percentage of young people investing in stocks has dropped so much since 2001-2002? Why do you think a higher percentage of those over 35 years old invest in the market compared to those under 35? Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (Gallup Poll): A...

Question of the Day: What is the #1 long-term financial goal for young people (ages 16-25)?

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Sep 12, 2018
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Question of the Day, Current Events, Research, Behavioral Finance
Answer: Owning a home. Questions: What is your #1 financial goal?  Do you think the financial goals of a 16 year old will differ from those for a 25 year old? Explain.  Do you believe that goal-setting is an effective strategy in achieving what you want out of life? What goals have you set in the last 12 months and what have been the results?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the...