Category: Behavioral Finance

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...

Chart of the Week: Credit Profiles for 18-22 Year Olds

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Sep 12, 2018
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Chart of the Week, Credit Cards, Student Loans, Behavioral Finance
I love this chart from a recent Wall Street Journal article because it captures the state of credit for young people just getting started in building their credit history:    Questions: What credit type is most prevalent among 18-22 year olds? 23-29 year olds?  Which type of loan has the highest balance for 18-22 year olds? 23-29 year olds?  At what age do you think you will have the following: Credit card Retail store card Auto loan Student loan Which type of...

Question of the Day: How much do millennials spend annually on coffee?

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Sep 09, 2018
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Budgeting, Behavioral Finance, Retirement, Question of the Day, Investing
Answer: $2,008 Thanks to Lynn Fischer of Kimberly High School (WI) for recommending this Question of the Day!  Questions: Assuming that they buy a coffee every day of the year (365 days in a year), what would be the daily cost of a cup of coffee?  What are ways that millennials could reduce their cost of coffee without going "cold turkey" and not drinking it anymore?  Are there things that you buy on a daily basis that would add up to hundreds of dollars spent on an annual basis?...

Activity idea: The Effect of Peer Pressure on Your College Finances

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Sep 05, 2018
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Behavioral Finance, Activities, Budgeting, Parent Conversations
During the college application process, students are told over and over again by family members and teachers that there are clear steps to follow: 1. Maintain a competitive GPA2. Take plenty of AP courses3. Score well on the SAT4. Partake in lots of extracurriculars It’s easy to see why so many students obsess over GPA, sign up for SAT prep courses, and take on extra AP classes during their junior and senior year. Perhaps it’s because money is such a taboo that students are rarely...

Question: What is #1 reason that people give for paying their credit card bill late?

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Sep 05, 2018
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Question of the Day, Credit Cards, Behavioral Finance
Answer: I forgot to make the payment Questions: Why do you think that so many people forget to pay their credit card bill?  What do you think are some of the consequences of not paying your bill on time?  What are steps that you can take so you are not one of those "forgetful" people who don't pay their bills on time?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (NerdWallet):...

Question of the Day: Money aside, what makes people feel wealthy?

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Aug 20, 2018
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Question of the Day, Behavioral Finance, Research
Answer: Top 3 things that make people feel wealthy: spending time with family, having time to oneself, owning a home. Questions: What makes you feel wealthy besides money? What do the #1 and #2 things that make people feel wealthy have in common? Given the opportunity to earn more money while giving up more of your free time, would you take it?  Do you think the answer to this question changes as you get older? Explain your answer. Click here for the ready-to-go slides for...

What We're Reading This Weekend (August 18-19)

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Aug 17, 2018
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Behavioral Finance, Investing, Checking Accounts, Chart of the Week, Budgeting, Paying for College
Quote of the week: In today’s world, information is cheap; meaning is expensive. [Bob Seawright] On the issue of sustainability front, Starbucks looking to save 6 billion cups from the waste stream. Their current to-go cup is difficult to recycle (audio from PRI). Yes, at some point, all good things must come to an end and we will have a recession again. Vanguard attaches some probabilities to it coming in 2020 in this NY Times piece.  Ever wonder why your students (and maybe you...

Question of the Day: What is the most popular financial app on the iPhone?

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Aug 13, 2018
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Checking Accounts, Behavioral Finance, Current Events, Payment Types, Research, Question of the Day
Answer: Cash Here's the leaderboard as of 8/2/18 (from SimilarWeb): Questions:  Do you have financial apps on your phone? If so, which do you use most often? If not, why not?  What are the pros of cons of using your mobile phone to manage your bank account? Here's the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (from Quartz): As more payments take place electronically and bank branches slowly disappear, your...

Digging Deeper: Tying the Knot--Millennials Tie Up the Financials First

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Aug 06, 2018
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Personal Finance, Budgeting, Behavioral Finance, Podcasts
A recent New York Times article went into depth as to why millennials are postponing marriage. The median age for marriage is now at 29 for men and 27.4 for women, up from 23 and 20.8 in 1970.  For those interviewed for the article, financial stability, being established in careers, and enjoying a variety of life experiences were important milestones to reach before marrying.  “People are not postponing marriage because they care about marriage less, but because they care about...

Enjoy this over the weekend...

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Aug 03, 2018
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Behavioral Finance
I would put this in the category of more general interest than personal finance and if you wonder what the internet was thinking in 2015... Fun interactive infographic captures the media stories that were on people's minds based on their popularity on social media over a five year period (2010-15).  Since this is three years old, it's interesting to see how some of the issues raised in these popular articles remain front and center today. This would include concerns about cell phone...

3 Graphs: How Risky are Stocks, Bonds and Cash?

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Aug 02, 2018
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Investing, Stocks, Behavioral Finance, Research, Math, Chart of the Week
Hat tip to the Wealth of Common Sense blog for updating their performance charts which help demonstrate a key concept in investing: risk. Risk is one of those nebulous concepts for teens who have never experienced a severe market correction while holding stocks. These charts help elucidate risk from a mathematical perspective by plotting returns for the three basic asset classes: cash, bonds and stocks. By using the same scale for each, it becomes more apparent which is the riskiest asset. ...

Question: What Family Money Lessons Do You Still Hold On To?

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Jul 30, 2018
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Personal Finance, Writing assignment, Behavioral Finance
What money lessons do you recall learning in your household? I  came across this Morningstar article which made me think about one money lesson I inherited that I have not been able to toss aside. First, here's what got the author of the Morningstar piece thinking about this:  That conversation got me thinking about the various bits of "received wisdom" that most of us are carrying around about money. Could some of these "family money lessons"--beliefs we hold true we because we...