Category: Behavioral Finance

What Would You Do With An Extra $5,000? Compounding Your Students' Interest In A Custodial Roth IRA

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Jan 15, 2019
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NGPF Fellows, Investing, Behavioral Finance, Retirement
The following blog post comes courtesy of NGPF Fellow, Brett Shifrin, of Gould Academy in Bethel, Maine. ----- Recently, a student captured the imagination of my class. It stemmed from a comparison of Money Market Deposit Account(MMDA) and Certificate of Deposits (CD).  It was suggested that one of these accounts could be very useful for graduation gifts this spring. One of my students, Phil, asked,  “Mr. Shifrin, what would you do if you unexpectedly received $5,000?”...

Chart of the Week: Are online reviews credible?

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Jan 15, 2019
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Chart of the Week, Behavioral Finance
From Pew Research: Consumers have long relied on advice and recommendations from others before making purchasing decisions, and Americans today have access to a vast library of customer ratings and reviews that they can consult when deciding if products or services are worth their money. This survey finds that a substantial majority of the public now incorporates these customer ratings and reviews into their decision-making processes when buying something new: Fully 82% of U.S. adults say they...

Question of the Day: What is the #1 way that shoppers use their cell phones to help with in-store purchases?

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Jan 07, 2019
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Question of the Day, Purchase Decisions, Behavioral Finance
Answer: Call or text someone to discuss a purchase Questions: Have you ever used a cellphone to help with a purchase decision while inside a store?  If so, which of the four actions above have you done and how did it affect your purchase?  Do you often reach out to friends before making an online purchase?  How do you use online reviews before purchasing a product? How do you judge whether or not a review is credible and should be believed?  Here's the ready-to-go...

Question of the Day: What is the most popular New Year's resolution for 2019?

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Jan 06, 2019
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Question of the Day, Savings, Behavioral Finance
Answer: Exercise more Here are the top five: Questions: Do you think that making New Year's resolutions are a good idea? Explain.  Do you have any New Year's resolutions? If so, what are they? If not, why not?  What are some strategies that you can use to make resolutions stick? Have you had success with these in the past?  Here's the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (from the Denver Channel): ...

FinCap Friday: Get S.M.A.R.T

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Jan 03, 2019
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FinCap Fridays, Behavioral Finance
It's a brand new year and we've all got plenty of goals we want to work towards! It's a time of hope and new beginning, but what happens when you aren't so sure that you're on track to achieve your goals? Check out the first FinCap Friday of 2019 to find out the secret to making sure your goals and resolutions are accomplished!   Did you know that we recently added a "no-tech" version of FinCap Friday where we embedded the 5 questions right into the slide deck so no need to have your...

Best of 2018...PBS Two Cents Personal Finance Videos

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Jan 03, 2019
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Video Resource, Budgeting, Behavioral Finance, Financial Scams, Mortgages, Paying for College
PBS Two Cents made a big splash on the scene in 2018. Philip Olson and Julia Lorenz-Olson create engaging videos that do a great job explaining personal finance concepts in ways that your students will understand. We added several of their videos to our video library and you can also hear their story on the NGPF Podcast.  I reached out to Philip today and he was kind enough to share the "top 5" videos he and Julia produced in 2018 (based on Facebook and YouTube views). Beth has also created...

Best of 2018...Most Engaging Blog Posts

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Jan 01, 2019
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Personal Finance, Credit Cards, Cryptocurrencies, Behavioral Finance, Policy, Paying for College
Happy New Year! Continuing the "Best of 2018" theme, I wanted to share with you the blog posts that engaged readers the most in 2018. To measure engagement I focused on two factors. I looked for pages that attracted hundreds of visitors and had the highest average time spent per page. Time spent on the page was a good indication that educators/students read the blog post in its entirety and engaged in the mini-activity described in it. For those new to NGPF, several of the posts below are...

Best Of 2018...NGPF Video Library

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Dec 27, 2018
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Behavioral Finance, Video Resource, Compound Interest, Credit Scores, Paying for College, Budgeting
Looking for videos to supplement your existing lessons? Here's a few of teacher favorites as measured by click data in our Video Library. Drumroll please...top 10 picks for 2018: 10. The Pain of Paying from Dan Ariely of Duke University 9. Fighting the Financial Pitfalls of the Supermarket from PBS Digital's Two Cents 8. What's A Credit Score? from Kal Penn Explains 7.Why We Crave What's Cool from PBS NewsHour 6. Can I Afford It? from CNBC 5. Battle Between Your Present and Future Self from...

NGPF Podcast: Tim Talks To Fidelity's Kelly Lannan About The 2018 Millennial Money Survey

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Dec 21, 2018
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Podcasts, Investing, Research, Behavioral Finance
 Who knew that Kelly Lannan, collegiate musician and ice hockey captain extraordinaire, would find her calling in financial services? Kelly shares that a career in finance wasn't on her mind as she collected her diploma on graduation day. Yet, today as the Director of Young Investors at Fidelity, Kelly engages with college students and inspires them to plan for their futures today. Find out the myths that her team busted in their Millennial Money Study (there are several!). Listen...

Question of the Day: What are the items that the highest percentage of people prefer to purchase online rather than in a physical store?

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Dec 18, 2018
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Question of the Day, Budgeting, Behavioral Finance
Answer: Books, music, movies and video games From Statista:  Questions: Which of the items in the chart above do you prefer to purchase online vs. in-store? Why do you like to purchase some things in a store instead of online?  Why do you think that only 1/4 of people prefer to buy their groceries online rather than in a store? How do think these percentages will change in 5 years? Why?  Here's the ready-to-go slides for this Question of the Day that you can use in...

Question of the Day: What financial habit do almost 2 out of 3 senior citizens wish they had done more of when they were younger?

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Dec 11, 2018
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Question of the Day, Savings, Research, Behavioral Finance
Answer: Save money Questions: Why do you think so many seniors wished they had saved more? Without savings, what income does a retired senior citizen have to live on?  Are you a good saver? If not, do you have any ideas that can help you become one?  Here's the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (National Bureau of Economic Research): We asked persons aged 60 to 79 whether, if they were given the chance to...

Question of the Day: What percentage of Americans have NOT shopped around for auto insurance for two years or more?

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Dec 09, 2018
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Question of the Day, Insurance, Research, Behavioral Finance
Answer: 48% Questions: What types of items do you shop around for before making the purchase decision? What types of items do you NOT shop around for before purchasing ? Why do you choose not to find other prices for these items? What are ways that you can compare prices for auto insurance policies?  If you were told that you could save $400 a year if you shopped around for auto insurance, would you do it?  Here's the ready-to-go slides for this Question of the Day that...

What I'm Reading This Weekend (December 7-9) V2

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Dec 08, 2018
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Personal Finance, Behavioral Finance, Stocks, Current Events
I had so much fun skimming through my favorite bloggers and curators that I thought I would provide a bonus edition of "what I'm reading..." Hat tip to the Tadas at Abnormal Returns and Barry at Big Picture Blog. They make curating these awesome articles on Friday soooooo much easier. Thanks! Here's what caught my attention this week:  State of Financial Education Bureau of Consumer Financial Protection (the agency formerly know as the CFPB) releases their Annual Report on...

Whipsaw Risk and Investing in Stocks

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Nov 29, 2018
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Investing, Interactive, Index Funds, Behavioral Finance
How do you think recent investors in GE are feeling about their decision? Would you hold on after a monthly drop of 30% in the stock price?  Interesting read from the Capital Speculator here about how investors can be influenced to act impulsively in the early years (I think it could be days) of a new investment. As someone who can speak from experience, there is nothing worse than seeing a recent investment go negative soon after your purchase. The bubble thoughts that start floating...

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...