Category: Behavioral Finance

Reading List for August 27-29

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Aug 27, 2021
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Current Events, Economics, Cryptocurrencies, Budgeting, Behavioral Finance, Checking Accounts
Banking Curious about how banks are doing with overdraft fees? Overdraft fees dropped during the pandemic in 2020, but have jumped back up 40% over a year ago. (BankingDive).   Budgeting/Behavioral Finance Ally Bank survey shows about half of adults are not talking discussing finances with their partner and launched a program to try to address this. PRNewsWire Tik-Tok partners with Shopify to add in-app purchase link. Sounds like a dangerous development for users susceptible to FOMO and...

Question of the Day: What percent of homebuyers in late 2020 made an offer on a house they had not seen in person?

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Aug 22, 2021
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Question of the Day, Behavioral Finance
Answer: 63% Questions: Do you think these homebuyers are crazy to make an offer on a house they have not stepped foot in? Why or why not? What you be comfortable renting an apartment without seeing it in person? buying a car? attending a college?  If you could not see a house but you wanted to make an offer, what sources of information would make you more comfortable with the decision?  Here's the ready-to-go slides for this Question of the Day that you can use in your classroom....

Question of the Day: What percentage of people make purchases due to FOMO?

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Aug 16, 2021
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Question of the Day, Behavioral Finance
Answer: 60% of people make purchases because of FOMO, mostly within 24 hours. Questions: What is FOMO? How would you describe it? Have you ever experienced FOMO? How has it ever impacted your spending behavior? How can you avoid overspending due to social factors like FOMO? Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.   Behind the numbers (Trust Pulse):   What Is FOMO?FOMO, or fear of missing out, is the feeling of anxiety that...

Behavioral Economics Interactive: Decision Lab

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Aug 11, 2021
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Interactive, Behavioral Finance
Think of the Decision Lab as an interactive bias dictionary, with all of the practical information you need to help your students understand: What the bias is and where it most frequently occurs How the bias affects folks How to avoid the bias  Examples of the bias This interactive bias dictionary is the perfect complement to our comprehensive Behavioral Economics unit. If you have yet to have a chance to review the unit, start by checking these lessons and activities out, all of which...

Sketchplanations: Behavioral Economics

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Aug 09, 2021
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Behavioral Finance
We just released a NEW! full Behavioral Finance unit with seven engaging lessons full of hands-on activities. While building out the lessons, we were particularly impressed with this collection of visuals, designed by Sketchplanations. These would be perfect complements to our Behavioral Economics lesson: I Saw it On Social Media. ...

Curriculum Updates: Financial Pitfalls is Moving

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Jul 13, 2021
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New Products, Behavioral Finance, Financial Scams
You may have seen our latest email campaign announcing some exciting new curriculum we're working on, but we also wanted to give you a heads up about another change that is happening this summer:    The Financial Pitfalls Unit is moving!    WHAT does this mean?  We'll be moving specific lessons from the Financial Pitfalls Unit (currently Unit 8 in the Full Year Course) to other units in the course, such as Types of Credit, Managing Credit, Budgeting, etc. Any...

INTERACTIVE: Your Financial Personality Type

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Jun 16, 2021
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Behavioral Finance, Budgeting, Quizzes, Interactive
This straightforward interactive is easy for students to use and can help them understand their own financial personality and some customized behavior strategies. I took the quiz myself and apparently, I am a Fitbit Financier, which means: “You check your online bank account and track your spending as often as someone training for an extreme sporting event measures their calorie intake, resting heart rate and sleep quality. As well as obsessing over credit card points, you probably like...

Interactive: Dark Patterns At Work

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May 26, 2021
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Interactive, Behavioral Finance
Hat tip to Jenny Nicholson for sharing this game, Terms and Conditions. Do you ever feel like you are being manipulated on websites? Unfortunately, dark patterns are all too prevalent on websites and apps. What's a Dark Pattern?  As defined by expert Harry Brignull, dark patterns "are tricks used in websites and apps that make you do things that you didn't mean to, like buying or signing up for something." The first step in not succumbing to these dark patterns is awareness which is why...

Question of the Day: What do 98% of consumers do prior to buying a product?

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May 24, 2021
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Question of the Day, Behavioral Finance
Answer: Read online reviews Questions: Why do you think that so many people want to look at reviews before making a purchase?  Do you check online reviews prior to purchasing products? How do you know if reviews are credible?  Do you vary the amount of time you read reviews based on the cost of the item that you are looking to purchase?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers...

NGPF Podcast: Bill Bernstein on his latest book, The Delusions of Crowds

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May 07, 2021
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Podcasts, Investing, Behavioral Finance
GameStop, cryptocurrencies, NFTs...and the list goes on of examples of speculation in today's financial markets. Who better to weigh in on these and other examples of financial speculation than Bill Bernstein. The full title of his new book, The Delusions Of Crowds: Why People Go Mad in Groups, captures the essence of our conversation. In this podcast, Bill discusses the power of narrative to fuel "bubbly" behavior and why social media (think sub-reddit groups like...

Question of the Day: How long does the average user spend on TikTok a day?

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Apr 05, 2021
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Question of the Day, Behavioral Finance
Answer: Over 45 minutes a day! [21.5 hours a month!] Questions: How much time do you spend on TikTok? What do you like about it? Has TikTok ever impacted your financial knowledge or have your purchasing decisions been influenced? How? As the platform continues to grow, how are companies using TikTok to promote their products? Why is this important? Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.   Behind the numbers (Sprout...

Question of the Day: What percent of homebuyers in Nov/Dec 2020 made an offer on a house they hadn't seen in person?

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Feb 24, 2021
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Budgeting, Mortgages, Purchase Decisions, Behavioral Finance
Answer: 63% Questions:   Would you consider buying a house that you couldn’t see in person?  What do you think home buyers might miss if they rely strictly on online sources of information? Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (NY Times):  Sixty-three percent of buyers who used Redfin in November and December went on to make an offer on a home they hadn’t seen in...

Question of the Day (REPEAT): A recent research study found that _________ of stock day traders made money over a 12 month period.

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Feb 02, 2021
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Question of the Day, Investing, Research, Behavioral Finance
Given the events that have transpired over the past week with GameStop, this QoD provides great opportunity to discuss the perils of day trading.  Answer: 3% Questions: Why is day trading so popular despite the difficulty of making money consistently? Why do you think it's so difficult to make money day trading?   Do you know anyone who has actively traded stocks? Were they successful for more than a few days? What's the difference between investing and speculating?  ...

Question of the Day: What was #1 response from Gen Zers when invited to an activity they could not afford?

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Jan 26, 2021
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Question of the Day, Behavioral Finance
Answer:  Questions:  What do you do in those situations when invited to an event you can’t afford? Does your answer vary based on the situation? What would be the factors that play into your decision? How do you think your parents would answer this question differently? 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): Most of us have had to turn down activities...

Reading List for January 22-24

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Jan 22, 2021
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Investing, Economics, Behavioral Finance, Retirement
Economics New unemployment claims up at 900,000 again last week. (DOL) US Trade Deficit reaches a 14-year high. (AP News) Existing home sales hit their highest level since 2006 in December. (Who is nervous?) (Yahoo Finance) Get to know Janet Yellen, whose nomination to Treasury Secretary should be confirmed as early as today. (Yahoo Finance)   Investing This Of Dollars and Data article wraps up investing in the year 2020 with ten takeaways. Tik Tok may be the rage right now, but it is...