Category: Behavioral Finance

Weekend reading list (Nov.15-17)

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Nov 15, 2019
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Personal Finance, Investing, Credit Cards, Generosity, Behavioral Finance
Financial education Inspiring story of Chloe McKenzie, founder of BlackFem, and her mission to bring finance education into disadvantaged communities (OZY) Economics Never thought I would see this in my lifetime...the U.S. is now a net exporter of crude oil (Axios)  Story-telling I'm a huge fan of Morgan Housel (here's our podcast) and his weekly releases on the Collaborative Fund blog. His latest is about storytelling and he crafts five story lines that he says running through...

Question: How much more time do adults spend watching TV vs. managing household finances in a typical month?

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Nov 13, 2019
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Question of the Day, Budgeting, Behavioral Finance
Answer: About 70 times more time is spent watching TV (85 hours/month on TV compared to an hour and 12 minutes on finances) Questions: What are three reasons why adults spend so little time on managing finances?  How do you think that technology has impacted the time required to manage personal finance? Explain.  What are examples of activities that adults do to manage their finances?  How important do you think it is to spend time on financial management?  Here's the...

Video: Three Brain Games Videos Demonstrate Why We Fall for Scams

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Nov 10, 2019
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Financial Scams, Video Resource, Behavioral Finance
Here's a few Brain Games videos that I watched over the weekend that can help students uncover scams: Pigeon Drop Con Artist Handbook The Scam Illusion Questions Have you ever fallen for a scam? What techniques do these scam artists use in these videos to con people?  Which of the three scams do you think you would most likely have fallen for?  What lessons can you learn from these videos so that you are not conned?  -------------------- Create A Financial Scam...

Activity idea: What makes a "perfect" marketing video?

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Oct 30, 2019
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Advertising, Behavioral Finance, Video Resource
For this activity idea, your students take on the role of marketing experts. After gaining some knowledge about the elements of a "perfect" marketing video, they watch 3 videos and gauge their effectiveness.  Here's the idea: Review this infographic and identify the six elements of a "perfect" marketing video.  Watch these three videos looking for each of the six elements (here's a graphical organizer for students to jot down their impressions) Video #1 Video #2 Video #3  ...

Chart of the Week: Social Media and Halloween Spending

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Oct 29, 2019
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Chart of the Week, Purchase Decisions, Behavioral Finance
Courtesy of National Retail Federation: Questions: Write a one sentence summary for this chart. Finish this sentence: Since 2015, social media has had a ________________ impact on Halloween purchases.  Which social media platform has seen the largest increase since 2015? Do you think this will continue?  The data in the chart came from surveying adults. Complete a chart like this for 2019 based on responses from classmates.  How did social media influence any purchases you may...

QoD: Do more couples in a relationship manage their finances jointly OR separately from their partner?

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Oct 22, 2019
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Question of the Day, Behavioral Finance
Answer: Jointly (78%) vs. Separately (22%)   Questions: Which do you think will make more sense for you in future relationships: managing financial accounts together as a couple or separately? Explain. For those couples who manage their money jointly, what do you think can be causes of stress?  For those who manage their money separately, what can be sources of tension?  Do you think that it's important for a couple to have similar attitudes about money? Why or why not? ...

QoD: To tip or not to tip: What percent of people tip at coffee shops?

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Oct 13, 2019
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Question of the Day, Budgeting, Research, Behavioral Finance
I love this question because of the prevalence of these touch screens that get turned toward the customer at time of purchase. Do you feel that nudge...? Answer: 48.5% (median tip is 17% or about $1 tip on a $5 latte) Questions: Do you leave a tip at your local coffee shop/cafe? If so, how much do you normally tip?  Is your tipping behavior based on the service you receive or do you have a consistent policy? Does the presence of a touch screen where the people behind you in line can see...

Reading List for October 11-13

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Oct 11, 2019
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Behavioral Finance, Cryptocurrencies, Investing, Financial Scams, Career, Retirement
Behavioral Finance An interesting dive into gender and money: The Myth of the Frivolous Female Spender (NYT) FinTech A longer read from Knowledge@Wharton discussing how FinTech may be helping the underbanked and unbanked. The risk is that many of these services fly under any regulatory radar.   Crypto-currencies Mark Zuckerberg will face Congress to talk about Facebook’s proposed crypto-currency Libra. He will face a tough crowd, (Axios) and now several backers (Visa,...

Chart of the Week: New Car Loans

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Oct 08, 2019
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Chart of the Week, Purchase Decisions, Budgeting, Behavioral Finance
Summary: This chart shows the percentage of new car loans and the term of their loans (in months).  Questions: How would you summarize the trend in the length of new car loans over the past decade? Increasing or decreasing? Which loan term has seen the sharpest increase in the past decade?  What is the relationship between the term of the loan and the amount of the monthly payment? The longer the loan term, the _______ the monthly payment.  The _________ the loan term, the...

Activity Idea: Psychology of Investing

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Oct 03, 2019
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Investing, Activities, Behavioral Finance
Here's an activity I did with my class a few years back that helped simulate the psychological aspects of investing.  It's a pretty simple game with multiple ways that you could extend and increase its complexity. Game Instructions You are starting the game with a fictional balance of $100 This game will have 10 rounds The player with the highest balance after 10 rounds will be the WINNER! Game worksheet  How each round proceeds:  Each student independently decides if they...

Chart of the Week: What is your go-to for product research: social networks or Google?

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Oct 01, 2019
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Chart of the Week, Behavioral Finance
From Visual Capitalist:                                                           Gen Z  Millenial  Gen X   Boomers  Gen Z  Millenial  Gen X   Boomers Questions: Where do you do you product research? Does the answer vary based on the product that you are researching? What social media sites do you use most...

QoD: At what age do you think most people would find it embarrassing to still be living with their parents/guardians?

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Sep 24, 2019
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Question of the Day, Budgeting, Behavioral Finance, Career
Answer: 28 Questions: At what age would YOU find it embarrassing to still be living at home with your parents/guardians? Explain. At what age do you hope to be out on your own and not living at home with your parents/guardians?    Can you name a few reasons why adult children are living at home? Do you think if you were to live at home after high school/college that you would  be expected to contribute to household expenses? Why or why not?  Click here for the...

QoD: What's the average number of times that a person wears a specific piece of clothing?

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Sep 09, 2019
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Question of the Day, Budgeting, Behavioral Finance
Answer: 7 Questions: How often have you worn the outfit that you are wearing today?  One writer thinks about their clothing cost by analyzing their CPW (cost per wear calculated by dividing the cost by number of times that an item is worn). What do you think the CPW is for your favorite pair of shoes/sneakers? favorite jeans? What do you think social media's impact has been on clothing sales? Explain. Click here for the ready-to-go slides for this Question of the Day that you can use in...

Question of the Day: When a couple takes out a loan, which credit score does the lender use?

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Sep 03, 2019
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Question of the Day, Behavioral Finance, Credit Scores, Mortgages
Answer: The partner with the lower score Questions: How do you think having different credit scores can affect a relationship?  How would you feel… being the only spouse listed on the mortgage (the home loan) because of a high credit score being the spouse left off the mortgage because of a low credit score Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (Zillow):  When applying...

Throwback Tuesday QoD: What percent of 13-17 year olds have a savings account?

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Sep 02, 2019
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Savings, Question of the Day, Research, Current Events, Behavioral Finance
Answer: 54% Questions: Do you have a savings account? If not, why not? If so, what age did you open on and what motivated you to open it? Do you have any savings goals?  Do you find it easy/difficult to save money? Explain.  Here's the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (from Ipsos): To help with saving their money, a majority (54%) of Gen Zs have a savings account. Among those who have a savings...