Category: Behavioral Finance

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...

NGPF On-Demand: The Power of Habit

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Jan 18, 2021
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Professional Development, Behavioral Finance
NGPF On-Demand is a professional development opportunity that allows teachers to deepen their content knowledge on their own schedule and at their own pace.  One of the 16 modules currently available is "The Power of Habit".  In this module, participants learn about the importance of habits, how they form, and proven methods to change or create new habits.    Here are some highlights from the module:  Collaborate with other teachers to share your best money habit. Here...

Reading List for January 15-17

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Jan 15, 2021
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Cryptocurrencies, Economics, Investing, Behavioral Finance, Career
Cryptocurrency What goes up, must come down. Just last week we posted about bitcoin reaching a record high. This week it turned south. (CoinDesk) And many people are scrambling to find the password to their digital wallet to cash out! (NYT)   Economics Not a lot of good economic news this week:  New unemployment claims jumped back up to the million mark last week. (Yahoo Finance) (NYT) Lael Brainard estimates the unemployment rate for the lowest paid workers is likely north of 20%...

Four Interactives to Engage Your Students

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Jan 12, 2021
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Interactive, Paying for College, Investing, Checking Accounts, Behavioral Finance
Interactives are clearly popular resources in the classroom. Paired with each interactive are professional development opportunities for teachers to build their content knowledge. Filing a FAFSA College enrollment and FAFSA applications have plummeted, presumably because of Covid. Teachers are clearly encouraging students to file FAFSAs, and can use all the help they can get. The following interactive will help students  see for themselves that they can likely afford college. Student...

NGPF Podcast: Gene Natali on his new book, The Missing Second Semester

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Jan 12, 2021
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Podcasts, Investing, Behavioral Finance
It was great to have author and entrepreneur Gene Natali back on the podcast. He discusses his new book, The Missing Second Semester, and the exciting news about his new company, Troutwood. Gene's a great storyteller and provides some useful analogies to explain challenging finance concepts. Enjoy!  Description: 0:00~1:33 Introduction 1:33~12:57 Gene’s background and the path to writing The Missing Second Semester and starting Troutwood 12:57~22:13 The Troutwood Time Portal and the...

Question of the Day: Can you name ONE of the top 3 financial goals for millennials?

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Jan 05, 2021
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Question of the Day, Behavioral Finance
Answer: Debt repayment – 57% Travel – 48% Increasing the amount they save for retirement – 45%   Questions: Do you think that financial goals are important? What are three of your immediate financial goals that you want to achieve in the next five years? Pick ONE of those three goals and spend 5 minutes brainstorming the steps you need to take to accomplish it.  How do you think your financial goals might be different 10 years from now?  Click here for...

Using Behavioral Economics to Make Those New Year's Resolutions Stick

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Jan 04, 2021
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Behavioral Finance
Most students are making financial decisions right now. This is an opportune time for personal finance teachers to help them form good habits, while they are also learning personal finance concepts. Learning the material doesn’t guarantee they will apply it.  What we know about behavioral economics is that our behavior oftentimes runs contrary to what is a rational choice or what is desired in the long run. Nudging students to use behavior-based intervention strategies to reach their...

Question of the Day (Updated): How much have Americans increased spending on subscriptions during the Covid Pandemic?

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Dec 01, 2020
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Question of the Day, Behavioral Finance
Answer: Average increase of $192.30 Here is a look at which generations were more likely to sign up for a new subscription service. Questions: Have you ever signed up for a monthly subscription? If so, what do you subscribe to and how much do you pay? If not, do you know any family members who have subscriptions (who knows, maybe you even use their Netflix account:) Have you ever heard someone complain about signing up for a subscription that they didn't even know about? What...

Black Friday 2020 Reading List

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Nov 27, 2020
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Economics, Investing, Behavioral Finance, Student Loans, Cryptocurrencies, Taxes
Hope you all had an enjoyable and safe Thanksgiving yesterday! Black Friday Here is one out of the UK to read BEFORE you do any Black Friday shopping, using behavioral economics to explain marketing tactics. (MouthyMoney) While we are on Black Friday—what will it look like? (Probably like Cyber Monday.) (USA Today) And Nathan Burrow of the NYT shares advice on how to avoid overspending on Black Friday. (NYT-subscription) Economics Surprise!? Consumer Confidence fell unexpectedly in...

NGPF Podcast: Dina Isola and Scott Dauenhauer share insights on managing your 403(b) and 457 plans

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Nov 13, 2020
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Podcasts, Investing, Tips for Teachers, Behavioral Finance, Advocacy
Dina of Ritholtz Wealth Management) and Scott of Meridian Wealth have a shared goal: for every teacher to have access to high quality vendors for their 403(b) and 457 retirement plans. At a recent NGPF Speaker Series event, they shared insights gained from working with scores of teachers and analyzing thousands of plan documents. Listen to this podcast and walk away with practical knowledge you need to analyze your own plan as well as tips on how to advocate for better plans. Enjoy! Details:...

Podcasts In The Classroom: What's the Relationship Between Money and One's Emotional Well-Being?

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Nov 09, 2020
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Podcasts, Behavioral Finance, Podcasts In The Classroom
After more than 400 teachers expressed interest in bringing podcasts into the classroom, we decided to build out a weekly activity to fulfill that desire. This week's activity (you will be asked to Make a Copy when you click on the link) focuses on the relationship between money and one's emotional well-being with 3-5 minute audio excerpts from the NGPF Podcast. Few ideas for implementation are to have students listen to ONE of the podcast clips and then complete the Google form. You could...

Question of the Day: What percent of your daily activities are habits?

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Nov 08, 2020
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Behavioral Finance, Question of the Day
Answer: 45% Questions:  Reflect on your day so far. What are some examples of habits that have become part of your daily routine? What are some money habits you have? Do you find it easy or difficult to change habits? Explain. Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (Chris Sparks: Why Habits Are More Important Than We Can Imagine) Humans are, by our nature, creatures of habit. ~45% of...