Category: Behavioral Finance

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 For Your 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
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...

Question of the Day: When it comes to the cost of a car, research shows that most consumers focus on the ___________ payment during the car buying process.

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Oct 28, 2020
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Question of the Day, Purchase Decisions, Behavioral Finance
Answer: Monthly Questions: Do you think the monthly payment captures how much the car will cost you? What else do you need to know to calculate the total cost?   Why do you think that most consumers focus on the monthly payment instead of the overall cost of the car? When you stretch out the term of an auto loan (e.g., from 4 years to 7 years), what happens to the monthly payment? total interest paid on the loan?  Here's the ready-to-go slides for this Question of the Day that...

NGPF Podcast: Dr. Ashley Whillans on Time, Money, and Happiness

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Oct 16, 2020
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Podcasts, Behavioral Finance
Dr. Ashley Whillans teaches at the Harvard Business School. She is an award-winning and leading global expert on the relationship between time, money, and happiness. Her thoughts are regularly shared in the New York Times, Washington Post, Wall Street Journal, and Harvard Business Review, just to name a few. She just finished her first book "Time Smart: How to Reclaim Your Time and Live a Happier Life". This conversation was one of a kind -- you'll hear how Dr. Whillans transitioned from...

New Economy Adaptation - Budgeting In an Era of Income Volatility

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Oct 06, 2020
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Activities, Behavioral Finance, Budgeting
Background. Let your history teachers know that they will need them to teach students how budgeting was taught in the past: with steady monthly income and expenses and saving for an emergency that’ll pop up here and there. In today’s world, that is no longer the reality for many Americans. Take every lesson that has anything to do with budgeting and look at it through the lens of what is the increasing reality of millions of Americans: Pre-COVID statistic: more than one in three...

Question of the Day: What's the relationship between the value of a car and a driver’s happiness (positive feelings) about the car?

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Oct 06, 2020
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Question of the Day, Behavioral Finance
Answer: Zero Questions: Do you agree or disagree with these research findings? Explain. What do you think are some of the reasons that people buy luxury cars?  How comfortable will you be spending $37,851 (average cost of new car) when you are ready to buy a new car?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (University of Michigan research study):  “The assumption is a luxury car feels better...

Question of the Day: Which offer would make you more likely to buy a $50 pair of jeans: $10 off or 20% discount?

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Sep 23, 2020
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Question of the Day, Behavioral Finance
Answer: 20% discount  Questions:  How do most retailers choose to reduce the cost of items: dollars saved or percentage discount?  For the example given with this question, which of the two offers for the $50 jeans, $10 off or 20% discount, yields the largest amount of savings? Why do you think consumers are driven to the biggest number?  Here's the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (Visual Capitalist...

NGPF Podcast: Jenny Nicholson of McKinney on creating award-winning NGPF Arcade Games

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Sep 18, 2020
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Podcasts, Behavioral Finance, Ethics, Teaching Strategies
If you have ever enjoyed games in the NGPF Arcade, you experienced the creative genius of Jenny Nicholson and her amazing team at McKinney. The NGPF-McKinney partnership is now going on 3 years and the games created have delighted millions of high school students. So sit back and get the "inside scoop" on Jenny's creative process, what she hopes to achieve through these games and the engagement tactics she and the game designers use to "hook" the students. You might also learn about the new...

NGPF Podcast: Morgan Housel discusses his new book "The Psychology of Money"

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Sep 11, 2020
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Podcasts, Behavioral Finance, Investing, Index Funds
Morgan Housel is back for an encore performance on the NGPF Podcast to talk about his new book, The Psychology of Money. Morgan has that rare talent of making financial lessons memorable through incredible storytelling that weaves in history, psychology, sociology and even medicine. In fact, his book is a compilation of 19 of his favorite stories. Listen to this podcast and learn about his creative process, his favorite stories and the money lessons they teach and COVID-19's long-term impact on...

Virtual Adaptation - ANALYZE: The Influence of Social Media

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Aug 31, 2020
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Teaching Remotely, Behavioral Finance
Have you ever thought about how social media might affect people’s spending behaviors? In the activity ANALYZE: The Influence of Social Media, students will explore various tactics that influencers and brands use to market products through social media.    At a time where many schools have transitioned to offering synchronous and asynchronous learning, we’ve listed some adaptations and ideas that may work for your current classroom environment.    Synchronous...

Question of the Day: What was the percentage increase in e-commerce retail sales in the April - June quarter compared to 2019?

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Aug 25, 2020
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Question of the Day, Purchase Decisions, Behavioral Finance
Answer: 45% Questions: Are you/your family purchasing more online than you did last year?  What items are you purchasing online vs. purchasing in-store?  Do you think your purchasing behavior (online vs. in-store) will change post-coronavirus?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (Axios):  The big picture: Stuck at home for weeks on end, we turned to the internet and delivery to meet our...

Virtual Adaptation - PLAY: The Ultimatum Game

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Jun 29, 2020
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Teaching Remotely, Behavioral Finance
PLAY: The Ultimatum Game is a classroom experiment that demonstrates how irrational humans can be when making financial decisions. With this game, students will explore the behavior and emotions behind the financial decisions they make. In this activity, students will be presented with this scenario: Two Teacher Tips: As classroom discussion will be key to learning the behavioral finance principles of this activity, it is important to review the Teacher Guide before facilitating this activity...

Question of the Day: February of 2020 marked the end of the longest economic expansion in U.S. history. How many months did this expansion last?

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Jun 09, 2020
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Question of the Day, Economics, Behavioral Finance
Answer: 128 months Questions: What happened in February that led the economy to shift from expansion to a recession, which is a period of economic decline?  How do you think that consumer mindset changes during a recession in terms of their buying behavior?  Do you think that people tend to save more during a recession or during an economic expansion?  The expansion lasted 128 months, how long do you think the current recession might last?  Click here for the ready-to-go...

Question of the Day: Do investors buy stocks in companies based on TV commercials?

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Jun 03, 2020
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Question of the Day, Behavioral Finance, Investing, Stocks
Answer: YES Questions: Why do you think that investors buy stocks in companies after they see a TV ad on those companies?  Are there ads or commercials that you have seen over the past week where you think "Hmmm...that could be a good investment?" Do you think this is a good idea? What other research might you want to do before making a decision to buy stock?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.  Behind the...