Category: Behavioral Finance

Interactive: Test Your Investing Decision-Making

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Jul 18, 2018
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Behavioral Finance, Interactive, Investing, Stocks
Hat tip to Big Picture Blog which pointed to this Jason Zweig article about whether our brains are wired for wealth. It's a great read and buried within it is a reference to the Iowa Gambling Task, which provides a good proxy for decision-making and risk-taking. Here's the premise of the game: you start The game takes about 5-10 minutes and I created a set of reflection questions (below) and here's link to a PBS video explaining the brain science behind the game. Here's the opening screen...

Investing Activity Idea: How Can a Jar of Jelly Beans Teach Students About the Stock Market?

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Jul 12, 2018
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Investing, Activity, Stocks, Behavioral Finance
How can we teach students about the stock market when they have no investing experience? I listened to this Masters of Business podcast with Barry Ritholtz interviewing investor and author Joel Greenblatt and picked up a few good ideas. Joel is not only a practitioner (a very successful hedge fund manager) but also an educator having spent the last 20+ years as a professor at Columbia Business School. Joel described the challenges of describing the stock market to a group of 9th graders at...

Interactive: Do you have a designer's eye? OR Can you tell which item costs a $1,000 more?

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Jul 08, 2018
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Interactive, Budgeting, Behavioral Finance, Purchase Decisions
Ok, I have never been accused of having a designer's eye and answering the five questions in this Marketplace quiz provided further proof of that. I thought this short interactive might lead to interesting conversations about why we buy the things we do and all the psychological factors that play into purchasing decisions (e.g., status vs. function) From Marketplace:  Questions: Did you do better or worse than you expected picking out the higher-end furniture?  What surprised...

Top 10 Posts on NGPF Blog for 2017-18 School Year

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Jul 05, 2018
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Current Events, Behavioral Finance, Index Funds, Cryptocurrencies, Investing, Budgeting
The NGPF Blog provides educators with two posts daily during the school year, including an engaging question of the day. Teachers rely on the daily Question of the Day as a great conversation starter and appreciate that it engages all students since it requires no prior knowledge. In addition, the blog provides a great way to note trends in personal finance, highlight high quality resources and share ideas from our teacher community. With the school year ended, we wanted to highlight the most...

Investing links that have caught my attention recently

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Jul 03, 2018
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Investing, Behavioral Finance
I've been catching up on my summer reading recently. Here are a few investing posts from the blogosphere that caught my attention (thanks to Abnormal Returns for your curating skills!): Solin's Simple Rules. What would be your four rules for investing? Follow these four rules and you will be better off than 98% of the investing public. Flashback to Bill Bernstein's insight about investing: It's simple but not easy.  What's the most important number in financial planning? Asset...

NGPF Podcast: Tim Talks to JL Collins About Financial Independence and Investing

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Jun 29, 2018
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Podcasts, Index Funds, Investing, Budgeting, Behavioral Finance
It started out innocently enough...he wanted to write letters of financial advice to his daughter. J.L. Collins never imagined that his blog would become a favorite source for the financial independence movement. His knack for storytelling and simplifying complex topics has boosted his blog popularity to over two million pageviews per year and convinced him to write a book, The Simple Path to Wealth. Hear how this proponent of index investing (his Stock Series is a must read for those who...

Videos: Brain Games Related to Money

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Jun 21, 2018
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Behavioral Finance, Video Resource, Investing, Advertising, Financial Scams
I was just introduced to this National Geographic TV show called Brain Games. We watched an episode today and I am hooked. What makes it compelling? It requires active participation on the part of the viewer and provides a heavy dose of behavioral finance. I am queuing up this list to binge watch one lazy summer afternoon (does that exist?), but thought I would share ahead of this weekend in case someone else :) was motivated to send me a few discussion questions (tim@ngpf.org) that they would...

Long-form: One of the best articles that I have read about the psychology of money

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Jun 20, 2018
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Personal Finance, Behavioral Finance
It's the summer, so we all have time for longer form videos and articles. Look for these periodically over the next few month. Morgan Housel is quickly becoming one of my financial faves after I heard him on this podcast recently.  Then I came across his article simply titled Psychology of Money in which he lists 20 examples of "bad behavior" with money that he has witnessed first-hand. He's a great story-teller and provides great examples that you can share with your students. See how many...

NGPF Podcast: Tim Talks to Economics Professor and Marginal Revolution University (MRU) Co-Founder Alex Tabarrok

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Jun 15, 2018
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Behavioral Finance, Podcasts, Investing, Personal Finance
Alex Tabarrok, an economics professor at George Mason University, holds behavioral finance near and dear to his heart—and he’s got lots to show for it! A staunch advocate of financial education, he co-founded Marginal Revolution University, to bring economics education to the masses (listen to the podcast to learn more about its reach). Listen to Alex describe the power of prediction markets, how he teaches investing, his investing philosophy and the challenges and thrills of...

Pineland Dollars - A Classroom Economy At Work!

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Jun 03, 2018
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NGPF Fellows, Budgeting, Behavioral Finance, Economics, Teaching Strategies
Teachers will share their experiences in the classroom and how they apply what they learned at NGPF PD events (FinCamps, FinCamps PLUS, Summer Institute and Summit). This week, we focus on NGPF Fellow, Maureen Neuner, from Pinelands Regional High School, Little Egg Harbor (NJ), who explains her 'Pineland Dollars' (named after her school) classroom economy! -------- Another project we do since we are in the money unit of our class is our "Pinelands Dollars." I set up a simulated saving, earning...

Question of the Day: What is the top financial goal for teens?

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May 31, 2018
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Question of the Day, Personal Finance, Behavioral Finance, Paying for College, Research, Current Events
Answer: Graduating from college Behind the Numbers (from Junior Achievement survey): "Junior Achievement USA and AIG surveyed 1,000 teens to learn their perceptions about personal finance and financial decision-making. The survey found that while 75 percent of teens who responded listed their top financial goal as graduating from college, only half thought gaining financial independence from their parents was an important goal. And 43 percent worry they don't have the skills they...

Question: What percent of the time do people click the first item on Google search results page?

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May 30, 2018
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Research, Question of the Day, Advertising, Behavioral Finance, Purchase Decisions
Answer: 24% (mobile) - 32% (desktop) Legend: CTR = Click through rate  Questions: Describe your search habits when looking for info for a school project and how many links you typically click on.  What are your search habits when looking to purchase an item? Do you search on a specific website or search from a general search engine (e.g., Google or Bing)?  What are advantages/disadvantages of limiting your search to the first 4-5 items from a Google search?  Click here for...

Question of the Day: What is your personal definition of wealth?

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May 24, 2018
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Behavioral Finance, Question of the Day
It's the end of the school year, so it's time to get a little philosophical. Answer: Will vary The motivation for this question came from this Schwab Modern Wealth survey completed by 1,000 Americans. Here were the top 3 ways they defined wealth: Living stress-free/peace of mind (28 percent) Being able to afford anything I want (18 percent) Loving relationships with my family and friends (17 percent) Questions: Why do you think people define wealth in so many different ways? Do you think your...

Finance Explained by Danielle: Are “Easy Payments” As Easy As They Seem?

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May 20, 2018
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Current Events, Budgeting, Behavioral Finance
A couple of weeks ago, I was looking for something new to experience that wasn’t going to break the bank. I had stumbled upon an ad for a local amusement park that offered fairly priced season tickets, and my gut instinct was to check it out. After comparing a one-day ticket to a season pass, I discovered that it was worth it to purchase the latter since it would pay for itself in less than two visits! After factoring in parking—it’s $20 per visit—I knew it was well worth...

What I Am Reading This Weekend (May 19-20)

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May 18, 2018
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Credit Cards, Current Events, Student Loans, Behavioral Finance
Busy week..Happy Friday! Here's what caught my attention that I'll be reading this weekend. Enjoy! Student loans It's a new perk in many companies..but should companies help their employees pay off their student loans? The Atlantic weighs in.  Federal student loans for the new school year are set and they are....here's the article that describes why the rate is rising.  He was an expert on student loans, until he wasn't. Inside the story of the mysterious Drew Cloud. ...