Category: Behavioral Finance

QoD: How much do Americans spend monthly on subscriptions?

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May 15, 2019
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Question of the Day, Budgeting, Behavioral Finance
Answer: $237 a month 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 happened?  The research found that 84% of Americans underestimate how much they spend every month in subscriptions? How...

QoD: Which credit card feature is most popular with consumers: 0% interest, 3% cash back or $500 cash sign-up bonus?

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May 14, 2019
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Question of the Day, Credit Cards, Research, Behavioral Finance
Hat tip to Beth Tallman for pointing out this study from Bankrate which is full of great question material:) Answer: 3% cashback Questions: Why do you think the 3% cash back feature is so popular with cardholders?  Do you think the most popular feature might differ for those carrying a large credit card balance (i.e., you were not paying off your credit card bill every month)? Why or why not? Which would you choose if deciding between these three features? Explain your answer. ...

Reading List for a holiday weekend (April 20-21)

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Apr 19, 2019
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Financial Literacy, Career, Investing, Behavioral Finance, Payment Types, Retirement, Current Events
Financial Literacy NGPF is in this list of quality free curriculum (and training) for personal finance teachers—no excuse for not being prepared!(Marketwatch) Need some inspiration this weekend? Read this Marketwatch piece about Troy Murphy’s pursuit of spreading financial literacy. NGPF fellow Kerri Herrild’s Giving Project and Daniel LaSalle’s Philly Financial Cooperative are the beneficiaries of Troy’s work. Then listen to the podcasts Tim has done with all...

Podcast: Investing Panel with Jonathan Clements and Bill Bernstein in March 2019

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Apr 19, 2019
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Investing, Podcasts, Stocks, Behavioral Finance
What follows is a summary of the Investing panel discussion held at the NGPF Summit in mid-March 2019 in San Francisco. The all-star panel included Bill Bernstein, financial theorist, neurologist, and financial adviser/author, and Jonathan Clements, WSJ columnist, author, educator and blogger at the HumbleDollar.com. Apologies for the inconsistent sound quality.  Details 0:00~4:25 Introduction 4:25~12:42 The stock market game’s traps 12:42~24:20 Importance of friends and...

QoD: Which business has the most physical locations in the U.S.: McDonald's, Payday Lenders or Starbucks?

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Apr 07, 2019
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Question of the Day, Financial Scams, Behavioral Finance
Hat tip to Beth Tallman for the idea for this question of the day.  Answer: Payday lenders Questions: Based on this information alone, do you think that payday lending is a good business for the lenders? Explain. Payday loans carry interest rates as high as 600%. Why do you think that people continue to borrow from payday lenders despite these interest rates? What financial advice would you give to someone who finds themselves taking out payday loans on a frequent basis? Here's...

Reading List for March 16-17

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Mar 15, 2019
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Paying for College, Behavioral Finance, Economics, Insurance, Investing, Financial Literacy, Taxes
Happy St. Patrick's Day! Happy Reading! Higher Ed The story of the week has to be this one about the college entrance bribery. (WAPO) (Inside Higher Ed) While we are on the subject, this next article highlights the class differences in the college experience as poor kids tell rich colleges what they are experiencing. (EdSurge) And most people are surprised to learn how low the college completion rate is: (NPR) Student Loan Hero surveyed 1000 people across all generations about their debt. One...

Using Correspondence From Former Students to Inspire and Motivate Your Current Students

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Mar 05, 2019
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NGPF Fellows, Behavioral Finance, Financial Literacy, Teaching Strategies
The following blog post comes courtesy of NGPF Fellow, Patrick Kubeny, of Rhinelander High School in Rhinelander, WI. --- If you are looking for ways to motivate and inspire your current students to actually implement some of the financial strategies you are teaching in your classes, try using some correspondence from some of your former students--IT WORKS! I received the following email from a former student and shared it with my personal finance classes:   Hello Mr. Kubeny (Coach K!):...

QoD: How much does the average player spend on Fortnite?

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Feb 27, 2019
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Question of the Day, Budgeting, Behavioral Finance
Answer: $84.67     Thanks to Yanely for the inspiration for this QoD! Questions: What do you think motivates people to make these in-game purchases? Name at least three. What are the ways that these developers “nudge” players to open up their wallets? Have you ever made any in-game purchases on other gaming sites? Here's the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (from LendEDU):  Fortnite, a...

Reading List for February 23-24

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Feb 22, 2019
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Financial Literacy, Behavioral Finance, Budgeting, Career, Paying for College, Investing, Retirement, Taxes
  Financial Literacy “Five Things High Schoolers Need To Know More Than Computer Science” from (Forbes). We all know what one of those things is!!! Budgeting The costs of being a woman: Why women end up with less money. (Beth Kobliner) Investing An interesting series of charts from Visual Capitalist shows where the breakdown of investments in 2018 Lyft has not become a verb like “Uber” has, but it looks like they will beat Uber with its IPO. (CNBC) Paying for...

Chart of the Week: Should We Trust Investing "Experts"?

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Feb 19, 2019
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Chart of the Week, Investing, Stocks, Behavioral Finance
From Retirement Field Guide, comes a chart showing the stock chart for an S&P 500 ETF (which tracks S&P 500 Index) from 2012 to present with quotes from noted pundits. Click on the chart to get a larger version that is easier to read:  Questions: How much has the S&P 500 risen over this period?  Why do you think that so many experts may have been expecting a crash in 2012? (Hint: what happened a few years earlier?) What is it about the stock market that makes us...

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

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Feb 17, 2019
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Question of the Day, Savings, Behavioral Finance
Answer: Earning a grad/Master's Degree Buying a car Getting married 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 the ready-to-go slides for this Question...

Video: The Influence of Influencers

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Feb 17, 2019
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Advertising, Video Resource, Budgeting, Behavioral Finance
From Reuters:  Questions: Do you follow influencers on any of the social media platforms?  What makes you decide whether to follow a specific influencer? Have you ever bought anything that an influencer recommended on social media? Explain.  Why do you think that influencers are more effective than traditional advertising?  ------------------- Related content: Question of the Day; A YouTuber with over 1.4 million views a month can expect to earn about _____________ in...

QoD: How much does the average adult spend on Valentine's Day?

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Feb 13, 2019
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Budgeting, Behavioral Finance, Current Events
Answer: $162 Questions:  What do you think are the most common items purchased on Valentine's Day? Try and name 5 and estimate their cost.  Are there Valentine's Day purchases that cost a lot more around the big day than they do the rest of the year? What economic principle explains that phenomenon?  Why do you think that fewer people are spending on Valentine's Day compared to a decade ago?  What are some low-cost ways to celebrate Valentine's Day without "breaking the...

Just One Resource - INTERACTIVE: Shady Sam

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Feb 04, 2019
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Just One Resource, Interactive, Math, Behavioral Finance, Student Loans, Mortgages, Financial Scams
    In this weekly blog post, the Curriculum team will highlight Just One Resource from our NGPF collection that maybe doesn't get the attention it deserves. Use it this week or bookmark it for later.  [The Resource]  INTERACTIVE: Shady Sam The Gist: Students play loan shark in this engaging game where they see loans from the perspective of a lender as they try to maximize their profits.  The Best Parts: Students decide between three loan options for...

Question of the Day: Which savings strategy is most effective: a) Saving $5/day b) Saving $35/week or c) Saving $150 per month?

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Jan 30, 2019
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Behavioral Finance, Question of the Day, Savings
Answer: Saving $5/day. Questions Do you think that setting goals is important when it comes to saving money? Why or why not? Why do you think setting the $5/day goal was more effective than the others?  Have you ever set a savings goal? If so, what was it and did you accomplish it? If not, what savings goal would you set?  Here's the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (from Business Insider): ...