Category: Behavioral Finance

Interactive: Dark Patterns At Work

|
May 26, 2021
|
Interactive, Behavioral Finance
Hat tip to Jenny Nicholson for sharing this game, Terms and Conditions. Do you ever feel like you are being manipulated on websites? Unfortunately, dark patterns are all too prevalent on websites and apps. What's a Dark Pattern?  As defined by expert Harry Brignull, dark patterns "are tricks used in websites and apps that make you do things that you didn't mean to, like buying or signing up for something." The first step in not succumbing to these dark patterns is awareness which is why...

Question of the Day: What do 98% of consumers do prior to buying a product?

|
May 24, 2021
|
Question of the Day, Behavioral Finance
Answer: Read online reviews Questions: Why do you think that so many people want to look at reviews before making a purchase?  Do you check online reviews prior to purchasing products? How do you know if reviews are credible?  Do you vary the amount of time you read reviews based on the cost of the item that you are looking to purchase?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers...

NGPF Podcast: Bill Bernstein on his latest book, The Delusions of Crowds

|
May 07, 2021
|
Podcasts, Investing, Behavioral Finance
GameStop, cryptocurrencies, NFTs...and the list goes on of examples of speculation in today's financial markets. Who better to weigh in on these and other examples of financial speculation than Bill Bernstein. The full title of his new book, The Delusions Of Crowds: Why People Go Mad in Groups, captures the essence of our conversation. In this podcast, Bill discusses the power of narrative to fuel "bubbly" behavior and why social media (think sub-reddit groups like...

Question of the Day: How long does the average user spend on TikTok a day?

|
Apr 05, 2021
|
Question of the Day, Behavioral Finance
Answer: Over 45 minutes a day! [21.5 hours a month!] Questions: How much time do you spend on TikTok? What do you like about it? Has TikTok ever impacted your financial knowledge or have your purchasing decisions been influenced? How? As the platform continues to grow, how are companies using TikTok to promote their products? Why is this important? Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.   Behind the numbers (Sprout...

Question of the Day: What percent of homebuyers in Nov/Dec 2020 made an offer on a house they hadn't seen in person?

|
Feb 24, 2021
|
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.

|
Feb 02, 2021
|
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?

|
Jan 26, 2021
|
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

By
|
Jan 22, 2021
|
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

|
Jan 18, 2021
|
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

By
|
Jan 15, 2021
|
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

|
Jan 12, 2021
|
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

|
Jan 12, 2021
|
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?

|
Jan 05, 2021
|
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

|
Jan 04, 2021
|
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?

|
Dec 01, 2020
|
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...