Category: Behavioral Finance

Savings QoD: How much (in billions of dollars) are Americans losing by keeping their money in low-interest savings accounts?

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Jun 04, 2019
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Savings, Question of the Day, Research, Behavioral Finance
Answer: $50 billion Questions: Why do you think Americans leave their money in low-interest savings accounts when they could earn more by switching banks?  Would your answer to the previous question change based on the amount of money you had in your savings account?  Online banks tend to have the highest interest rates on savings accounts. Would you trust your money with an online bank? Click here for the ready-to-go slides for this Question of the Day that you...

Reading List for May 31-June 2

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May 31, 2019
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Investing, Credit Cards, Behavioral Finance, Budgeting, Research, Retirement
From 403(b) plans to goal setting to digital decluttering and graduation advice...enjoy these weekend reads with your favorite cup of joe:  Thinking that annuity in your 403(b) is gouging you? You are probably right (from Barrons): "Teachers’ 403(b) plans are sold directly to individuals, rather than to employers, so the interest of the salesman was coming first. “Imagine you’re a kindergarten teacher and they’ve given you a 400-page prospectus about variable...

Reading List for Memorial Day Weekend 2019

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May 24, 2019
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Generosity, Behavioral Finance, Personal Finance, Investing
Enjoy these Memorial Day weekend reads curated by Beth with a few additions from Tim:  NGPF Podcast guest, Morgan Housel, is at it again with a valuable piece on "Realistic Personal Finance Hacks." My favorite: "A finely tuned BS radar that screams “red alert” when promises of abnormal gains without abnormal sacrifice are offered." It's a time for advice to graduates, here's a few that caught my attention (interesting to see the overlap since they come from two very...

QoD: What worries adults most when it comes to financial matters?

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May 21, 2019
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Question of the Day, Behavioral Finance, Retirement, Investing, Insurance
From Gallup: Questions: As you think about leaving high school, what would be your top money worry? How do you think your parents/guardians would answer a question like this?  What are steps that a person can take to reduce their worries when it comes to the first three items on the list? How much do you think these answers would change during a recession (we are currently in the midst of an ongoing economic expansion)?  Here's the ready-to-go slides for this Question of the Day...

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...