Category: Behavioral Finance

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): ...

Interactive: How does company news affect stock prices?

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Jan 21, 2019
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Investing, Stocks, Behavioral Finance
Here's a Kahoot ("Stock Prices: Up or Down?") for students to test their intuition on how news about popular companies affects their stock prices on the day of the announcement. Students love making predictions and this game has some surprising results which will lead to some interesting discussion. Each question takes the form of company news and students predict how the stock price moved on the day the news came out.  What's the objective of this interactive? For students to...

What Would You Do With An Extra $5,000? Compounding Your Students' Interest In A Custodial Roth IRA

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Jan 15, 2019
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NGPF Fellows, Investing, Behavioral Finance, Retirement
The following blog post comes courtesy of NGPF Fellow, Brett Shifrin, of Gould Academy in Bethel, Maine. ----- Recently, a student captured the imagination of my class. It stemmed from a comparison of Money Market Deposit Account(MMDA) and Certificate of Deposits (CD).  It was suggested that one of these accounts could be very useful for graduation gifts this spring. One of my students, Phil, asked,  “Mr. Shifrin, what would you do if you unexpectedly received $5,000?”...

Chart of the Week: Are online reviews credible?

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Jan 15, 2019
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Chart of the Week, Behavioral Finance
From Pew Research: Consumers have long relied on advice and recommendations from others before making purchasing decisions, and Americans today have access to a vast library of customer ratings and reviews that they can consult when deciding if products or services are worth their money. This survey finds that a substantial majority of the public now incorporates these customer ratings and reviews into their decision-making processes when buying something new: Fully 82% of U.S. adults say they...

Question of the Day: What is the #1 way that shoppers use their cell phones to help with in-store purchases?

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Jan 07, 2019
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Question of the Day, Purchase Decisions, Behavioral Finance
Answer: Call or text someone to discuss a purchase Questions: Have you ever used a cellphone to help with a purchase decision while inside a store?  If so, which of the four actions above have you done and how did it affect your purchase?  Do you often reach out to friends before making an online purchase?  How do you use online reviews before purchasing a product? How do you judge whether or not a review is credible and should be believed?  Here's the ready-to-go...

Question of the Day: What is the most popular New Year's resolution for 2019?

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Jan 06, 2019
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Question of the Day, Savings, Behavioral Finance
Answer: Exercise more Here are the top five: Questions: Do you think that making New Year's resolutions are a good idea? Explain.  Do you have any New Year's resolutions? If so, what are they? If not, why not?  What are some strategies that you can use to make resolutions stick? Have you had success with these in the past?  Here's the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (from the Denver Channel): ...

FinCap Friday: Get S.M.A.R.T

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Jan 03, 2019
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FinCap Fridays, Behavioral Finance
It's a brand new year and we've all got plenty of goals we want to work towards! It's a time of hope and new beginning, but what happens when you aren't so sure that you're on track to achieve your goals? Check out the first FinCap Friday of 2019 to find out the secret to making sure your goals and resolutions are accomplished!   Did you know that we recently added a "no-tech" version of FinCap Friday where we embedded the 5 questions right into the slide deck so no need to have your...

Best of 2018...PBS Two Cents Personal Finance Videos

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Jan 03, 2019
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Video Resource, Budgeting, Behavioral Finance, Financial Scams, Mortgages, Paying for College
PBS Two Cents made a big splash on the scene in 2018. Philip Olson and Julia Lorenz-Olson create engaging videos that do a great job explaining personal finance concepts in ways that your students will understand. We added several of their videos to our video library and you can also hear their story on the NGPF Podcast.  I reached out to Philip today and he was kind enough to share the "top 5" videos he and Julia produced in 2018 (based on Facebook and YouTube views). Beth has also created...

Best of 2018...Most Engaging Blog Posts

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Jan 01, 2019
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Personal Finance, Credit Cards, Cryptocurrencies, Behavioral Finance, Policy, Paying for College
Happy New Year! Continuing the "Best of 2018" theme, I wanted to share with you the blog posts that engaged readers the most in 2018. To measure engagement I focused on two factors. I looked for pages that attracted hundreds of visitors and had the highest average time spent per page. Time spent on the page was a good indication that educators/students read the blog post in its entirety and engaged in the mini-activity described in it. For those new to NGPF, several of the posts below are...

Best Of 2018...NGPF Video Library

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Dec 27, 2018
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Behavioral Finance, Video Resource, Compound Interest, Credit Scores, Paying for College, Budgeting
Looking for videos to supplement your existing lessons? Here's a few of teacher favorites as measured by click data in our Video Library. Drumroll please...top 10 picks for 2018: 10. The Pain of Paying from Dan Ariely of Duke University 9. Fighting the Financial Pitfalls of the Supermarket from PBS Digital's Two Cents 8. What's A Credit Score? from Kal Penn Explains 7.Why We Crave What's Cool from PBS NewsHour 6. Can I Afford It? from CNBC 5. Battle Between Your Present and Future Self from...