Category: Behavioral Finance

Question of the Day: We asked 300+ personal finance teachers what they planned to do with their stimulus check. What was their #1 answer?

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Apr 05, 2020
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Question of the Day, Savings, Behavioral Finance, Parent Conversations, Investing, Credit Cards
Answer: Pay down debt Here's a summary of their responses:  Questions: How do you think YOU would handle a lump sum payment of several hundred dollars NOW?  Why do you think people answer this question with such different responses? What is the importance of having an emergency savings fund now?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (USA Today) Millions of workers and their families will...

Question of the Day: What percent of investors at Vanguard (a large investment firm) have NOT made any trades in the face of recent market declines?

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Mar 31, 2020
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Question of the Day, Investing, Stocks, Behavioral Finance
Answer: More than 90% Questions: Do you think it's hard to do nothing with your investments when the stock market has dropped over 20% in a month? Why or why not? Your friend says "I know the market is going down in the next few weeks so I'm going to sell now and get back in when the prices go down?" Do you think it's easy to time the market and know when to sell and then buy back in? What are strategies that you can use to calm your nerves when the market goes down like it has over the past...

Question of the Day: What percent of Gen Z consumers are stockpiling cash in light of coronavirus?

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Mar 29, 2020
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Question of the Day, Behavioral Finance, Current Events
Hat tip to Beth Tallman for this question idea! Thank you for all of the informative articles in your weekend reading list too!  Answer: 39% Motivated by three factors: The possibility of banks shutting down The convenience of having cash during emergencies The desire to ensure access to funds Questions: How are accountholders protected if banks fail?  Are there any other reasons you can think of that might explain this behavior? What are the risks of holding lots of cash at...

Question of the Day: How much (in $s) do consumers have in unused gift cards from Wal-Mart and Starbucks?

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Feb 23, 2020
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Behavioral Finance, Question of the Day
Answer: $3.5 billion Questions: Why do you think that the balances on unused gift cards is in the billions? What strategies can a consumer use to make sure that they don't lose track of their gift cards? Would knowing that many people don’t use gift cards affect your gift-giving habits (i.e., would you decide not to give gift cards anymore since you’d be afraid it would never be used?) Click here for the ready-to-go slides for this Question of the Day that you can use in your...

QoD: What are the most popular "tricks" that shopping websites use to get us to buy more?

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Feb 19, 2020
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Behavioral Finance, Question of the Day, Purchase Decisions
Answer:  Questions: Which of the following tactics have you seen on websites?  Which of the top three "tricks" has the greatest impact on your behavior? Why?  Running out of the product..only 3 left in stock Flash sale only available for the next hour A celebrity you follow loves this product too... Why do you think these tactics are so effective?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers...

Hook Students with Commercials in the Classroom! by Renee Nelson

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Feb 10, 2020
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Advertising, Featured Teachers, Behavioral Finance
Thanks for Renee Nelson, an NGPF Fellow teaching at KIPP NYC Prep High School in the Bronx, for submitting this guest blog post: - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -  It only takes thirty to ninety seconds to get someone’s attention and to convince them to make a big purchase or persuade them to try something new. Wrap your mind around that fact because it hasn't ever gotten the recognition it deserves. There’s only one category in the Primetime...

Question of the Day: A fair coin flipped 5 times results in Heads each time. What's the probability of the next flip being Tails?

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Feb 02, 2020
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Behavioral Finance, Question of the Day, Investing
Thanks to Of Dollars and Data for their blog post about this behavioral tic and an explanation for how it applies to investing.  Answer: Exactly...50% [Coin flips are an independent process so the prior flips have no bearing on future flips] Here's a short video explainer: Questions: Why do you think that most people would expect the next coin flip to be Tails?  This phenomenon applies to other casino games, such as the Roulette Wheel (after 6 Reds in a row, the next one must be...

Reading List for January 31-Feb 2

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Jan 31, 2020
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Personal Finance, Behavioral Finance, Budgeting, Paying for College, Taxes, Insurance
Happy Super Bowl Weekend!  In case you missed this week's FinCap Friday, Credit Crunch details how the FICO methodology will impact millions of consumers.  Personal Finance/Financial Literacy This article from the NY Times “Smarter Living” section got some attention this week in social media. “Does Personal Finance Still Work in our changing Economy?” contains a great discussion of the findings of the book The Financial Diaries (Rachel Schneider and Jonathan...

Question of the Day [Updated]: What's the average cost of a 30 second Super Bowl ad?

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Jan 28, 2020
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Question of the Day, Advertising, Behavioral Finance
Answer: Low to mid-$5 million range Here's an extended cut of an ad (2:30) that is likely to catch a lot of attention on Sunday: What is this specific advertiser trying to accomplish in this commercial? What do you they want you to remember about their brand?  In an era with so many streaming services that have trained consumers to watch shows without any ads, why do advertisers spend so much on Super Bowl ads?  Which types of companies do you think benefit the most from their Super...

Question of the Day: Researchers have found five ways that spending money can make us happy. Can you name two of them?

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Jan 26, 2020
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Question of the Day, Behavioral Finance, Purchase Decisions, Budgeting
Hat tip to Nick Maggiulli of Dollars and Data blog for highlighting this research from .  Answer: Buying experiences Treating yourself (on occasion) Buying extra time Paying upfront (i.e. all-inclusive vacations) Spending on others Questions:  What are ways that you spend money that bring happiness to you? Do they fit into any of these five categories?  Why do you think that researchers found that "buying experiences" might create more happiness than buying "things?"...

QoD: Can you name 3 of the top 10 things that adults overspend on (i.e., spend more than their budget)?

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Jan 21, 2020
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Behavioral Finance, Question of the Day, Budgeting
Answer: Questions: Do you have a budget? Are you able to stick to it all of the time/some of the time/none of the time?  How would you answer this question for yourself: What are the purchases that cause you to overspend?  Take 2 or 3 items from the top 10 list and explain why that specific item leads to overspending.  Explain strategies that you could use to control spending in those categories. Click here for the ready-to-go slides for this Question of the...

Teach The Triangle: Making Purchase Decisions

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Jan 21, 2020
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Purchase Decisions, Chart of the Week, Behavioral Finance
Hat tip to Erica Pavlik of Neuqua Valley High School who reached out and suggested we curate resources to help "Teach the Triangle," an instructional idea created by her principal, Lance Fuhrer. Here's how she explained this concept:  "It is like your data crunch but taken a step farther. It collects three types of data (image, article & graph) on a similar topic and ask students one question: What can you infer from this?" We thought we would give it a go. Here are three resources...

What Is NGPF Curriculum's Lexile Level?

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Jan 07, 2020
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Tips for Teachers, Behavioral Finance, Teaching Strategies
What lexile level is NGPF’s curriculum? We’ve been getting this question a lot lately, so we are going to break down the different lexile levels in a NGPF lesson and give you teacher tips for differentiation along the way! NGPF’s curriculum is rigorous and we strive to prepare your students for college and adulthood, so our curriculum’s lexile levels have a wide range in the hope we are reaching all learners as they begin their personal finance journey. What is a lexile...

Chart of the Week: Auto Loan Terms

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Jan 06, 2020
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Budgeting, Behavioral Finance, Chart of the Week
This chart ties in well with today's Question of the Day which equates longer auto loan terms with higher interest costs for borrowers.    Questions: Which loan term has grown most dramatically in the last decade? Which loan term has declined the most? Why do you think that seven year loan terms have become so popular?  Do you think that having a long-term car loan is a wise choice? Why or why not? ---------------------- Here's our question of the day about the increased cost...

QoD: What are the top New Year's Resolutions for 2020?

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Jan 05, 2020
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Behavioral Finance, Question of the Day
Questions: Do you think that making New Year's resolutions are a good idea? Explain.  How would you categorize the items that typically show up on a list of popular resolutions?  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...