Category: Budgeting

QoD: What percent of product searches on the Amazon website do consumers include a brand name in the search?

|
Sep 17, 2019
|
Question of the Day, Budgeting, Purchase Decisions
Answer: 22% Questions: If you just looked at the searches that teens did on Amazon, what percentage do you think would include a brand name?  What product searches do you think consumers would look for a specific brand rather than just a generic search like "running shoes?" Do you ever buy store brand products (e.g., Kirkland, CVS, Sam's Club, Amazon)? Why or why not? Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom Behind the numbers...

Reading List for September 13-15

|
Sep 13, 2019
|
Current Events, Advocacy, Budgeting, Credit Cards, Investing, Insurance, Paying for College
Advocacy Many of you have seen this one, featuring a quote from BrianPage, but in case you missed it: (USA Today) "School probably didn't teach you much about money, here are 4 things you should know". A national survey by Experian of Gen Z found that 76% of them agree that a personal finance class should be offered in high school. (PRN Newswire) (CNBC) Michigan is considering legislation to allow practical math options to Algebra II, including personal finance. (thecentersquare)  ...

QoD: What's the average number of times that a person wears a specific piece of clothing?

|
Sep 09, 2019
|
Question of the Day, Budgeting, Behavioral Finance
Answer: 7 Questions: How often have you worn the outfit that you are wearing today?  One writer thinks about their clothing cost by analyzing their CPW (cost per wear calculated by dividing the cost by number of times that an item is worn). What do you think the CPW is for your favorite pair of shoes/sneakers? favorite jeans? What do you think social media's impact has been on clothing sales? Explain. Click here for the ready-to-go slides for this Question of the Day that you can use in...

Question of the Day: Which company is the largest user of internet bandwidth? a) YouTube b) Netflix c) Facebook

|
Sep 01, 2019
|
Question of the Day, Budgeting
Answer: Netflix Questions: Which websites/platforms do you watch most of your online video?  Has your watching behavior changed in the past 1-2 years? Explain.  Do you think this trend away from traditional TV to these streaming sites will speed up or slow down?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (Economist; sub. required):  "What Mr Bewkes missed, but Mr Hastings did...

Chart of the Week: Who's Buying Homes These Days?

|
Aug 27, 2019
|
Budgeting, Chart of the Week
From WSJ: This chart measures the percentage of home buyers by age from 2006-2018 and demonstrates the seismic impact left by the Great Recession. Questions: Do you hope to own a house someday? When do you hope to be able to buy it?  What would be a good headline to summarize the data in the chart? In what year does there appear to be the most dramatic change in the data? Based on the chart, what age group has seen the largest decline in home purchases? What are some possible...

QoD: ___out of 5 Americans tip and their median tip is __%.

|
Aug 27, 2019
|
Question of the Day, Budgeting
Answer: 4 out of 5 Americans tip and their median tip is 18%. Questions: What is your tipping policy? Is it consistent or does it depend on certain circumstances? Explain. Have you ever worked at a job where part of your compensation was based on tips? Did it affect how you treated customers?  What do you think are the factors that impact how much people tip? How do you think income, gender or age influence tipping practices? Click here for the ready-to-go slides for...

QoD: Which country has the most retail store space per capita: Australia, U.S. or Spain?

|
Aug 20, 2019
|
Question of the Day, Budgeting, Purchase Decisions
Answer: Questions: What do you expect these numbers in the U.S. to be in 10 years? Explain.  Do people shop more in the U.S. because of the large number of retail stores OR are there so many retail stores in the U.S. because people shop more here?  Of your last five purchases, how many were made at a physical store vs. online?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (from Irrelevant Investor): In...

Throwback Tuesday QoD: Groceries or Restaurants: Where are Americans spending more money?

|
Aug 19, 2019
|
Question of the Day, Budgeting, Purchase Decisions
Answer: Restaurants Questions: What do you think accounts for the trend you see in the chart? What percentage of meals do you/your family eat at a restaurant per week? From a cost perspective, how much do you think you can save (on a percentage basis) eating at home vs. going to a restaurant? For example, do you think it costs 10% less to eat at home? 40%? 50%? What might be other advantages to buying groceries compared to dining at restaurants? Click here for the ready-to-go slides for this...

NGPF Podcast: Andrei Smith discusses the car industry

|
Aug 09, 2019
|
Purchase Decisions, Podcasts, Budgeting, Behavioral Finance
I had Andrei Smith back on the podcast recently where we talked about what's ailing the car industry, the promise of autonomous and electric vehicles and the owning vs. leasing debate. He also shares his observations on the current zeitgeist in Silicon Valley when it comes to status symbols and car buying behaviors. Enjoy! Details: 0:00~1:14 Introduction 1:14~2:04 Current state of car dealerships 2:04~11:14 The slowdown in car sales  11:14~19:08 Introduction of electric car sales...

What's New With Budgeting (August 2019)?

|
Aug 05, 2019
|
Budgeting
Budgeting in the News Single mom and personal finance blogger Kumiko Love, aka “The Budget Mom,” came up with a novel budgeting method that was featured on GMA. She calls it the “Budget by Paycheck Method.” She reportedly used this method to pay off $77K of debt in 3 years. Her method is actually s a combination of the paycheck method, the calendar method, and the cash envelope method. Seems to me that this method is great for those that like to see everything spread out...

Chart of the Week: Spending Patterns By Education Level

|
Jun 11, 2019
|
Chart of the Week, Budgeting
Great series of charts from our friends at Visual Capitalist (hat tip to Brian Page for also tweeting this out) that analyzes spending by an individual's education level. Two charts are provided below: one for high school graduates, the other for college graduates.  High School graduate:  Explaining the chart: The chart is split into thirds:  Left side: Shows sources of income: salary, Social Security (some of these HS grads are seniors collecting Social Security, dividends...

QoD: Rank order from highest to lowest: percentage of people who....a) have an emergency fund, b) struggle to pay bills, c) live paycheck to paycheck.

|
Jun 10, 2019
|
Question of the Day, Budgeting
Answer (from Schwab Modern Wealth Report): Live paycheck to paycheck: 59% Struggle to pay bills: 44% Have an emergency fund: 38% Questions: Why do you think so many Americans live paycheck to paycheck? How much of it is an income problem compared to a spending problem?  If someone came to you and said "I want to stop living paycheck to paycheck," what questions would you ask them to try and understand their situation?  Why do you think it's so important to have an emergency...

Reading List for May 31-June 2

|
May 31, 2019
|
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...

QoD: In percentage terms, how many more items of clothing do people buy today compared to 15 years ago?

|
May 28, 2019
|
Question of the Day, Budgeting, Purchase Decisions
Answer: 60% Questions: Why do you think that young people are purchasing more clothing but keeping it for only half as long?  What impact do you think that social media has had on this trend?  How would you describe how your shopping habits when it comes to clothing?  Here's the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (Business of Fashion) This trend is partly driven by the young generation’s hunger for...

QoD: What is the top restaurant choice among teens?

|
May 27, 2019
|
Budgeting, Question of the Day, Purchase Decisions
Answer: Chick-fil-A Questions: What do you think makes a restaurant popular among teens? Name at least three factors.  What is your favorite restaurant?  Food is considered the number one spending priority for males and #2 for females. How much do you think YOU spend on food (snacks, drinks, meals) every month? How much of your monthly food spend would you call a "need" vs. a "want?" Here's the ready-to-go slides for this Question of the Day that you can use in your classroom....