Category: Credit Cards

QoD [UPDATED]: Excluding home loans, what are the three largest debts for American consumers?

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Jan 13, 2020
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Student Loans, Question of the Day, Credit Cards, Research
Answer:  Student loan - $1.5 trillion Auto loan - $1.32 trillion Credit Card - $0.85 trillion Questions: Which type of credit has grown the fastest from 2004-2019? Why do you think this is the case?  Using the chart, estimate the growth rate (in trillions of dollars) between 2004-19 for student loans, auto loans and credit cards.  What impact did the Great Recession (2008-09) have on debt levels? Do you think people tend to borrow more or less when a recession occurs? ...

QoD: You're new to credit and you don't pay your credit card bill for months. It gets sent to a collections agency. How much will your credit score decline?

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Jan 08, 2020
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Credit Scores, Question of the Day, Credit Cards
Answer: 224 points (from 599 to 375) Explanation: Your score sank 224 points. A credit card in collections means your credit score is now in the high-300s.  Questions: Why do you think not paying your credit card bill for months has such a big impact on someone who is new to credit? What do you think are the reasons that people can’t pay their credit card bills? Identify at least 3 reasons. What are strategies you can come up with to make sure that you are always in a...

Credit Card QoD: How much does the average household with credit card debt pay in interest cost annually?

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Jan 05, 2020
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Question of the Day, Credit Cards, Research
Holiday shopping can sometimes mean credit card debt, so this question takes a look at the annual interest cost a family pays when they carry a balance on their credit card.  Answer: $1,505 Methodology: Average household credit card debt of $8,707 (WalletHub analysis) multiplied by an average credit card interest rate of 17.30% (creditcards.com) Questions: Why do you think that so many Americans have credit card debt, meaning they don’t pay the full balance on their credit card...

Video Resources: Brief History of Credit Cards, Will Power and Kids in a Cashless Society

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Jan 02, 2020
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Credit Cards, Video Resource, Behavioral Finance, Payment Types
Interesting videos that you may find useful to supplement your lessons.  Video: A Brief History of Credit Cards (or, What Actually Happens When You Swipe) Description: "What actually happens when you swipe your credit card? a16z general partner Alex Rampell helps solve the mystery, taking us from the beginning of the credit card revolution (including its hometown of Fresno, California) and on the journey of how both information and money travel… through the five parties...

Best of 2019: Most Visited Unit Pages

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Dec 30, 2019
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Checking Accounts, Paying for College, Credit Cards, Credit Reports, Career, Investing, Insurance
 Our Unit Pages are the most visited pages on the NGPF website. Why? It provides teachers with all of the NGPF resources available on a given topic (unit) on ONE page. So, whether you are looking for 45 minute lessons or just individual resources to supplement your existing lesson, you can find them on the unit page.  Here were the unit pages that received the most page views: Checking Budgeting Taxes Types of Credit Investing Career Paying For College Saving Insurance  Managing...

Best of 2019..NGPF's Questions of the Day

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Dec 25, 2019
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Question of the Day, Behavioral Finance, Budgeting, Credit Cards, Credit Scores, Current Events, Investing, New Products
If you receive our daily blog updates, you know that we produce a Question of the Day every Mon-Thursday during the school year..which amounts to about 160 questions. Here are the 10 questions that garnered the most pageviews in 2019. See how many you can answer correctly: What's the average credit score needed to rent an apartment?  What percent of people age 75 and older are still working? What percent of U.S. millionaires are professional athletes? What percent of 18-34 year olds are...

FinCap Friday: Split Your Payment in a Split Second

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Dec 19, 2019
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Credit Cards, Current Events, FinCap Friday
This week's FinCap Friday takes a look at the latest trend in borrowing for purchases that aren't big ticket items. Borrowing money to buy electronics, clothes and makeup is growing more and more common. Fintech companies are paying attention to the data that shows younger shoppers are trying to avoid debt, but still struggle to come up with enough money to make a full purchase up front. Enter: Installment Payment Plans. This is a new spin on layaway shopping and interestingly enough it allows...

Chart of the Week: What's the relationship between credit card balances and credit scores?

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Nov 20, 2019
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Chart of the Week, Credit Cards, Credit Scores
Definitely some surprises here...   From Experian, State of Credit Cards:    Questions:  Those with _______________ credit scores have the highest credit card balances while those with ______________ credit scores have the lowest credit card balances.  What has been the overall trend with credit card balances for all credit scores since 2011?  Do you think that taking out more credit on a credit card is a sign of consumer optimism or pessimism?  Consumers...

Weekend reading list (Nov.15-17)

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Nov 15, 2019
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Personal Finance, Investing, Credit Cards, Generosity, Behavioral Finance
Financial education Inspiring story of Chloe McKenzie, founder of BlackFem, and her mission to bring finance education into disadvantaged communities (OZY) Economics Never thought I would see this in my lifetime...the U.S. is now a net exporter of crude oil (Axios)  Story-telling I'm a huge fan of Morgan Housel (here's our podcast) and his weekly releases on the Collaborative Fund blog. His latest is about storytelling and he crafts five story lines that he says running through...

Throwback Tuesday QoD: How much will consumers pay in interest to credit card companies in 2019?

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Nov 11, 2019
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Credit Cards, Question of the Day, Research
Answer: $143 billion Average credit card debt of $830 billion (Experian study, 2019) multiplied by an average credit card interest rate of 17.27% (creditcards.com) Questions: Why do you think that so many Americans have credit card debt, meaning they don’t pay the full balance on their credit card statements every month? Does credit card debt carry a high or low interest rate? What ideas do you have on how you can avoid getting into credit card debt where you can't pay your balance off...

Reading List for November 8-10

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Nov 08, 2019
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Financial Literacy, Entrepreneurship, Payment Types, Credit Cards, Investing, Cryptocurrencies, Retirement
Financial and Economic Literacy People don’t know as much as they think they know about money. (Kiplinger) Teens think economics is an important subject, yet they don’t grasp key concepts even after taking an economics class. Here are some suggestions for making the education more effective. (PRNewswire) The CEO and founder of Pliquit wrote an article for Forbes encouraging banks to step in and take advantage of Gen Z’s consumption of media to fill their financial literacy...

Reading List for November 1-3

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Nov 01, 2019
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Entrepreneurship, Economics, Investing, Credit Cards, Paying for College, Retirement, Financial Scams
Entrepreneurship  An excellent retrospective on the contributions of Peter Drucker on what would have been his 100th birthday. (INC) How does owning your own business or working in the gig economy impact how your kids will view the world of work and finances? (WAPO)   Economics Economics news this week included another Federal Reserve Rate cut. What does that mean for your credit card, mortgage, etc.? (USA Today) And the October Jobs report came out today. USA Today explains the...

Reading List for October 25-27

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Oct 25, 2019
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Investing, Financial Literacy, Economics, Credit Cards, Credit Scores, Career
Investing We will start this week’s list with this mind-blowing headline: “Tesla overtake GM as most valuable automaker.” (Reuters) Comparing today’s IPO environment (the “Not-Com Bubble?”) to the “dot-com” bubble of 2000. (The Atlantic)   Financial Literacy A look at programs that bring experiential, hands-on learning about money into the classroom. (Reuters) The New York Times reviews three of the most popular personal finance books....

QoD: Order these based on which are most to least important to millennials: Instagram likes, credit scores, YouTube followers.

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Oct 16, 2019
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Question of the Day, Credit Cards, Credit Scores, Research
Hat tip to Beth Tallman for sharing this press release that led to this question of the day.    Answer: Credit Scores (59%) Instagram followers (48%) YouTube followers (40%) Here's the complete results:  Questions: Why is it important to increase your credit score?  Looking at the list in the chart above, which of these ratings/scores will have a financial impact? Why do you think that so many people would place higher value on increasing their social media likes...

QoD: For credit card users who have called customer service,._____ in 10 got a fee waived, ______ in 10 got a lower interest rate and _____ in 10 got a higher credit limit.

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Oct 06, 2019
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Credit Cards, Question of the Day, Current Events, Research
Sometimes it just takes a little initiative to save money:) Answer; 6 in 10 have gotten a fee waived before, while 3 in 10 have received a lower APR and 9 in 10 have been granted a higher credit limit.” Questions Do you feel comfortable calling customer service when you have an issue with a company? Does seeing this information about how customers save money by calling customer service make a difference in your answer to #1? Why do you think that credit card companies are so willing to...