Category: Credit Cards

Chart of the Week: Credit Profiles for 18-22 Year Olds

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Sep 12, 2018
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Chart of the Week, Credit Cards, Student Loans, Behavioral Finance
I love this chart from a recent Wall Street Journal article because it captures the state of credit for young people just getting started in building their credit history:    Questions: What credit type is most prevalent among 18-22 year olds? 23-29 year olds?  Which type of loan has the highest balance for 18-22 year olds? 23-29 year olds?  At what age do you think you will have the following: Credit card Retail store card Auto loan Student loan Which type of...

Question: What is #1 reason that people give for paying their credit card bill late?

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Sep 05, 2018
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Question of the Day, Credit Cards, Behavioral Finance
Answer: I forgot to make the payment Questions: Why do you think that so many people forget to pay their credit card bill?  What do you think are some of the consequences of not paying your bill on time?  What are steps that you can take so you are not one of those "forgetful" people who don't pay their bills on time?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (NerdWallet):...

Question of the Day: How long does it take to establish a credit history?

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Aug 26, 2018
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Credit Cards, Credit Scores, Question of the Day, Research
Answer: 3-6 months Questions: What questions would you ask a stranger who wanted to borrow money from you?  Those questions match up well with what is captured in a credit report.  In your own words, what do you think a credit history is?  Why do you think it might be important? Who might be interested in your credit history?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers...

Question of the Day: How much did consumers pay in interest to credit card companies in 2017?

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Aug 14, 2018
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Credit Cards, Research, Question of the Day, Current Events
Answer: $104 billion Questions: Why do you think that so many Americans carry 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 every month?  Imagine using your credit card to buy $100 of clothes. If you weren’t able to pay off that purchase for a year and your...

When Do You Hope To Achieve These Financial Milestones?

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Jul 31, 2018
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Budgeting, Credit Cards, Current Events, Research
Financial milestones present amazing opportunities to get young people to pay attention. I often get asked by parents about how they can engage their children when it comes to money. Milestones present these opportunities: On trips to the supermarket...let's make a shopping list, compare prices (brand vs. generic) and discuss all the traps that have been set (great video from PBS 2 Cents about this) Opening that first bank account...review the fee schedule for the account, described differences...

What I'm Reading This Weekend (June 30-July 1)

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Jun 29, 2018
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Personal Finance, Economics, Student Loans, Current Events, Taxes, Credit Cards, Credit Scores
Economics Here is an interesting, though depressing look at the employment trends and lack of upward mobility among workers in the lowest quartile. The markets seem to be taking the impending trade war seriously this week. Student Loans Student debt forgiveness is good news. The bad news? Forgiveness comes with a tax bill. Employers offering help repaying student loans to attract workers in a tight labor market. Personal Finance Taxes: Have you heard about the post card sized 1040? Here is...

Tech Tool Review: Celebrity Calamity

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May 23, 2018
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NGPF Fellows, Tips for Teachers, Credit Cards
Teachers who attend our Summer Institute in Palo Alto become NGPF Fellows the following school year -- this Fellowship includes presenting with us at PD sessions, offering NGPF feedback on products, writing guest blog posts, ... the list goes on. Today features a Tech Tool Review from Martha Somers of Broad Run High School in Ashburn, VA. Here's what Martha has to say... Tech Tool: Celebrity Calamity by Financial Entertainment Cost: Free Use Case:  Useful as a game at the end of the...

Question of the Day: What percent of consumers say they’ve gone into debt to pay for a vacation?

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May 22, 2018
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Question of the Day, Credit Cards, Personal Finance
Answer: 74%, with an average balance of $1,108 Questions: Do you think going into debt to pay for a vacation is a good idea? Explain your reasoning. Why do you think that so many people do it (borrow money to go on a vacation)? What advice would you give to a friend or colleague who’s looking to budget for a vacation but wants to avoid going into debt over it? Behind the Numbers (from MarketWatch):  "Americans spent an average of almost $2,000 on their 2017 summer vacations,...

Question of the Day: What percent of students learn about credit cards before leaving high school?

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May 21, 2018
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Credit Cards, Question of the Day
Answer: 30% Questions: If a friend asked you for advice about credit cards, what would you tell them?   What is the first word that comes to mind when you hear the word “credit card?” How have you learned about credit cards? When do you anticipate getting a credit card? Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (Credit Cards Explained) Nearly half of the 2,500 respondents...

What I Am Reading This Weekend (May 19-20)

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May 18, 2018
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Credit Cards, Current Events, Student Loans, Behavioral Finance
Busy week..Happy Friday! Here's what caught my attention that I'll be reading this weekend. Enjoy! Student loans It's a new perk in many companies..but should companies help their employees pay off their student loans? The Atlantic weighs in.  Federal student loans for the new school year are set and they are....here's the article that describes why the rate is rising.  He was an expert on student loans, until he wasn't. Inside the story of the mysterious Drew Cloud. ...

What’s New With……Credit Management?

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May 17, 2018
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Identity Theft, Credit Cards, Credit Scores, Credit Reports, Mortgages
This second quarter update deals mostly with credit cards and credit scores, but we touch on managing mortgages and financial infidelity. Credit Cards/Score Ever wonder what to do with that credit card you never use? There is not necessarily one answer for all situations. Do you know exactly what happens when if you make a late credit card payment? How about what happens when you don’t pay off your credit card balance in full? This one might make you think twice about opening a joint...

Infographic: How is technology changing the credit scoring process?

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May 16, 2018
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Credit Scores, Credit Cards, Current Events, Research
Visual Capitalist is out with their 2nd infographic demonstrating how tech is changing the credit landscape. It highlights two major changes in the credit scoring system which are being driven by "Big Data." These tweaks increase the predictive ability of whether a consumer's will repay a loan. Here they are: 1) Trended data 2) Alternative data Questions: How is trended data and alternative data different from the current credit scoring system? Analyze three of the alternative data sources...

Question of the Day: What do cardholders fear most when using a credit card?

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May 15, 2018
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Credit Cards, Question of the Day, Research
Answer: Security concerns (skimming, ID theft), noted by 26% of respondents Behind the numbers (from Credit Cards Explained): Questions: Do you know anyone who has had security problems with their credit card?  Who is responsible for the losses if someone else runs up big bills on YOUR credit card?  What is/will be your biggest fear when using a credit card? How can people overcome their fears of #2 (accruing too much interest) and #3 (relying too much on credit)?  Click...

What I am Reading (May 12 and 13)

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May 11, 2018
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Stocks, Student Loans, Credit Cards, Paying for College, Research, Current Events
Filling in for Beth this week with the weekend reads...Enjoy! Across the pond...the Bank of England launched a program to improve financial literacy. "The econoME programme will give young people greater economic and financial awareness, equipping them with the skills to make more informed decisions about personal financial choices." How did the Great Recession affect those with student debt? Hint: It delayed a lot of decisions.  90% of Americans believe that personal finance...

What's New With.......Credit?

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May 10, 2018
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Current Events, Credit Cards, Personal Finance, Mortgages
Nerdwallet research shows average household debt for 4Q17 increased slightly in every category but auto loans (see chart below*). Peer-to-peer lending may not be as disruptive to credit markets as once thought. Here is the lowdown on what higher interest rates will mean for borrowers. Credit Cards You might want to consider these tips to get your financial house in order before applying for a credit card. Credit card companies and other lenders are facing increasing delinquencies and defaults...