Question of the Day: Where do consumers use their debit cards most? a) Fast-food dining b) Gas station c) Supermarket
Answer: Supermarket, with almost 50% of consumers choosing to use their debit card.
From Visual Capitalist:
Questions:
Why do you think people choose debit over credit when it comes to shopping at supermarkets?
How do you decide whether to use cash or your debit card when buying something?
Why do you think credit cards are most popular at department stores?
Click here for the ready-to-go slides for this Question of the Day that you can...
What's New With......Checking?
Cash or No Cash?
Have you noticed your favorite businesses going cashless? How much cash do you carry? Read how David Gelles of the New York Times decided to give the cashless lifestyle a try.
If we are moving to go cashless, then this news about cardless ATMs may have a limited lifespan.
Checking Account Fees and Features
You are not imagining it: checking account fees are on the rise.
You may have to search harder, but free checking accounts still exist.
As fintech evolves...
What I'm Reading This Weekend (2/17-2/18)
What happens when tight labor markets meet tax cuts meets increased government spending? The I-word returns as a key concern of central bankers. After a decade of slumbering 1-2% annual inflation figures, expectations reset for what's ahead as well (which might explain the recent stock market drop):
January CPI data was released Friday. Consumer prices rose more than anticipated in January.
The NYT has an informative article on How Inflation Works.
USA Today tries to help us...
Question of the Day: Is there a fee if you don't have enough money in your bank account to cover a debit card transaction?
By Tim Ranzetta
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Jan 08, 2018
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Checking Accounts, Current Events, Research, Question of the Day, Debit Cards
Answer: It depends.
If you have overdraft protection on your account, the average fee is $35
If you do not have overdraft protection, there is no fee but you will not be able to complete the transaction.
Questions:
Do you have/would you choose to have overdraft protection for your bank account? Explain.
What are strategies that you can utilize to avoid spending more than you have in your bank account?
Would you be ok if your debit card transaction was turned down at a store? ...
Credit Card, Debit Card or Checks: What Is Most Prevalent Form of Payment By Americans?
By Tim Ranzetta
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Jan 02, 2018
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Credit Cards, Current Events, Question of the Day, Debit Cards, Checking Accounts
Answer (from Federal Reserve 2017 Payments Study): Debit cards
Number of transactions in 2016:
Debit cards: 73.8 billion
Credit cards: 37.3 billion
Checks: 17.2 billion
Interestingly the fastest growing area in terms of transactions was with credit cards:
Credit card payments registered the highest growth rate by number (10.2 percent) among the core payment types from 2015 to 2016, up from a growth rate of 8.1 percent from 2012 to 2015. Debit card payments registered the second highest...
Digging Deeper: Is Gen Z Doomed to Fail at Budgeting?
By Beth Tallman
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Dec 18, 2017
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Budgeting, Debit Cards, Credit Cards, Purchase Decisions, Tips for Teachers, Article, Current Events
The students in our classrooms today can make it through life without ever touching cash. Heck, they don’t even have to take a debit or credit card out of their pockets….a few taps on the phone that is always in their hand and they can pay for things using ApplePay or the Android equivalent, or pay back their friends using an PayPal or Venmo. A student of mine from China said this is how his generation pays for everything back home. Bottom line: it is just...
Question of the Day: How many monthly withdrawals can you make (without penalty) from a savings or money market account?
By Tim Ranzetta
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Nov 09, 2017
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Question of the Day, Savings, Checking Accounts, Debit Cards, Policy
Answer: 6
Hat tip to Jessica and her PLC group, Diane Mondoro, Steve Penley, Vicky Livesay, and Kayla Bousum for generating this question. (Sign up for the next round of our PLCs here)
On to the details:
From NerdWallet:
Regulation D, also known as Reg D, is a Federal Reserve Board rule that puts a limit of six transactions per month on certain transfers and withdrawals from your savings or money market account. If you go over the limit, the bank or credit union can charge you a fee, close...
Common Cents: Avoid Withdrawing Money From Out-of-Network ATMs
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Oct 13, 2017
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Article, Personal Finance, Current Events, Checking Accounts, Debit Cards
The creation of the ATM saved quite a lot time for bank customers, as they no longer had to wait in line at bank branches to withdraw their money. Could escalating out-of-network ATM fees lead to the decline of withdrawing cash in the near future? I predict that the recent trend of peer-to-peer payment could lead to the eventual—and most unfortunate—downfall of ATMs starting in large metropolitan areas. In these markets, more and more people are opting out of using cash and instead...
Another Step Towards A Cashless Society...
VISA providing incentives to small business owners to NOT accept cash. From Denver Post:
For years, mom-and-pop shops and food trucks alike have shuddered at the expense of credit card transactions. It’s not uncommon, for example, for small businesses to have minimum dollar amounts for card purchases. Some still don’t accept them at all or gently inform customers they prefer cash.
Credit-card behemoth Visa launched a campaign to change that Wednesday. The campaign to go cashless — or the...
What Is the Most Common Form of Non-Cash Payments?
Answer: Debit cards (by a long shot)
From Federal Reserve (hat tip to Big Picture Blog):
_______
On the subject of debit cards, check out the NGPF Lesson: Pick A Payment Method where your students will learn the various pros/cons of different payment methods.
...
What I'm Reading This Memorial Day Weekend
By Tim Ranzetta
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May 26, 2017
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Credit Cards, Behavioral Finance, Index Funds, Debit Cards, Current Events
I love long weekends to catch up on some reading, here’s what has my attention this week:
The Other Difference Between Jeans and Mutual Funds (Bloomberg); identifies reasons for Vanguard’s recent domination of the mutual fund industry: “The majority of funds are actively managed and 80 percent or more of them routinely fail to beat their benchmarks net of fees. Clearly, there’s an incredibly low probability that investors will get what they’re paying for. That realization...
What Are We Watching? Three Of Our Latest Curated Videos
By Tim Ranzetta
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Apr 18, 2017
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Checking Accounts, Research, Credit Cards, Savings, Debit Cards, Payment Types, Teaching Strategies
The NGPF Team is always scouring the web for videos to add to our Video Library. Here are the latest that the team has uncovered:
Pay Day 101: Direct Deposit (from Young Illinois Saves), duration of 3:48, provides a good description of how direct deposit works from the perspective of young adults:
Questions:
In your own words, what is Direct Deposit?
How can you set up Direct Deposit?
Is Direct Deposit safe?
What are the benefits?
Which of the benefits of Direct Deposit means the most to you?...
Resource Lists for Financial Educators (courtesy of Barbara O'Neill of Rutgers Cooperative Extension)
By Tim Ranzetta
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Mar 28, 2017
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Activities, Credit Scores, Career, Paying for College, Research, Budgeting, Credit Cards, Identity Theft, Personal Finance, Investing, Mutual Funds, Savings, WebQuest, Financial Literacy, Student Loans, Checking Accounts, Debit Cards, Payment Types, Stocks, Current Events, Insurance, Video Resource, Case Study, Credit Reports, Employment, Quizzes, Entrepreneurship
What does a distinguished professor do during her sabbatical? Curate personal finance resources, of course! In this blog post, Barbara O’Neill shares the fruits of her hundreds of hours of labor in putting together three awesome resource lists (see bottom of post for links to her lists), including what what she considered the “best of the best” from the NGPF library. As she describes below, the purpose of her odyssey was to replenish her “well” of creative...
Question: What Financial Products Should A Young Person Use To Manage Their Money?
By Tim Ranzetta
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Mar 23, 2017
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Writing assignment, Question of the Day, Research, Budgeting, Credit Cards, Checking Accounts, Debit Cards, Teaching Strategies
Hanging out on the Boglehead Forum today skimming the topics that have received the most replies. Forums seem so “old school” in this age of social networks (Facebook, Twitter, SnapChat) but the ones that have survived and thrived have done so for a reason. For those not familiar with the Boglehead Forum, the forum is named in honor of John Bogle, founder of Vanguard Investments, and attracts knowledgeable, thrifty investors passionate about sharing their knowledge in a variety of...
Video Resources: Avoid Those Checking Account Fees
It’s often the first financial product that a young person will use. Maybe they start with a savings account but eventually they graduate and pair their savings account with a checking account. In that process of setting up this new account, the customer will be asked (or they should be) whether they would like “overdraft protection.” The term sounds innocuous and better yet lures them in after all who doesn’t want to be protected. Have your students watch one or more of...
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