Oct 19, 2016
Credit Cards, Question of the Day, Research, Debit Cards, Purchase Decisions, Current Events, Chart of the Week, Article
From the Economist:
Economist article provides good description of interchange fees paid by merchants to card companies (and ultimately paid by consumers):
American consumers favour debit and credit cards over cash by more than two to one. But this convenience comes at a cost. The seller is charged a fee for every card purchase: in America, typically 0.5% to 3% of its value. These fees are set by payment-card networks, such as Visa and MasterCard and collected by card issuers, such as Wells...
Oct 06, 2016
Debit Cards, Policy, Research, WebQuest, Checking Accounts, Purchase Decisions, Current Events
New regulations are on their way..here’s an FAQ to help you and your students sort it all out:
How big is the market for prepaid cards and who uses them? (Atlantic):
The market for prepaid debit cards has grown dramatically in recent years: The number of people using the cards in addition to their checking accounts increased by 50 percent between 2012 and 2014. According to a report from Pew by 2014, around 23 million Americans were regularly using reloadable cards, and more than...
Sep 12, 2016
Activity, Budgeting, Identity Theft, Savings, Checking Accounts, Debit Cards, Financial Scams
One trap I am constantly trying to avoid in my work is what I would call the “specialist’s mindset.” It comes from studying a subject for a long period of time and manifests itself in several ways, including heavy use of jargon and terminology. Oh, and it also comes with a belief that everyone somehow has a similar level of knowledge about your specialized topic. This leaves the specialist wondering why you might get a quizzical look when discussing the merits of index...
Aug 29, 2016
Payment Types, Question of the Day, Credit Cards, Debit Cards, Chart of the Week
Answer: 56% of millenials are comfortable not carrying any cash. Note how the older cohorts are less comfortable being without cash, although the median amount of cash that they want with them is actually quite low ($20-$25).
Here are some great follow-up questions to ask your students about this resource:
Why do you think millenials (age 18-29) are the most comfortable with not having cash with them? Why do you think that people who are 65+ years old are the least comfortable?
What is the...
Aug 18, 2016
Payment Types, Question of the Day, Debit Cards, Current Events, Chart of the Week
This chart from the Economist shows the dramatic differences in the use of card payments among various European countries (this is in number of transactions per person per year):
The Economist goes on to explain the differences:
“Swedes rarely handle cash; the volume of card payments has increased tenfold since 2000 and only one in five payments—5-7% if measured by value—are made in cash today. In much of northern Europe the situation is similar, with “no cash” signs increasingly...
Jul 25, 2016
Credit Cards, Credit Scores, Behavioral Finance, Identity Theft, Debit Cards, Current Events, Credit Reports, Audio Resource, Podcasts
Credit cards reign as one of the most ubiquitous financial products for consumers. Yet, they are often still not well understand by cardholders and non-cardholders alike. To bring some clarity to the credit card world, I was fortunate to have Nerd Wallet’s credit card guru, Sean McQuay, join me on this NGPF podcast to help answer such questions as:
Why are those 0% APR offers so prevalent?
Why can’t you find out the interest rate on your new credit card until it arrives in the...
Jul 20, 2016
Financial Literacy, Credit Scores, Behavioral Finance, Paying for College, Research, Budgeting, Credit Cards, Investing, Savings, Debit Cards, Current Events, Audio Resource, Quizzes, Podcasts
The FINRA Investors Education Foundation is out with the results of their 2015 National Financial Capability Study and who better to discuss the results than Gary Mottola, the head of research at the foundation. In this podcast, Gary supplies key insights from this comprehensive study including details on how millenials (and others) are managing their budgets, checking accounts, credit cards and student loan balances. He describes the quiz questions (test your knowledge here) from the...
Jul 12, 2016
Credit Cards, Credit Scores, Identity Theft, Debit Cards, Payment Types, Video Resource, Credit Reports
Under 2 minute video that can be a good lead-in to your credit card lesson to start a discussion about protecting your credit card information as well as what happens when someone steals your card information.
A multi-cultural opportunity here: A talk show focused on Indian consumers describes the basics of credit cards and credit scores in an entertaining way:
Credit Cards in three minutes from Virgin Money comes from Britain and is a fast-paced video focused on how to use credit...
Jun 23, 2016
Payment Types, Question of the Day, Research, Credit Cards, Debit Cards, Current Events, Chart of the Week
According to this infographic from Visual Capitalist, a cashless society is gaining momentum across the developed world. Here are some questions that you can use with your students to get the conversation going:
What are examples of non-cash transactions?
Which country has the largest percentage of non-cash transactions? Which continent?
From a government’s perspective, what is the advantage of a cashless society (hint: have to read the short article to understand this)?
Why do you think...
Jun 19, 2016
Activity, Behavioral Finance, Checking Accounts, Debit Cards, Teaching Strategies, Tips for Teachers
Just concluded my first week c0-teaching the summer bridge program for incoming freshmen at Eastside College Prep. I was reminded about the power of role play while observing my co-teacher, Bill Elmore. First, let me set up the lesson today on the importance of savings. We kicked off class with a discussion about why it is important to save money. They took a minute to write down their responses, shared with their neighbor and then we had a full group discussion. They hit on the key reasons,...
May 31, 2016
Current Events, Research, Investing, Savings, Financial Literacy, Checking Accounts, Debit Cards, Credit Reports
Here are some survey results that provide a good reminder of how much work we have left to do to create a financially literate populace. Why do we force them to learn these lessons from the “school of hard knocks” instead of educating them in high school or college?
From LendEDU 2016 survey:
43 percent of students surveyed could not name one major difference between a credit and debit card
23 percent of students surveyed could not name one major difference between a checking...
May 17, 2016
Podcasts, Budgeting, Financial Literacy, Checking Accounts, Debit Cards, Payment Types, New Products, Audio Resource
I enjoyed my recent conversation with Bill Dwight, Founder of FamZoo. Bill has been a source of wise counsel for me since starting NGPF (he’s practically a neighbor of mine) and I have benefited from his decade of experience and his common-sense approach. In this wide-ranging conversation, we discuss everything from Bill’s company FamZoo to raising five financially responsible kids to whether he prefers index funds or individual stocks. Bill’s domain expertise in the area of...
May 08, 2016
Identity Theft, Credit Cards, Debit Cards, Current Events, Video Resource
From Nightline (1:10 – 8:57):
“Even though they’re criminals, you’ve got to marvel at their ingenuity. You are about to see the extraordinary lengths to which identity thieves will go to steal your credit card information. So will those new chips on all of our cards make any difference? ABC’s Nick Watt tonight on what you can do to protect your money. Reporter: A gas station in Miami beach, Florida. Watch the chatty guy in the tight aquamarine polo. He points. The...
Apr 29, 2016
Research, Identity Theft, Checking Accounts, Debit Cards, Financial Scams
Disturbing news about the increased prevalence of skimming at ATM locations (from NY Times):
Skimming involves stealing debit card numbers by putting an illegal card reading device on an A.T.M. Criminals use the devices in tandem with hidden cameras that record personal identification numbers entered onto the keypad. They then make duplicate cards using the information and drain cash from bank accounts.
FICO Card Alert Service, which...
Apr 28, 2016
Behavioral Finance, Question of the Day, Checking Accounts, Debit Cards, Payment Types, Advertising, Current Events
Ask your students to solve the mystery by guessing what they would expect to see in the asterisk section about the conditions that need to be met to earn the 5%. Remind them that the average checking account today earns about 0.05%.
Here’s the fine print for your students to decipher:
Limited to balances up to $5,000 [Editor’s note: this caps their cost at $250 per year per account, which seems reasonable as a cost of customer acquisition)
15 or more debit card...