Mar 20, 2019
Video Resource, Credit Cards, Financial Scams, Compound Interest, Investing, Stocks
I wanted to share some cool new videos that we have come across in our travels:
Three Psychological Tricks to Help You Save Money (TED Talks; 5 minutes); hat tip to Yanely for connecting us to Wendy; hope to have her on podcast in the future.
Backgrounder on the Payday Lending industry (PBS NewsHour; 4 minutes); good opportunity to discuss the financial pitfalls of payday lending, it's fee structure and the role of regulation in consumer protection.
Mar 15, 2019
Paying for College, Behavioral Finance, Economics, Insurance, Investing, Financial Literacy, Taxes
Happy St. Patrick's Day! Happy Reading!
The story of the week has to be this one about the college entrance bribery. (WAPO) (Inside Higher Ed)
While we are on the subject, this next article highlights the class differences in the college experience as poor kids tell rich colleges what they are experiencing. (EdSurge)
And most people are surprised to learn how low the college completion rate is: (NPR)
Student Loan Hero surveyed 1000 people across all generations about their debt. One...
Mar 11, 2019
Question of the Day, Investing, Stocks
Hat tip to Beth Tallman for the idea for this question!
Snap just marked its second anniversary since going public on March 2, 2017 at a price of $17/share. Today it trades at $9.48, a 44% drop from its IPO price so investors who bought the IPO hype are licking their wounds.
Facebook went public on May 18, 2012 at a price of $38/share. Two years later, it was about $61/share, a 60% increase from its IPO price and as of March 8, 2019 the stock trades at $169. ...
Mar 08, 2019
Personal Finance, Investing, Financial Literacy, Economics, Employment, Career
Interesting news here: Philadelphia just banned “cashless” stores. Will any other cities follow? This could spark an interesting discussion. The WSJ article includes graphical representation of who spends cash and when. (WSJ)(NPR)
This blog summarizes highlights from this month’s WSJ Journal Report on Investing in Funds and ETFs. One key article answers the top six questions about 529 plans. (WSJ)
More about Lyft’s IPO and how...
Mar 01, 2019
Personal Finance, Insurance, Investing, Economics
Michele Singletary at WAPO talks about the importance of getting kids to be financially literate and what parents can do to promote this. The article features JumpStart and checkmyschool.org.
Personal Finance on an Index Card: from Harold Pollack. (University of Chicago)
This one got lots of social media coverage: NFL player teaches finlit at an Ivy League School! (WSJ)
Some sound advice suggesting quarterly money reviews with your S.O. and how to conduct them....
Feb 22, 2019
Financial Literacy, Behavioral Finance, Budgeting, Career, Paying for College, Investing, Retirement, Taxes
“Five Things High Schoolers Need To Know More Than Computer Science” from (Forbes). We all know what one of those things is!!!
The costs of being a woman: Why women end up with less money. (Beth Kobliner)
An interesting series of charts from Visual Capitalist shows where the breakdown of investments in 2018
Lyft has not become a verb like “Uber” has, but it looks like they will beat Uber with its IPO. (CNBC)
Feb 19, 2019
Chart of the Week, Investing, Stocks, Behavioral Finance
From Retirement Field Guide, comes a chart showing the stock chart for an S&P 500 ETF (which tracks S&P 500 Index) from 2012 to present with quotes from noted pundits.
Click on the chart to get a larger version that is easier to read:
How much has the S&P 500 risen over this period?
Why do you think that so many experts may have been expecting a crash in 2012? (Hint: what happened a few years earlier?)
What is it about the stock market that makes us...
Feb 18, 2019
Interactive, Retirement, Investing, Index Funds
We all know how difficult it is to get kids to think about investing for retirement but also know how important it is to convince them to start investing ASAP given their youth and the magical powers of compound interest. So, what's the hook? What young person doesn't dream of retiring early which is kind of ironic given that many of them have these thoughts before they even have their first job. Stay with me. This focus on early retirement, which has gained more prominence recently with the...
Feb 12, 2019
Interactive, Investing, Stocks, Index Funds
Hat tip to Vadas at Abnormal Returns for pointing out this article from Behavioral Investment about why we make stupid investment decisions.
The article lays out nine reasons why normally rational, thoughtful people make what he describes as "sub-optimal" investment decisions. As I read through the list, I realized how our investing game STAX (over 160,000 game plays since November launch) gives students an opportunity to make a lot of stupid decisions which they hopefully will learn from...
Feb 11, 2019
Just One Resource, Investing, Retirement
In this weekly blog post, the Curriculum team will highlight Just One Resource from our NGPF collection that maybe doesn't get the attention it deserves. Use it this week or bookmark it for later.
[The Resource] ROLEPLAY: Sign Up for a 401(k)
The Gist: Students play the role of a new college graduate who has to pick investments in their first ever 401(k)!
The Best Parts:
Students see how much money they have in their monthly budget to allocate towards...
Feb 08, 2019
Budgeting, Career, Investing, Economics, Paying for College, Advocacy
New bill would require students in Texas to pass financial literacy class. (KXAN)
Paying for College
A NEFE study shows that mandating personal finance education DOES make a difference when it comes to borrowing for college.
Did you know that February is Financial Aid Awareness Month? Look out for more on this subject this month!
Looks like the CFPB will not pursue any rules to crack down on payday lenders as proposed in 2016. (NPR) (NYT) This is open for...
Feb 01, 2019
Economics, Investing, Taxes, Retirement, Budgeting
A whopping 304,000 jobs were added in January, but December’s 312,000 was revised down to 222,000. Get all the details here: (NYT)
State Street basically invented the ETF, so why has its share of the ETF market steadily declined over time. (WSJ)
December market performance was the worst since the Great Depression, but January was the best in 30 years!!! Talk about volatility! (CNBC)
Do your budgeting lessons include covering hospital bills? These stats...
Jan 31, 2019
FinCap Fridays, Investing, Current Events
In this FinCap Friday, we highlight one of the most speculative investments available today. Some wonder whether investment is even an appropriate term for it, while others call it the "greatest scam in history." It may not be the talk of the town that it was late in 2017 but it still has its fans who believe it is the currency of the future. Play this FinCap Friday and find out why one pizza buyer might be suffering from some indigestion.
If you're short on time, try...
Jan 22, 2019
Chart of the Week, Investing
For your investing unit, this chart below shows the annual returns of the S&P 500 from 1927 through January 19, 2018.
Since investors talk in terms of returns when talking about stocks, I recommend going into detail about exactly how a return is calculated for a stock over a given period:
(End of period price for index - beginning of period price for index) divided by the beginning of period price.
So let's show an example and calculate what the return for 2019 has been for the...
Jan 21, 2019
Investing, Stocks, Behavioral Finance
Here's a Kahoot ("Stock Prices: Up or Down?") for students to test their intuition on how news about popular companies affects their stock prices on the day of the announcement. Students love making predictions and this game has some surprising results which will lead to some interesting discussion. Each question takes the form of company news and students predict how the stock price moved on the day the news came out.
What's the objective of this interactive? For students to...