Nov 16, 2018
Personal Finance, Behavioral Finance, Career, Paying for College, Investing
Personal Finance-credit and borrowing
Don’t get carried away with Black Friday shopping and fall for those store credit cards. They are NOT a good deal. (Washington Post)
Will mid-term election results have any impact on student loans? (Forbes)
We are always warning students about borrowing too much for college, but here are two pieces on a paper coming out in the journal Education Next that suggests some borrowing may help some students succeed. (WSJ and NPR)
Computer algorithms are less...
Nov 12, 2018
Investing, Behavioral Finance, Index Funds, Mutual Funds
Answer: Only 8% (All Large Cap Funds vs. the benchmark S&P 500)
Why do you think professionals struggle to "beat the market?"
Why do you think investors continue to invest their money with professionals despite their record of not being able to "beat the market?"
Your friend says "you are better off investing with professionals instead of buying a simple index fund (e.g., S&P 500) that matches the market return." Do you agree or disagree based on the data above?
Nov 09, 2018
Personal Finance, Investing, Parent Conversations, Cryptocurrencies
Could developing countries and M-Pesa teach the US how to address the issues of the unbanked and underbanked? (CNN Business)
PBS announces a new series on personal finance called "Talkin' Money Minutes" is looking for a sponsor. They will be 2-3 minutes in length and air between shows. (Business Insider)
Charles Schwab’s daughter discusses the huge financial gender gap that goes way beyond the pay gap, and what can be done to help correct it. (MarketWatch)
Nov 09, 2018
Podcasts, Investing, Index Funds
Paul’s passion for educating others about investing stems from his encounters with people who believed they couldn’t do it themselves. As a successful financial advisor, Paul had an unorthodox strategy to grow his business. He wanted to educate his clients so well that they would no longer need his services (and put him out of business). Needless to say, word of mouth spread about this incredible educator/financial advisor which ultimately led to a successful sale of his...
Oct 31, 2018
Index Funds, Investing
Earlier this week, NGPF and McKinney launched STAX, a game that will teach students that sometimes the best investment strategy is the simplest.
We built STAX after hundreds of conversations with educators, whose top 10 list of features included:
Easy to implement in the classroom: Teachers who beta tested STAX generally spent less than an hour prep time before using with their students. A Teachers Guide provides details on the mechanics of the game as well as helpful...
Oct 29, 2018
Investing, Research, Question of the Day, Personal Finance
Here's how much you need to invest monthly (and earn 7% annually) to get to $1 million:
Is this a financial goal of yours? Do you think it's healthy to have financial goals like this? Explain.
Why do you think that most people fall short of achieving this type of goal? What hurdles stand in the way?
Do you think that investing $500/month will be difficult when you have a full-time job? Explain.
A friend asks you what you think are three key factors to becoming a...
Oct 26, 2018
Economics, Investing, Credit Scores, Current Events
Have real home prices entered a cyclical downturn? What does that mean? (Bloomberg)
What impact is the limitation on SALT (State and Local Property Tax) deductions having on the housing market, especially in the Northeast? I’ll give you one guess. (Bloomberg)
The New York Times "Upshot" takes a look the mystery of today’s low wage growth in spite of very low unemployment.
NBC News examines whether people are better off economically since 2016.
Unemployment is low, but...
Oct 25, 2018
FinCap Fridays, Investing, Current Events, Index Funds
The lottery has captured the imagination of our country this week. Lots of daydreaming going on...what would I do with....? We know that only one person walked away with the $1.5+ billion prize in South Carolina (identity still unknown). What your students may not realize is that a lottery ticket is not the only way to become a millionaire. Yanely shares her tips on what it will take to be a millionaire by the age of 60 without having to invest in the next Apple or Tesla. Enjoy!...
Oct 21, 2018
Question of the Day, Financial Literacy, Personal Finance, Investing, Research, Current Events
Answers: Will vary
Listen to what financial security means to a cross-section of Americans in this Marketplace podcast (listen from 2:30-5:45)
How will you know when you have achieved financial security as an adult living on your own? When do you hope to achieve this?
What are the different definitions of financial security that you heard on the podcast? Does it surprise you that people can have such varying definitions of what it means to be financial secure?
Oct 19, 2018
Paying for College, Investing, Economics, Retirement
Paying for College
The majority of this week’s articles happen to be related to paying for college: the cost of college, student loan forgiveness, financial aid and how parents pay for college. I have also included a link to Beth Kobliner’s website and her series on paying for college, which you could recommend to parents.
After reporting that the “sticker price” of college keeps rising, the WSJ explains that the REAL cost is not.
A study by Sallie Mae finds that on...
Oct 19, 2018
Podcasts, Investing, Index Funds, Economics
Nick Maggiulli of Ritholtz Wealth Management writes a blog, Of Dollars and Data, which combines his love of markets with his gift for writing about finance in interesting ways. He makes difficult financial concepts more approachable to the masses using anecdotes and analogies that even finance newbies can understand. Yet, his blog also draws in finance experts who find value in his thought-provoking analysis. I’ve cited quite a few of his articles in the NGPF blog, and I...
Oct 17, 2018
Investing, Question of the Day, Chart of the Week, Mortgages, Research
Hat tip to A Wealth of Common Sense blog for this awesome data distilled from Case-Shiller/FRED index of home prices:
Positive is number of years that home prices rose in the period 1987-2018
Negative is the number of years that home prices declined in period 1987-2018
Biggest gain is the largest gain in home prices on a year-over-year basis.
Biggest loss is the largest loss in home prices on a year-over-year basis.
Annual Gains is the average annual gain in home prices over this...
Oct 12, 2018
Investing, Current Events, Economics, Paying for College, Math
Bringing you lots of relevant articles on investing this week, from current events (stock market drop this week and interest rate increases) to analysis of booms, busts, and advice.
Wednesday’s market drop as explained by the New York Times.
Here is an article from 2016 by Ron Lieber (NYT) that came up in my feed but is timeless advice relating to this week’s market movement.
Neil Irwin explains in his Upshot article (NYT) the upside of rising interest rates.
This one from...
Oct 11, 2018
FinCap Fridays, Retirement, Investing, Index Funds
How can you possibly engage high schoolers in a conversation about retirement? They haven't even gotten their first real job yet so it's not exactly on their radar screen. By highlighting the F.I.R.E. movement (that's Financial Independence, Retire Early) and the extreme examples of retirees in their 30s, we hope that gets your students thinking "How'd they do that?" That should spur a great conversation about savings rates and the importance of investing while you are young. ...
Oct 10, 2018
Question of the Day, Financial Scams, Investing
Do you have family or friends who buy lottery tickets? How often do they play? Have they ever won significant jackpots?
Do you think buying lottery tickets is a wise financial decision? Why or why not?
Would it surprise you to know that more people buy lottery tickets than invest in the stock market? Why do you think that is? Remember that overall long-term stock market returns are 7-9% annually while lottery tickets have a negative expected value.