Category: Investing

Reading List for October 25-27

|
Oct 25, 2019
|
Investing, Financial Literacy, Economics, Credit Cards, Credit Scores, Career
Investing We will start this week’s list with this mind-blowing headline: “Tesla overtake GM as most valuable automaker.” (Reuters) Comparing today’s IPO environment (the “Not-Com Bubble?”) to the “dot-com” bubble of 2000. (The Atlantic)   Financial Literacy A look at programs that bring experiential, hands-on learning about money into the classroom. (Reuters) The New York Times reviews three of the most popular personal finance books....

QoD: Which mutual funds have more investor dollars: actively managed funds or index funds?

|
Oct 20, 2019
|
Question of the Day, Investing, Research, Index Funds, Mutual Funds
This question should be asked as part of your investing unit as it requires some prior knowledge.  Answer: Index Funds Here's the ready-to-go slides for this Question of the Day that you can use in your classroom. Questions: If you saw an advertisement for a mutual fund that consistently “beats the market” (pick stocks that do better than the overall market), what questions would you ask?  90% of mutual funds that are active and trying to “beat the...

QoD: Coke vs. Pepsi: Which company's stock has performed better over the past five years?

|
Oct 14, 2019
|
Question of the Day, Investing, Research
Answer: Pepsi Questions What factors do you think contribute to the very different market performance of these companies? Which products do you personally prefer?  Would you make an investment decision based on your personal product preference? Pepsi also has diversified into the snack food business and owns Doritos, Cheetos and Sun Chips while Coke has diversified into the coffee business. Knowing this, which company do you think has better long-term prospects? Explain. Here's the...

Reading List for October 11-13

|
Oct 11, 2019
|
Behavioral Finance, Cryptocurrencies, Investing, Financial Scams, Career, Retirement
Behavioral Finance An interesting dive into gender and money: The Myth of the Frivolous Female Spender (NYT) FinTech A longer read from Knowledge@Wharton discussing how FinTech may be helping the underbanked and unbanked. The risk is that many of these services fly under any regulatory radar.   Crypto-currencies Mark Zuckerberg will face Congress to talk about Facebook’s proposed crypto-currency Libra. He will face a tough crowd, (Axios) and now several backers (Visa,...

QoD: Would you rather have $1,000,000 or start with a penny and double your money every day for 30 days?

|
Oct 08, 2019
|
Question of the Day, Savings, Compound Interest, Investing
Good question to show the power of compounding...of course be sure to tell them that no investment would double on a daily basis for 30 days;) Calculators not allowed!  Answer: Starting with a penny and doubling it every day compounds to $10.7 million after 30 days Day 1: You would have $0.02 Day 2: You would have $0.04 Day 3: You would have $0.08 Day 4: You would have $0.16... Day 30: You would have $10,737,418.24. Questions: How much would the penny have grown to on Day 29? How much...

Collaborate with Educators At NGPF Professional Development This Week (October 7-12, 2019)

|
Oct 06, 2019
|
Professional Development, Investing, Interactive
Here's what teachers are saying about our new Virtual PDs: "Keep it up. NGPF has been the most engaging PD I've attended in years." "I am absolutely inspired...I am more prepared to teach my students in the fall." "Great session! Loved it and will be back for more." We have a full slate of professional development opportunities this week for teachers. Each will help you earn credit towards NGPF Academy. All times listed below are Pacific Time.  Virtual Professional Development: a...

Reading List for October 4-6

|
Oct 04, 2019
|
Financial Literacy, Economics, Investing, Insurance, Paying for College, Retirement
Financial Literacy Perhaps we need to solve the innumeracy problem in the US in order to make any significant gains in Financial Literacy. (WAPO) Even if we are successful in requiring every high school student to take a personal finance class, what do we do about all of those past high school who need the same knowledge? Some suggest the responsibility fall to employers. (Pensions and Investments) Read all about NGPF's own Yanely Espinal! (MarketWatch)   Economics US manufacturing...

Activity Idea: Psychology of Investing

|
Oct 03, 2019
|
Investing, Activities, Behavioral Finance
Here's an activity I did with my class a few years back that helped simulate the psychological aspects of investing.  It's a pretty simple game with multiple ways that you could extend and increase its complexity. Game Instructions You are starting the game with a fictional balance of $100 This game will have 10 rounds The player with the highest balance after 10 rounds will be the WINNER! Game worksheet  How each round proceeds:  Each student independently decides if they...

Interactive: How much money would you save if you brewed that coffee yourself?

|
Sep 29, 2019
|
Interactive, Investing, Purchase Decisions, Budgeting
Hat tip to Jessica for finding this resource which allows students to tweak variables to find out how much they can save through D-I-Y coffee. It also provides opportunities to discuss investing as one of the variables is "investment return."  Here are the variables (the dark rectangles are calculated fields while the white rectangles are user-generated:  For those students who don't drink coffee, they can identify something they might buy several times a week (e.g. snacks) and Put...

Reading List for September 27-29

|
Sep 27, 2019
|
Paying for College, Advocacy, Economics, Investing, Personal Finance, Insurance, Checking Accounts
Advocacy The Pennsylvania Senate passed a bill that would require students to take a semester-long personal finance class to graduate high school. The bill now moves to the House. The bill proposes that the credit for the class could be applied to social studies, math, business, or family and consumer science graduation requirements. (CBS-Pittsburgh) A survey from Country Financial found that 86% of Americans think financial education should be mandatory. (LowCards)   Economics There...

Reading List for September 20-22

|
Sep 20, 2019
|
Current Events, Economics, Investing, Paying for College, Career, Retirement
Financial Literacy/Advocacy Here is a snapshot of the state of financial education in the US by none other than NGPF Fellows, Courtney Poquette and Kayla Bousom, along with NGPF co-founder Tim Ranzetta. (MarketWatch) Arizona State Treasurer discusses the importance of financial education. (Personal Finance curriculum is part of the economics course Arizona high school students must pass to graduate.) (USA Today-AZ Central) Employers are now filling the financial literacy gap with twice as many...

NGPF Podcast: Burton Malkiel discusses his book, Random Walk Down Wall Street, and the index fund revolution that followed

|
Sep 20, 2019
|
Podcasts, Investing, Index Funds, Personal Finance
In 1973, Prof. Burton Malkiel's Random Walk Down Wall Street hit the bookshelves and the world of investing would never be the same again. Not only did Prof. Malkiel question the conventional wisdom that the "smart Wall Street money" knew best but he also made a revolutionary suggestion: give individual investors an opportunity to "buy the market." The foundation for  the index fund revolution that followed had been laid and Prof. Malkiel would play a leading role. In this NGPF podcast, he...

WSJ Headline: Index Funds Are the New Kings of Wall Street (w/Resources To Teach Your Students Index Funds)

|
Sep 19, 2019
|
Index Funds, Investing, Podcasts
Index funds (funds that mimic popular stock market indices like the S&P 500) now have more assets under management then active funds trying to "beat the market."  Per the WSJ:  Funds that track broad U.S. equity indexes hit $4.27 trillion in assets as of Aug. 31, according to research firm Morningstar Inc., giving them more money than stock-picking rivals for the first-ever monthly reporting period. Funds that try to beat the market had $4.25 trillion as of that date. The passing...

QoD: Rank order these financial accounts from most to least prevalent for 8-14 year olds: investment account, online gaming account, credit card

|
Sep 18, 2019
|
Question of the Day, Credit Cards, Savings, Investing
 Answer (courtesy of T. Rowe Price survey of parents of 8-14 year olds) Questions: Which of these accounts did you have when you were 14 years old?  For #1, list the timing of when you got each account.  How do you think that kids so young are able to have a credit card? Do you think it's a good idea for someone so young to have a credit card? Explain.  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the...

Reading List for September 13-15

|
Sep 13, 2019
|
Current Events, Advocacy, Budgeting, Credit Cards, Investing, Insurance, Paying for College
Advocacy Many of you have seen this one, featuring a quote from BrianPage, but in case you missed it: (USA Today) "School probably didn't teach you much about money, here are 4 things you should know". A national survey by Experian of Gen Z found that 76% of them agree that a personal finance class should be offered in high school. (PRN Newswire) (CNBC) Michigan is considering legislation to allow practical math options to Algebra II, including personal finance. (thecentersquare)  ...