Category: Investing

Reading List for June 14-16

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Jun 14, 2019
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Career, Investing, Credit Scores, Cryptocurrencies, Financial Literacy, Parent Conversations
Careers Here is a fun one! Take a look at these wacky job titles. It might be fun to have your students guess what each one might mean! (Indeed.com) Forbes provides another list – this time it is the best employer in each state. Can you guess the best employer for your state? (Forbes) Managing Credit This article explains how smart use of a secured credit card can help you build or boost your credit score. Now Amazon is getting into this game. (NYT) "The Financial Health Network...

QoD: Which one of the following headlines DID NOT appear in the past month?

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Jun 11, 2019
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Investing, Credit Cards, Question of the Day
Choices:  Teens help Snap's stock to surge  High school English teacher paid thousands to Citibank for credit card protection he never wanted  High school senior earns millions trading bitcoin; will donate money to build stock trading floor at high school  Teen bakes thousands of cupcakes to take his family to Disney World  Answer:  High school senior earns millions trading bitcoin; will use proceeds to build new science building at high school  While...

Question of the Day: When choosing from a list of 401(k) investment options, which tend to be chosen most frequently: those investments starting with the letter C, letter M or the letter Z?

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Jun 09, 2019
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Question of the Day, Investing, Retirement
Answer: The letter C Questions: Why do you think that investments with the letter C might be selected more frequently than the investments starting with the other letters?  What does your answer to the previous question say about human nature when it comes to challenging decisions with lots of options?  How can you overcome this alphabeticity bias?  Think of a decision that you recently made that had lots of choices (meals, career choices, colleges, classes to take). Describe...

Reading List for June 7-9

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Jun 07, 2019
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Financial Literacy, Parent Conversations, Credit Cards, Investing, Paying for College
Financial Literacy/Parenting In case you didn’t see this in your social media feed this past week, here is the NYT financial checklist for kids heading off to college by Ron Lieber.   Millennials Deloitte released the results of a study measuring the net worth of millennials (aged 18-35) and found that it dropped 34% from 1996 levels. Education cost increases may be largely to blame. (Yahoo) On a related note, lack of wealth is one reason millennials are delaying marriage, but they...

NGPF Podcast: Doug Lynam Describes His Transition from Monk to Money Manager

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Jun 07, 2019
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Investing, Podcasts, Behavioral Finance
Monk, personal finance educator, Marine and financial advisor. That's just part of Doug Lynam's CV which makes for a fascinating podcast. Doug shares how each of these experiences has shaped him and ultimately led to his current role as money manager. You will also learn about the motivation and key insights from his current book, From Monk to Money Manager. Enjoy!   0:00~1:12 Introduction 1:12~6:46 Early experiences with money 6:46~9:27 First job and lessons learned 9:27~15:14...

Reading List for May 31-June 2

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May 31, 2019
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Investing, Credit Cards, Behavioral Finance, Budgeting, Research, Retirement
From 403(b) plans to goal setting to digital decluttering and graduation advice...enjoy these weekend reads with your favorite cup of joe:  Thinking that annuity in your 403(b) is gouging you? You are probably right (from Barrons): "Teachers’ 403(b) plans are sold directly to individuals, rather than to employers, so the interest of the salesman was coming first. “Imagine you’re a kindergarten teacher and they’ve given you a 400-page prospectus about variable...

Reading List for Memorial Day Weekend 2019

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May 24, 2019
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Generosity, Behavioral Finance, Personal Finance, Investing
Enjoy these Memorial Day weekend reads curated by Beth with a few additions from Tim:  NGPF Podcast guest, Morgan Housel, is at it again with a valuable piece on "Realistic Personal Finance Hacks." My favorite: "A finely tuned BS radar that screams “red alert” when promises of abnormal gains without abnormal sacrifice are offered." It's a time for advice to graduates, here's a few that caught my attention (interesting to see the overlap since they come from two very...

NGPF Podcast: Gene Natali, Author of the Missing Semester, Advocate for Financial Education For ALL Students

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May 24, 2019
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Podcasts, Investing, Advocacy
 Investment consultant to large institutions by day and author, educator and advocate by night aptly describes Gene Natali and the multiple hats he wears. I first met Gene at the JumpStart National Educator Conference where he delivered a rousing keynote address that captured the audience's attention. Pulling from the best of behavioral finance, he frames financial issues in a manner that demonstrates the long-term impact of decisions. This will make even the most impulsive young person...

QoD: What worries adults most when it comes to financial matters?

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May 21, 2019
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Question of the Day, Behavioral Finance, Retirement, Investing, Insurance
From Gallup: Questions: As you think about leaving high school, what would be your top money worry? How do you think your parents/guardians would answer a question like this?  What are steps that a person can take to reduce their worries when it comes to the first three items on the list? How much do you think these answers would change during a recession (we are currently in the midst of an ongoing economic expansion)?  Here's the ready-to-go slides for this Question of the Day...

Interactive Monday: Can You Time The Market?

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May 19, 2019
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Interactive, Stocks, Investing
Another engaging interactive to dispel the notion that one can time the market.  Here's the description of the game (from Betterment) which is about 3-4 minutes long and can be played multiple times: Many investors believe (or act as if they believe) they can beat the market through timing their deposits or asset allocation. Our interactive simulation puts you in the driver’s seat to decide whether to invest or sell based on actual New York Times headlines since 1928. Click below...

Reading List for May 18-19

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May 17, 2019
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Financial Literacy, Economics, Investing, Parent Conversations, Career, Current Events
Financial Literacy New GFLEC study was released and teachers support mandated personal finance. (PRN Newswire) Tony Isola gives his take on the likely success (or lack of it) of mandated personal finance classes. The issue is not with the concept or the teachers…it is more about the structure of schools. Education/Higher Ed The Higher Ed headlines move from Varsity Blues to SATs new score. An “Adversity Score” being added to SAT scores. The student won’t know what...

QoD: How many of the 12 largest companies in 2000 were still one of the largest 12 in 2018?

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May 12, 2019
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Investing, Question of the Day, Stocks, Index Funds
Answer: 4 Exxon Mobil went from #2 to #11 Wal-Mart Stores went from #6 to #12 Microsoft went from #7 to #3 Johnson & Johnson went from #11 to #9 Questions: Compare the list in 2000 to 2018. Write one sentence that describes how the economy has changed in the past 18 years based on changes in the largest companies. Which industries have grown the most?  How many of the top 12 companies on the list in 2018 are you familiar with?  How has the value of the three companies that...

Reading List for May 11-12

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May 10, 2019
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Investing, Stocks, Advocacy, Credit Cards, Mortgages, Retirement
  Investing We will start with Investing this week because this week's biggest news is today’s Uber’s IPO. Here is all you need to know about the one of the largest IPOs! (NYT) Uber was priced at $45/share--the “low end,” and keeping the valuation at $82B, well below the expected $100B. Looks like “low end” wasn’t low enough. Watching CNBC Squawk Box as the market was “building the book” before the first trade was fascinating as the...

QoD: Nike or Under Armour: Which company's stock has performed better over the past five years?

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May 08, 2019
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Investing, Question of the Day, Stocks
Answer: Nike, by a long shot! Nike closed the trading day on May 1 at $85.27, up $35.77 on June 1, 2014, for an average annualized return of 19.35%.  Under Armour, on the other hand, closed the trading day on May 1 at $22.82, DOWN from its price of $29.75 five years earlier for an average annualized loss of over 2%. Here's the chart: Questions: What factors do you think contribute to the very different market performance of these companies? Which products do you personally prefer?...

Why we need financial education: Students underestimate power of compound interest and think savings accounts earn the highest returns

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May 08, 2019
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Compound Interest, Investing, Financial Literacy
The answers to these two questions from a recent workshop are a great demonstration of the need for financial education: When asked which of these investments would earn the highest returns, the most common answer was....Savings Accounts and 34% got the right answer:  When asked the question about how $1,000 growing at 7% annually would grow over 40 years (I read the question and emphasized ANNUALLY several times as Kahoot limits the characters in the question)....23 skipped the...