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?
Sep 27, 2018
Investing, Research, Mutual Funds
Which of these three sentences do you think would help investors make better decisions...
1) Past performance does not guarantee future performance
2) Some people invest based on past performance, but funds with low fees have the highest future results
3) The most important single factor in mutual fund performance is the fund’s fees
Answer: #2 Some people invest based on past performance, but funds with low fees have the highest future results ...
May 14, 2018
Video Resource, Stocks, Mutual Funds, Entrepreneurship, Budgeting, Index Funds, Career
Since posting the first Digging Deeper on the PBS Series, a few new videos have been released. That post seemed to be well received, so I thought I would review the new videos and post suggested questions and NGPF related links to save you a little time at the end of the school year!!! As I mentioned before, there is a place on the Facebook page for the Two Cents video series for you to give feedback to Julia and Philip if you have big questions that you would like for them to...
Nov 27, 2017
Investing, Question of the Day, Stocks, Mutual Funds
From LA Times:
More from the LA Times:
These “passively managed” or “index” funds have delivered as they said they would — and have shamed many “actively managed” U.S. stock funds, the majority of which over the long run have failed to exceed or match the average market return after deducting their fees.
Passive funds were relatively slow to catch on with individual investors in the 1980s and ’90s. But over the last few years,...
Nov 17, 2017
Investing, Stocks, Savings, Mutual Funds, Article
This 7 minute article that appeared in Longreads hooked me in the first paragraph:
In 1989, Morningstar, Inc., an advisory service, issued a strongly worded and unusual recommendation to its clients who had placed money with a firm then called the Steadman Funds (later known as the Ameritor Funds). “We urge you to cut your losses and get out,” Morningstar counseled. Doubtless, some investors heeded this advice. Many couldn’t, though, because they were dead.
I wanted to...
Jul 25, 2017
Podcasts, Credit Scores, Credit Cards, Index Funds, Investing, Mutual Funds, Current Events, Credit Reports, Featured Teachers, Entrepreneurship
The NGPF Podcast started almost two years ago (and almost 100 podcast segments later) allowed me to “scratch my own itch.” To anyone who knows me, I love talking finance and since I was young I was always told that I had a voice (and a face) for radio. I thought why not try this “podcasting thing” and see what happens. My thinking was “How much fun would it be to reach out to interesting people, including educators, researchers, columnists, finance experts, authors,...
Jun 12, 2017
Chart of the Week, Behavioral Finance, Question of the Day, Research, Index Funds, Mutual Funds, Current Events
Sometimes a simple model or flow chart elucidates a complex question. Here is one example of that principle (from Mr. Zepczynski’s blog):
What are the three questions that you have to answer in the affirmative (with a YES) in order to be an “active investor?”
Which of the three questions do you think is most difficult to answer? easiest to answer?
What is meant by market efficiency? Can you think of examples when the markets may NOT have been efficient?
Mar 29, 2017
Personal Finance, Credit Scores, Paying for College, Credit Cards, Index Funds, Investing, Mutual Funds, Financial Literacy, Teaching Strategies, Compound Interest
This year, NGPF took our show on the road and taught personal finance workshops in several local schools. These experiences included a 3 day workshop at the Nueva School (San Mateo), a four session workshop at Castilleja school (Palo Alto), seven sessions with an AVID classroom at Mountain View High School (Mountain View) and our intensive 6 week workshop at Eastside Prep (East Palo Alto). In this post, I will share my experiences at the Castilleja School, an all-girls school just down the...
Mar 28, 2017
Activities, Credit Scores, Career, Paying for College, Research, Budgeting, Credit Cards, Identity Theft, Personal Finance, Investing, Mutual Funds, Savings, WebQuest, Financial Literacy, Student Loans, Checking Accounts, Debit Cards, Payment Types, Stocks, Current Events, Insurance, Video Resource, Case Study, Credit Reports, Employment, Quizzes, Entrepreneurship
What does a distinguished professor do during her sabbatical? Curate personal finance resources, of course! In this blog post, Barbara O’Neill shares the fruits of her hundreds of hours of labor in putting together three awesome resource lists (see bottom of post for links to her lists), including what what she considered the “best of the best” from the NGPF library. As she describes below, the purpose of her odyssey was to replenish her “well” of creative...
Mar 15, 2017
Investing, Activity, Research, Index Funds, Mutual Funds, WebQuest, Stocks, Activities
A teacher at our recent FinCamp reminded me that we should not forget about the importance of the mechanics of personal finance transactions. What good is teaching students about the importance of investing if they don’t know how to go about setting up an account to buy/sell investments. While we have a activities on how to select a credit card and a bank account, we don’t answer the basic question that many young investors have which is “How do I buy a stock?”
Mar 12, 2017
Investing, Behavioral Finance, Index Funds, Mutual Funds, Stocks, Current Events, Video Resource
Warren Buffett’s Million Dollar Bet: Who’s Winning (from MarketWatch)?
What’s the bet?
What’s a hedge fund? What’s an index fund?
Who’s winning? Why?
Why should this matter to you as a regular investor? What’s the lesson?
Fee war breaks out on commissions to trade stocks (from CNBC):
How much are brokerage fees going down? Is this good news for investors?
Why do you think the online brokerage stocks are falling with this news?
Do you think...
Mar 06, 2017
Current Events, Index Funds, Investing, Mutual Funds, Stocks, Math, Interactive
Here’s a great interactive for students who struggle with the concept of the S&P500 or of an index or mutual fund. For a math teacher, this interactive would be percentage heaven! I blogged about this in October 2014 when most of you were NOT reading this blog so definitely worthy of a repeat post. I have added better questions for your students to answer too. From finviz.com comes this great visualization of the S&P500:
Here’s a description of what you are looking at:
Feb 15, 2017
Cartoons, Investing, Mutual Funds, Teaching Strategies
Here are three cartoons focused on investing and a few questions for your students to ponder:
What is happening in the cartoon?
What is the motive of the cartoonist?
What lessons can you glean from these cartoons to help your financial life?
In this case, the experts are right! Check out this NGPF Activity on Compound Interest. Create an activity to see what happens when parents invest in college saving or 529 plans when their children are born.
Feb 14, 2017
Webinar, Index Funds, Investing, Mutual Funds, Teaching Strategies, Podcasts, Compound Interest
I have been thinking a lot about this issue of how to make investing simpler. I hear from teachers that this is a real pain point for them. I can see in the NGPF podcast stats that the most popular guests tend to be conversations about investing (Mike Finley, Jonathan Clements and Vanguard’s Jim Rowley to name a few). Then this weekend the lightbulb went off. I was heading to the coast listening to Charlie Ellis on the Masters In Business podcast (kinda dorky I know). Those of you not...
Jan 29, 2017
Index Funds, Activity, Behavioral Finance, Investing, Mutual Funds, Teaching Strategies, Math, Activities
I awoke this morning thinking “how can you make index funds more tangible for students?” Why do I care about this? Anyone who has heard my rantings before either in this blog or on the NGPF podcast knows that I abhor the Stock Market Game. It teaches all the wrong lessons about investing: the short term nature of it, the “luck” factor, the highest risk strategy wins and so on. At some point, I will create a game to counter these lessons that is focused on index funds. The...