Question of the Day (Update): How Do People Pay For Things?
This Federal Reserve of San Francisco report is chock-full of graphs about payment preferences gathered from their 2018 Diary of Consumer Payment Choice. With so many graphs to choose from, I thought this one could kick-start a great discussion:
Just to orient you as to what is being measured here, this graph focuses on the number of transactions rather than the actual value. So, while the percentage of cash transactions might seem high, most of these transactions were for small...
Question of the Day: What percent of Gen Z use contactless payments (tap to pay) at least two times a week?
Answer: 49%
Questions
How frequently do you use tap to pay to buy stuff?
Do you consider this payment type secure? Why or why not?
Do you think you are more likely to overspend using cash or tap to pay? Explain.
Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.
Behind the numbers (creditcards.com):
Though Generation Xers (age 40-54) were most likely to have used contactless payments for more than two years...
Video Resources: Brief History of Credit Cards, Will Power and Kids in a Cashless Society
Interesting videos that you may find useful to supplement your lessons.
Video: A Brief History of Credit Cards (or, What Actually Happens When You Swipe)
Description: "What actually happens when you swipe your credit card? a16z general partner Alex Rampell helps solve the mystery, taking us from the beginning of the credit card revolution (including its hometown of Fresno, California) and on the journey of how both information and money travel… through the five parties...
Reading List for November 8-10
By Beth Tallman
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Nov 08, 2019
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Financial Literacy, Entrepreneurship, Payment Types, Credit Cards, Investing, Cryptocurrencies, Retirement
Financial and Economic Literacy
People don’t know as much as they think they know about money. (Kiplinger)
Teens think economics is an important subject, yet they don’t grasp key concepts even after taking an economics class. Here are some suggestions for making the education more effective. (PRNewswire)
The CEO and founder of Pliquit wrote an article for Forbes encouraging banks to step in and take advantage of Gen Z’s consumption of media to fill their financial literacy...
Digging Deeper: What the Heck are Digital Dollars?
What if the US Federal Reserve stops printing currency and minting coins, going to purely digital dollars. How would this differ from life today, where many of us never actually touch cash? How would this differ from private crypto-currencies? What role will commercial banks play in this new system? Where does the Federal Reserve Bank stand on this issue? If dollars no longer exist physically, does it change the dollar’s standing globally?
Given that the US has not yet planned...
QoD: Rank order these payment types from most to least used by adults: Cash, Credit Card, Debit Card
By Tim Ranzetta
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Sep 29, 2019
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Question of the Day, Payment Types, Debit Cards, Credit Cards, Research
Thanks to Julius Prezelski for pitching this idea and pointing out a new research study from the Federal Reserve.
Answer:
Debit cards 28%
Cash 26%
Credit cards 23%
Questions:
Does this match your experience?
What purchases are you most likely to use cash? use debit cards?
Do you think these answers vary based on your age? If you polled your classmates, what do you think the answer would be?
Click here for the ready-to-go slides for this Question of the Day that you...
Oops! How Does One Undo Payment Mistakes?
I speak to users of payment apps about their experience, and they assure me they are very careful and are confident they are always paying the right person the correct amount. While I don’t use Venmo myself (yet), I have watched the demos and watched my kids use it. I like the functionality, and I understand that 99.9% of the time, you are paying funds to or requesting funds from one of your contacts, which explains users’ confidence. (For the life of me I don’t understand why...
What's New With....Checking Accounts (and ways to spend from them)?
What’s new with checking accounts, and banking in general? In a word, technology…..it changes how we bank, where we bank, and how banks themselves are evolving to compete with all FinTech players have to offer.
How banks are changing
Banks have offered online bill pay for a while now. According to the Federal Reserve, check writing has declined by 3-5% each year between 2012-2017 as a result. What you might not know is that 20% of these payments are still made with a physical...
QoD: Match up the percent with the correct item below: 8%, 50%, 75%.
a) Percent of millennials that use peer-to-peer payments (e.g., Venmo) weekly
b) Percent of customers that change banks in a given year.
c) Percent of Americans under 25 that would rather go without their wallet than their phone
Answer (from Economist; subscription required):
a) 50%
b) 8%
c) 75%
Questions:
Do you use a peer-to-peer payment service? Why or why not?
Why do you think that such a low percentage of people change banks ever year?
Would you rather go...
Reading List for April 27-28
Apr 26, 2019
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Financial Literacy, Paying for College, Career, Payment Types, Investing, Economics
Financial literacy
Interesting data/graphs in this piece from pymnts.com on Americans’ inability to save money and how they manage their bills and debt.
(Forbes) lists the six things high school graduates should have access before moving on in life….and yes, financial education is #1.
Could early financial education lead to higher earning? (Benzinga)
There are great anecdotes in this piece about not making your personal finance lessons (books, blogs, etc.) too...
Reading List for a holiday weekend (April 20-21)
By Beth Tallman
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Apr 19, 2019
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Financial Literacy, Career, Investing, Behavioral Finance, Payment Types, Retirement, Current Events
Financial Literacy
NGPF is in this list of quality free curriculum (and training) for personal finance teachers—no excuse for not being prepared!(Marketwatch)
Need some inspiration this weekend? Read this Marketwatch piece about Troy Murphy’s pursuit of spreading financial literacy. NGPF fellow Kerri Herrild’s Giving Project and Daniel LaSalle’s Philly Financial Cooperative are the beneficiaries of Troy’s work. Then listen to the podcasts Tim has done with all...
Reading List for April 13-14
By Beth Tallman
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Apr 12, 2019
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Financial Literacy, Investing, Payment Types, Career, Cryptocurrencies, Current Events
Financial Literacy
Our second list of Financial Literacy Month includes some extra articles on the topic.
An interview with the CEO of Chase Consumer Banking highlights her passion for financial literacy. (NYT)
Annamaria Lusardi presents data/research on why financial literacy matters. (CNBC)
Along similar lines, the St. Louis Fed discusses what financial literacy is. (St. Louis Fed)
MarketWatch republished one of Jonathan Clement’s Humble Dollar posts with the 45 steps to having a...
The "Costs" of Going Cashless
Did you see last week's FinCap Friday on Disappearing Dollars?
Here is a bit more on the topic.
Earlier in March, Philadelphia Mayor Jim Kenney signed a bill into law that requires brick and mortar stores1 and restaurants to accept cash, becoming the first city in the US to ban cashless stores. New York, San Francisco, Chicago and Washington DC are all reportedly considering similar measures. The New Jersey legislature has passed a cashless ban also, and if the Governor signs it into law, New...
Question of the Day: How do most Americans pay their bills: online, automatic, or other (by phone/by mail/in-person)?
Answer: Other (In person, by mail or by phone)
Questions:
Why do you think such a large percent of people still pay bills using these "old school" ways?
Do you know how your parents/guardians pay their bills?
What might be one risk with setting up your credit card bill to be paid automatically from your checking account?
The mean number of bills paid per consumer is 21. How do you think people keep track of all of these bills so they don't miss one?
Here's...
Question of the Day: What is the #1 contactless (mobile wallet) payment method?
Answer: Apple Pay
Apple Pay 77% of mobile wallet transactions
Samsung Pay 17%
Google Pay 6%
Hat tip to Beth Tallman for passing along this idea!
Questions:
Do you/do you plan to use your mobile phone to make contactless payments at stores? Why or why not?
Recent research suggests that those using digital wallets often exhibit riskier financial behavior. Why do you think this is the case?
Digital wallet transactions account for about 9% of global digital transactions. What do you...
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