QoD: What worries adults most when it comes to financial matters?
By Tim Ranzetta
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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...
QoD: Can you name one of the five highest paying jobs for the college Class of 2019?
Hat tip to Beth Tallman (via Big Picture blog) for this QoD.
Answer:
Questions:
Do you see a pattern with the highest paying jobs for this year's college grads?
What do you think are the factors that determine the salary of a recent college grad?
Does seeing information like this impact how you think about your college major?
Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.
Behind the numbers (via Bloomberg):
The Class of 2019 is getting...
Order from highest to lowest cost: renters insurance, health insurance for average adult, car insurance for 16 year old?
Answer:
Health insurance: $5,712
Auto insurance for a 16 year old; $4,140
Renter's insurance: $154 - $224
Questions:
What do you think are the reasons that people buy insurance for their health, auto and for the apartment they rent?
Why do you think that health insurance is more expensive than the other types?
Which of the three types of insurance do you think increases in cost as you get older? declines in cost as you get older? Explain.
Here's the ready-to-go slides for this...
QoD: How much do Americans spend monthly on subscriptions?
Answer: $237 a month
Questions:
Have you ever signed up for a monthly subscription?
If so, what do you subscribe to and how much do you pay?
If not, do you know any family members who have subscriptions (who knows, maybe you even use their Netflix account:)
Have you ever heard someone complain about signing up for a subscription that they didn't even know about? What happened?
The research found that 84% of Americans underestimate how much they spend every month in subscriptions? How...
QoD: Which credit card feature is most popular with consumers: 0% interest, 3% cash back or $500 cash sign-up bonus?
Hat tip to Beth Tallman for pointing out this study from Bankrate which is full of great question material:)
Answer: 3% cashback
Questions:
Why do you think the 3% cash back feature is so popular with cardholders?
Do you think the most popular feature might differ for those carrying a large credit card balance (i.e., you were not paying off your credit card bill every month)? Why or why not?
Which would you choose if deciding between these three features? Explain your answer. ...
QoD: Which credit score band has the highest percentage of people: 670-739, 740-799, 800-850?
Answer: 670-739 with 21.5% of people in that range
Questions:
What are some of the disadvantages of having a low credit score?
What are some advantages of having a high credit score?
Why do lenders use credit scores? How is this information helpful in running their business?
What is your strategy to develop a high credit score?
Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.
Behind the numbers (Financial Samurai):
Your credit score ranges...
QoD: How many of the 12 largest companies in 2000 were still one of the largest 12 in 2018?
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...
QoD: Nike or Under Armour: Which company's stock has performed better over the past five years?
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?...
QoD: What is cause of most internet fraud losses: ID theft, email compromise or romance scams?
Questions:
What steps can you take to prevent your email account from being compromised?
Why do you think that romance scams are so pervasive?
Do you know anyone who has been the victim of any of these frauds? Explain what happened.
Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.
Behind the numbers (Priceonomics):
Forty percent of online fraud losses are the result of Email Compromise, sometimes referred to as Business Email...
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...
QoD: What category of worker has doubled since the 1980s: Manufacturing, Service, or Knowledge?
Answer: Knowledge
Examples of various types of workers:
Routine cognitive workers = bookkeepers, filing clerks, bank tellers
Routine manual workers = assembly line workers or workers in warehouse
Nonroutine manual workers = service occupations
Questions:
In your own words, what is a knowledge worker?
What are examples of the types of jobs that a knowledge worker has?
How do you prepare to become a knowledge worker?
Which job types tend to be most affected by a...
QoD: How do 18-24 year olds plan to use their tax refund?
Now that tax day has come and gone, many folks will be waiting for their tax refund. How do they plan to spend it? Hat tip to Beth Tallman for this question.
Answer: Pay down debt (20%), save it (12%), invest it (11%), make a major purchase (9%)
Questions:
What is one major difference on how 45-54 year olds plan to use their refund compared to 18-24 year olds? What might explain this?
If you were a financial advisor and your client was expecting a $3,000 tax refund (average), how would...
Question of the Day: What’s the #1 way scammers receive money from unsuspecting consumers: Credit Card, Wire Transfer, or Bank Account Debit?
Answer: Wire Transfer
Questions:
Why do you think this is the easiest method for scammers to receive money?
How can you avoid getting caught up in this kind of situation?
Can you get your money back once you have wired it to someone who you later discover is a fraud?
Go to Bank Wire Transfer Safety to get your answer
Do you generally feel safe sending money via Paypal/Venmo? Explain your answer.
Click here for the ready-to-go slides for this Question of...
QoD: Match the percent with the correct item below: 42%, 69%, 90%.
Items:
a) Percent of moviegoers who watched new Avengers movie this weekend
b) Percent of high school students in 2018 who went on to college
c) Percent of college-going survey respondents who listed "level of debt to pay for the degree" as their top concern.
Answers:
a) 90% (from Box Office Guru)
b) 69% (from BLS research)
c) 42% (from Princeton Review survey)
Questions:
How did you become aware of the new Avengers movie? Why do you think it went “viral” and had a record...
Question of the Day: Order these countries from highest to lowest tax rates: United States, Germany, Mexico
It's still April, so how about a QoD about taxes. Thanks to Beth Tallman for providing the question.
Answer: Germany (39.7%), United States (23.8%), Mexico (10.2%)
Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.
Questions:
Why do you think that taxes vary so much between countries?
Which country do you think has the best benefits for retirees? Explain.
What tax rate do most countries seem to be clustered around?
Behind the...
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