Jan 15, 2019
NGPF Fellows, Investing, Behavioral Finance, Retirement
The following blog post comes courtesy of NGPF Fellow, Brett Shifrin, of Gould Academy in Bethel, Maine.
Recently, a student captured the imagination of my class. It stemmed from a comparison of Money Market Deposit Account(MMDA) and Certificate of Deposits (CD). It was suggested that one of these accounts could be very useful for graduation gifts this spring.
One of my students, Phil, asked, “Mr. Shifrin, what would you do if you unexpectedly received $5,000?”...
Dec 07, 2018
Personal Finance, Retirement, Economics, Financial Scams
Two articles popped up on this topic this week based on a research paper by economists at the Fed: Millennials are bucking trends not because they don’t want the same things previous generations wanted, but because they can’t afford them. (WAPO) (The Atlantic)
Ever go into a fast food restaurant and find you can’t pay with cash? No problem, unless you don’t have a credit/debit card or smartphone. (NYT)
Financial scammers play on your emotions, among...
Nov 26, 2018
Retirement, Index Funds, Video Resource, Investing, Savings
Looking for ways to get your students thinking about retirement? Introduce them to the F.I.R.E. Movement! That is the Financial Independence Retire Early Movement.
Why do I think this movement is important:
It's a counter-narrative to our consumerist society by focusing on extreme savings. We read so many stories about maxed out credit cards, why not expose your students to tales of young people saving 60-70% of their income?
It helps students understand the concept of passive income and...
Nov 11, 2018
Research, Retirement, Behavioral Finance, Interactive
The Robert Wood Johnson Foundation has an interactive that allows a user to type in their home address (info not stored by the site) and find out their life expectancy. I typed in the address for my hometown in New Jersey where I lived the first 22 years of my life and here's what I found:
Here's how I thought you might use this in your classroom:
Have students type in their home address including zip code.
How does the life expectancy of "My area" compare to the county, the state and the...
Nov 02, 2018
Financial Literacy, Cryptocurrencies, Economics, Paying for College, Retirement, Insurance
A survey by Ipsos on behalf of MNT, Ltd reveals that apparently, Canadians need help with financial literacy education as well.
The Visual Capitalist depicts the US problem with financial literacy in pictures.
250,000 jobs added this month, unemployment at 3.7%, and wages starting to increase (NYT), so what’s the problem? The Opportunity Index answers that question, and Third Way breaks it down for you. It may be worth the half hour it will...
Oct 19, 2018
Paying for College, Investing, Economics, Retirement
Paying for College
The majority of this week’s articles happen to be related to paying for college: the cost of college, student loan forgiveness, financial aid and how parents pay for college. I have also included a link to Beth Kobliner’s website and her series on paying for college, which you could recommend to parents.
After reporting that the “sticker price” of college keeps rising, the WSJ explains that the REAL cost is not.
A study by Sallie Mae finds that on...
Oct 11, 2018
FinCap Fridays, Retirement, Investing, Index Funds
How can you possibly engage high schoolers in a conversation about retirement? They haven't even gotten their first real job yet so it's not exactly on their radar screen. By highlighting the F.I.R.E. movement (that's Financial Independence, Retire Early) and the extreme examples of retirees in their 30s, we hope that gets your students thinking "How'd they do that?" That should spur a great conversation about savings rates and the importance of investing while you are young. ...
Oct 03, 2018
Question of the Day, Investing, Retirement, Research
In your own words, what is a 401(k) plan?
Do you think it's important to understand the fees you are paying in an investment account? Why or why not?
Given that a 401(k) account is the largest investment account for most Americans, why do you think so few understand what they are paying for it?
Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.
Behind the numbers (Visual Capitalist):
Here are the...
Oct 03, 2018
Chart of the Week, Math, Research, Retirement, Investing
From Simple Dollar Blog:
We all struggle with how to make retirement interesting to high school students who tend to be short-term oriented. You can use this chart to ask the question "How soon can YOU get to financial independence?"
First, let me provide some orientation:
X-axis tracks after-tax annual income
Y-axis has annual spending
Number inside the grid are years until financial independence
For example, a recent college grad with after-tax pay of $35k ($35,000) who spends $20k...
Sep 21, 2018
Economics, Personal Finance, Retirement
Ten-Year Anniversary of Lehman failure/Great Recession
Coverage continued through the weekend on this event, so here are just a few more good articles on the subject.
A special section of Sunday’s New York Times was devoted to the ten-year anniversary of the financial crisis. Here is one of the articles on where the next recession may come from.
Along those lines, economics wonks are looking around every corner for the trigger for the next crisis. Business Insider brings you Martin...
Sep 14, 2018
Current Events, Economics, Paying for College, Financial Literacy, Identity Theft, Retirement
Included a few extra articles this week as we recognize the ten-year anniversary of the Lehman failure and start of the Great Recession.....and a collection on paying for college as we start the new school year.
Ten Year anniversary of Lehman failure
What have we learned? Neil Irwin in his UpShot article compares current times to the 1990s looking for lessons.
The WSJ looks back at how the Great Recession changed our relationship with risk.
This WSJ/The Outlook discusses if the Fed has new...
Sep 09, 2018
Budgeting, Behavioral Finance, Retirement, Question of the Day, Investing
Thanks to Lynn Fischer of Kimberly High School (WI) for recommending this Question of the Day!
Assuming that they buy a coffee every day of the year (365 days in a year), what would be the daily cost of a cup of coffee?
What are ways that millennials could reduce their cost of coffee without going "cold turkey" and not drinking it anymore?
Are there things that you buy on a daily basis that would add up to hundreds of dollars spent on an annual basis?...
Aug 03, 2018
Podcasts, Retirement, Investing, Stocks, Index Funds
Ten years into his retirement, former LAUSD elementary school teacher and author Steve Schullo is still fighting the good fight for teacher retirement plans. This go-getter shares the insights from his teaching career and his passion to fix the current 403(b) mess. As the author of Late Bloomer Millionaire, you will learn how Steve's savings and investing plan helped him achieve a healthy nest egg. Listeners will also learn why he wrote Fighting Powerful Interests and the changes he...
Jul 13, 2018
Current Events, Economics, Investing, Paying for College, Internships, Retirement
Inflation ticked up in June to 2.9%, the highest level in 6 years. What does that mean for workers? (see Chart of the Week below)
Rare earth metals, critical in production of Americans’ extra appendage (cellphones), come from China. How will the trade wars with China impact this market?
Higher Ed and News for Recent Grads
The state of student loan debt in words and pictures!
Berklee College of Music finds success by bucking the trend and making its Online program a...
Jul 06, 2018
Current Events, Economics, Student Loans, Personal Finance, Retirement
This detailed Vox article explains what recent Supreme Court rulings at the end of this term mean for American business and the future of Antitrust. Economics nerds will enjoy the good examples of monopoly and monopsony here.
How do American workers fare compared to their counterparts across the world? Maybe not so well.
“Only Spain and Greece, whose economies have been ravaged by the euro-zone crisis, have more households earning less than half the nation’s median income...