Category: Savings

Question of the Day: What percent of 14-21 year olds (Gen Z) are already saving for retirement?

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Dec 04, 2017
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Retirement, Current Events, Savings, Research
Answer: 12% From Center for Generational Kinetics 2017 study: In the national study, a surprising 12% of Gen Z is already saving for retirement. That is a much bigger number than one might anticipate given the youth of Gen Z in the study, who are ages 14 to 21. Diving further into the question, it was discovered that 35% of Gen Z plans to start saving for retirement when they are in their 20s. Questions: Have you thought about saving for retirement yet?  If yes, have you acted upon it? If...

What One Financial Habit Leads ToThe Highest Levels of Financial Well-Being?

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Dec 03, 2017
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Savings, Question of the Day, Research
Answer: Saving Simple message for students reinforced by this research data from CFPB: Want to feel financially secure? Develop savings habits early! Chart from CFPB's Financial Well-Being In America report: Questions: Between what levels of liquid savings is there the greatest differential in financial well-being? How much of a difference does having a friends/family safety net make to in one's financial well-being? Why do you think this is the case? What financial situation/statement leads...

Question: How much money is there in the world?

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Nov 28, 2017
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Economics, Question of the Day, Research, Savings, Chart of the Week, Stocks, Investing, Current Events
Answer: It depends on how you define money. From $7.6 trillion (physical currency) to $90 trillion (broad money).  This audio and infographic below are great ways to bring the concept of money to life and also help provide context to the size of the various markets and the U.S. position relative to the rest of the world.  Audio from Marketplace (hat tip to Sonia; duration, 3:19):  Questions:  What type of money is included in M0 (zero)?  What is included in the term...

NGPF Podcast: Tim Talks to Enterprising Educator, Dan LaSalle of Olney High School (Philadelphia, PA)

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Nov 19, 2017
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Podcasts, Personal Finance, Savings, Parent Conversations, Teaching Strategies, Career
Want a radical approach to teaching financial education? How about creating jobs for your students at school and paying them for their efforts...then standing back and watch how they manage THEIR money. Dan LaSalle, educator at Olney High School in Philadelphia came up with this idea, received a grant to fund it and shares his observations after one year of running the IF (Identity and Finance) Project. His belief: to teach kids about money they need to have money to manage. Listen to the...

Article: The Dead Man Fund

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Nov 17, 2017
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Investing, Article, Mutual Funds, Savings, Stocks
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...

Financial Education Explained by Danielle: The Cost of Trust

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Nov 14, 2017
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Financial Scams, Budgeting, Payment Types, Article, Personal Finance, Savings
Last week, one of my friends experienced a financial pitfall that most of us only ever hear about and hope to avoid. For the past five months, my friend's monthly rent money was not making it to their landlord because their roommate had been pocketing it. To give some context: most landlords require a single rent check for each unit that they own. To achieve this in a multiple person apartment, one roommate—typically the original or most responsible tenant—usually inherits the...

Question of the Day: What percent of teens are saving money?

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Nov 12, 2017
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Savings, Question of the Day, Research
Answer: 38% From MarketingVOX and Rand Youth Poll:   "Aside from gauging spending trends, MarketingVOX and the Rand Youth Poll also looked into how much teens are saving. Of more than 8,000 teens surveyed, 38 percent reported that they're actively saving money and 22 percent said they are saving more than they did the previous year." Questions:  What do you think are some of the benefits of saving? Are you currently saving? Why or why not? Do you have any savings strategies or...

Question of the Day: How many monthly withdrawals can you make (without penalty) from a savings or money market account?

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Nov 09, 2017
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Question of the Day, Policy, Debit Cards, Checking Accounts, Savings
Answer: 6 Hat tip to Jessica and her PLC group, Diane Mondoro, Steve Penley, Vicky Livesay, and Kayla Bousum for generating this question. (Sign up for the next round of our PLCs here)  On to the details: From NerdWallet: Regulation D, also known as Reg D, is a Federal Reserve Board rule that puts a limit of six transactions per month on certain transfers and withdrawals from your savings or money market account. If you go over the limit, the bank or credit union can charge you a fee, close...

Question: Why Invest?

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Nov 05, 2017
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Investing, Savings, Chart of the Week, Stocks
I saw this headline recently and immediately started to predict all the reasons the writer was going to enumerate about the benefits of investing. Yes, we all have seen those listicles that make great clickbait about the "10 Reasons You Better Invest!" Instead, the writer surprised me with a one word answer that everyone can understand: Inflation. Read on to find out why inflation matters... From Monevator:  This graph shows how what you can buy with £10,000 falls over the...

What is the Most Popular Fund For Retirement Accounts?

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Oct 17, 2017
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Savings, Research, Retirement, Index Funds, Investing
Answer (with hat tip to Big Picture Blog who posted this research study 401(k)/IRA Holdings in 2016 published by the Center for Retirement Research): Target-Date Funds now used by 72% of participants in retirement plans at Vanguard. For more on Target Date funds, check out this NGPF primer with an activity idea too.  ----------------- Check out this NGPF Case Study: Compound My Interest in 401(k)s              ...

Question of the Day: Do More Americans Prefer Spending or Saving?

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Oct 16, 2017
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Question of the Day, Savings, Purchase Decisions
Here's what Gallup found (and I was surprised by the results): 59% prefer to save money! Questions: Which do you prefer?  Why do you think more people prefer saving to spending?  Why does America have such a low savings rate despite the fact a majority of people prefer saving over spending? ----------------- Interested in more savings activities? Check out this page on the NGPF website!   ...

Two NGPF Interns Took On the Payback Challenge: Here's How They Did!

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Oct 13, 2017
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Paying for College, Student Loans, Savings, Activities
Donnesh: The first quality about this simulation that stands out is how it gives the user the opportunity to blend their real life choices and starting position, with hypotheticals, to know exactly how much future decisions will cost. I saw what my potential earnings would look like with the major I’ve applied for and saw how my GPA and school really affect how much debt I’ll need to withdraw. I played this game 4 times to see how different choices led to different outcomes. ...

Question; What Are People Searching For on Google When It Comes To Money and Career?

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Oct 09, 2017
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Checking Accounts, Career, Savings, Employment
Fascinating set of interactives (go here to see what else people are searching for and to use the interactive features) that show what people are searching for on Google in different categories (fixing stuff around the house, cooking, etc.). Here is that they found when it comes to "grown-up stuff." The size of the boxes indicate the number of searches for that question. Anyone surprised to see "write a check" on that list?  ----------------- Check out the NGPF Resources that correspond to...

Question: What's the Probability That You Will Live to 100?

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Aug 30, 2017
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Question of the Day, Savings, Research, Current Events, Investing
Talking about investing for retirement may seem abstract to your students, but what if you framed it from a longevity perspective? Do you want to prepare your financial life knowing that you could live to 100? This MarketWatch article provided some actuarial tables showing the probability of living to 100 for different age groups: So students in your class have a not too insignificant chance of making it to 100 (6.1% for men who are 25 today and 10.2% for women of the same age). Ah, the powers...

Finance in My Life

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Aug 22, 2017
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Investing, Savings, Retirement, Student Loans
Just back from vacation and reflecting on various conversations that arose in the course of my travels. As anyone who has listened to my podcasts knows, I like to ask lots of questions but in the conversations described below, finances were brought up without my prompting. Here's what I heard: A 67 year old cab driver lamented the fact that he was collecting his Social Security check which wasn't enough. As a result, he had this side hustle driving a cab. "If I had only socked some money away...

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