Category: Savings

Question of the Day: We asked 300+ personal finance teachers what they planned to do with their stimulus check. What was their #1 answer?

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Apr 05, 2020
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Question of the Day, Savings, Behavioral Finance, Parent Conversations, Investing, Credit Cards
Answer: Pay down debt Here's a summary of their responses:  Questions: How do you think YOU would handle a lump sum payment of several hundred dollars NOW?  Why do you think people answer this question with such different responses? What is the importance of having an emergency savings fund now?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (USA Today) Millions of workers and their families will...

Question of the Day: What's the probability of an American coming up with $2,000 in case of an unexpected need in February 2020?

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Mar 17, 2020
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Question of the Day, Savings, Research
With talk of federal stimulus which including a $1,000 to every adult over the age of 18, this question collected from survey data in February measures the level of financial fragility pre-Coronavirus slowdown.  Answer: 71.6% Questions: What types of unexpected needs might cost $2,000? How do you think that most adults would manage $1,000 check from the U.S. Government at this time? What’s the best way to prepare for an unexpected expense?  How do you think this percentage...

Reading List for February 14-16

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Feb 14, 2020
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Personal Finance, Savings, Credit Cards, Investing, Economics, Retirement
Happy Valentine’s Day (and Presidents’ weekend)! In recognition of the holiday, I am sharing the first article from Barry Ritholz’ reading list this morning from Behavioral Scientist in case you still need to find that perfect Valentine’s card for the people in your life. Enjoy!   Personal Finance We do what we do to keep future generations from repeating our financial mistakes. According to a recent survey by Deposits.com, 85% of Americans admit to making financial...

[Updated] Question of the Day: What percentage of Americans can not come up with the cash to cover a $400 emergency?

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Feb 11, 2020
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Question of the Day, Savings, Current Events, Credit Cards
Answer: 12% It is time once again to take a look at new data on this often quoted number, and put it in context. (In fact, 12% is the critical figure here, representing those who can’t pay it at all: 27% would have to borrow or sell something to cover the expense.) Questions: Are you surprised by this number? Why or why not? What are some emergency expenses that could amount to $400? How do you think the 39% cover this emergency cost if they don’t have money saved to cover it? What...

NGPF Podcast: Andy Rachleff of Wealthfront discusses self-driving money

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Nov 22, 2019
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Podcasts, Investing, Savings, Checking Accounts
Andy Rachleff is back on the NGPF podcast (previous appearance here) and provides us with an update on both Wealthfront's progress and the recent trends in financial services. Andy discusses new features offered by Wealthfront, consumer reaction to their new Cash Account, and how financial advice is ripe for creative destruction. Listen to this podcast and you will get insights on how AI (artificial intelligence) will change how we manage our money.   Details: 0:00~1:29...

QoD: Would you rather have $1,000,000 or start with a penny and double your money every day for 30 days?

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Oct 08, 2019
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Question of the Day, Savings, Compound Interest, Investing
Good question to show the power of compounding...of course be sure to tell them that no investment would double on a daily basis for 30 days;) Calculators not allowed!  Answer: Starting with a penny and doubling it every day compounds to $10.7 million after 30 days Day 1: You would have $0.02 Day 2: You would have $0.04 Day 3: You would have $0.08 Day 4: You would have $0.16... Day 30: You would have $10,737,418.24. Questions: How much would the penny have grown to on Day 29? How much...

QoD: Can you name ONE of the FIVE most impactful pieces of financial advice that millennials have received?

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Oct 07, 2019
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Question of the Day, Personal Finance, Budgeting, Savings, Research
Questions: Create a similar list with students in your classroom in answer to this question "What is the best financial advice that you have received from family members?"  What does the phrase "Don't live beyond your means" mean to you? Can you give some examples of people "living beyond their means?" Why do you think that building an emergency fund has been such useful advice to millennials.  The advice listed above seems pretty "common sense." Why do you think that many people...

QoD: Rank order these financial accounts from most to least prevalent for 8-14 year olds: investment account, online gaming account, credit card

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Sep 18, 2019
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Question of the Day, Credit Cards, Savings, Investing
 Answer (courtesy of T. Rowe Price survey of parents of 8-14 year olds) Questions: Which of these accounts did you have when you were 14 years old?  For #1, list the timing of when you got each account.  How do you think that kids so young are able to have a credit card? Do you think it's a good idea for someone so young to have a credit card? Explain.  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the...

Throwback Tuesday QoD: What percent of 13-17 year olds have a savings account?

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Sep 02, 2019
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Savings, Question of the Day, Research, Current Events, Behavioral Finance
Answer: 54% Questions: Do you have a savings account? If not, why not? If so, what age did you open on and what motivated you to open it? Do you have any savings goals?  Do you find it easy/difficult to save money? Explain.  Here's the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (from Ipsos): To help with saving their money, a majority (54%) of Gen Zs have a savings account. Among those who have a savings...

QoD: Savers in England received information about rival banks with higher interest rates. What percent were prepared to switch banks?

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Aug 25, 2019
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Question of the Day, Savings, Checking Accounts, Behavioral Finance
Answer: 3% Questions: If you could make an extra $100 in extra interest by switching banks would you do it? How about $20 in extra interest?  Would the amount of time required to open a new bank account impact your willingness to switch banks? Explain.  Why do you think so few savers were ready to switch banks despite a potential benefit of $150 in the first year? Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the...

Throwback Tuesday Question of the Day: What is the personal savings rate in the United States?

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Aug 12, 2019
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Question of the Day, Savings
Every Tuesday, we will be updating the data for Question of the Day that had been used previously. This Tuesday it's all about savings... Answer: 8.1% (as of June 2019) Questions:  How does the personal savings rate today (about 8%) compare to the rate during other periods of time? (In other words, is the rate lower, higher, or around the same?)  What has been the general trend for personal savings rate in the U.S. from 1960-2019?  What has happened to the personal savings rate...

What's New With Savings--July 2019

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Jul 22, 2019
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Savings
What’s new with savings? Once again, apps and technology are the game changers here. As we move away from cash and piggy banks to digital transactions, it makes perfect sense that we are moving to digital forms of piggy banks. In the old days, you could make purchases with dollar bills and put all of your change in a jar or your piggy bank. When using cards or your phone, you need an app to do the same thing.   Research for this piece turned up several “listicles” of top...

Savings QoD: How much (in billions of dollars) are Americans losing by keeping their money in low-interest savings accounts?

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Jun 04, 2019
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Savings, Question of the Day, Research, Behavioral Finance
Answer: $50 billion Questions: Why do you think Americans leave their money in low-interest savings accounts when they could earn more by switching banks?  Would your answer to the previous question change based on the amount of money you had in your savings account?  Online banks tend to have the highest interest rates on savings accounts. Would you trust your money with an online bank? Click here for the ready-to-go slides for this Question of the Day that you...

NGPF Podcast: Tonya Van Court of Goalsetter focused on creating savings habits in young people

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May 03, 2019
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Podcasts, Entrepreneurship, Savings
All research points to the importance of developing savings habits when you are young. We can all attest to the importance of goal-setting in helping us accomplish things. Tanya Van Court founded Goalsetter with those two research findings in mind. It's not enough in Tanya's mind that kids save, she wants them to LOVE saving. By gamifying that process she hopes to create that life-long savings habit. Enjoy   Details: 0:00~1:38 Introduction 1:38~6:50 Early money lessons from her...

QoD: What percent of households led by someone 55 or older have NO money saved for retirement?

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Apr 03, 2019
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Savings, Question of the Day
Answer: 48% Note: DB is a defined benefit retirement plan or pension.  Questions: What income can seniors receive in retirement if they have no savings? Why do you think almost 1/2 of Americans households headed by someone 55 and over have no retirement savings?  What is one huge disadvantage for those who start saving for retirement in their 50s?  Will this information influence how you think about saving?  Here's the ready-to-go slides for this Question of the Day that...