Date Filter: 2014/8/

Prepaid Debit Cards: A Primer

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Aug 29, 2014
I thought it was time to learn more about prepaid debit cards and understand why they are one of the fastest growing financial products.  Here goes: The elevator pitch:  “With all of the functionality of a debit card, but prohibiting consumers from spending more than they load on the card, this product provides a convenient financial service with significant benefits and control.”  (Huffington Post, TD Bank SVP) Product description:  “General purpose reloadable”...

Developing Financially Savvy Students: Comparing the Credit Card Comparison Sites

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Aug 29, 2014
WSJ out with article earlier this week about inherent conflicts of interest with credit card comparison sites.  When your largest source of revenue comes from the products you are trying to compare, you better have a Chinese wall between advertising and editorial.  Well, surprise, surprise, that Chinese Wall disappears when revenue pressures hit.   Over the past year, the mutually beneficial relationship between a number of card issuers and comparison sites has turned icy, with heated...

What’s New in Financial Literacy?

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Aug 28, 2014
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This Week In Financial Literacy
Behavioral finance experts weigh in on how to change those bad money habits (The Week):“A more promising solution to fight the urge for instant gratification? Take advantage of technology to keep you in check. “More and more financial service providers are offering simple tools for tracking and controlling spending with alerts, customizable spending limits and the like,” Zinman says. Some credit card companies will even send you an alert each time you use your card — reminding you how...

What Do Students Need to Know About the FAFSA?

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Aug 28, 2014
Like an author writing a book, a curriculum developer also starts their process with that all too intimidating “blank sheet of paper.”  That is one of my favorite aspects of helping build out NextGen’s Personal Finance curriculum.  I usually start the process by thinking “what are the most important takeaways that students should have after completing this lesson on….” So, knee-deep in the Paying for College unit, I thought that given its importance, FAFSA...

The Changing Nature of Investing: How Should We Rethink Teaching Our Students?

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Aug 26, 2014
I tweeted about this earlier but thought it was worth a broader discussion as I thought about how best to teach students about investing.  This statistic from a Morningstar caught my attention: John Rekenthaler stated in a post that indices are dominating fund sales. Some 68%—or $284 billion—of net US mutual fund sales for the 2014 fiscal year were exchange-traded funds and passive while only 32% were active funds. “The post-2008 pursuit of index funds was no mere infatuation,”...

Lesson Idea: Should Your Students Get A Credit Card In College (or sooner)?

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Aug 19, 2014
One great way to tackle this important question is to have students prepare for a class debate.  It would be best to have students research the position that are naturally opposed to.  So, if they think they want a credit card in college, have them research reasons why they should NOT get a credit card.   How to get students more excited about this project?  Based on current law, they will likely not be able to get a credit card until they are 21 UNLESS they can...

What’s New In Financial Literacy?

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Aug 19, 2014
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This Week In Financial Literacy
Increased education about financial concepts led to decreased rates of bankruptcy (Economist blog): “Yet those who take on the most debt are the young, people who need to make large investments in education and housing, but who generally lack any experience with financial matters. Fortunately, new research* shows that courses in finance at school can help solve this predicament, reducing the harmful repercussions from taking on too much debt later in life…” What two high schoolers tell...

Back To School…Checking Out Checking Accounts

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Aug 19, 2014
It’s back to school time, which means a plethora of articles about finding the best checking account for your rising college freshmen (it seems we are all procrastinators in matters like this).  What’s the biggest mistake people I think that people make in this process?  Going to a bank.  Come again?  How can going to a bank be a mistake.  Unfortunately, an incredibly high percentage of folks make their decision based on non-economic factors (branding, location, where their...

The Wheel of (Mis) Fortune OR Why You Should Avoid Payday Lenders

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Aug 08, 2014
Want to explain to your students about the dangers of payday lending?  This is not a bad place to start.  This process flow is taken directly from ACE’s training manual (recently fined $10 million by CFPB) and demonstrates the cycle of misfortune that comes from payday lending:   ...

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