Digging Deeper: Two Cents Part II

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May 14, 2018
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Video Resource, Stocks, Mutual Funds, Entrepreneurship, Budgeting, Index Funds, Career

Since posting the first Digging Deeper on the PBS Series, a few new videos have been released.  That post seemed to be well received, so I thought I would review the new videos and post suggested questions and NGPF related links to save you a little time at the end of the school year!!!  As I mentioned before, there is a place on the Facebook page for the Two Cents video series for you to give feedback to Julia and Philip if you have big questions that you would like for them to answer. 

Is The Stock Market Just a Big Casino?

1) What percentage of Americans actually own stock?  Does this figure surprise you? Why or why not?

2) Since 1928, what was the average annual return to the S&P 500?

3) What are the pros and cons of investing in small/newer companies?  What about larger/established companies?

4) What are the two strategies one should use when investing in the stock market to minimize the risk involved in investing in stocks to begin with?  Explain each and why it helps.

Here is the NGPF Intro Lesson on the Stock Market and the NGPF Lesson on Stock Investing.  There are so many activities available on the subject on the NGPF site. I’m sure you can find an appropriate follow-up activity for your class among these.

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What the Heck Are Mutual Funds?

1) Explain the “investment stew” analogy used in the video.

2) How is investing in a mutual fund a safer/cheaper way to invest in stocks? (Which one of the two stock investment strategies above do mutual funds achieve for you?)

3) What are the differences between active and passive funds?  Which would you choose and why?

4) What are two ways you could start investing in mutual funds?

Here is a great NGPF Activity comparing active and passive funds, and another video on the subject if you are looking for more detail to follow up on the Two Cents video.

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Insta-Everything

1) Explain the basics of the on-demand economy.  Which two sectors are the largest? What socio-economic changes have driven the growth in the on-demand economy?

2) In deciding which of these services you can afford, Julia and Philip suggest that you first decide if you are using it for “Leverage” or for “Luxury.”  What is the difference?

3) What are some other calculations you should do before using some of these on-demand services?  What do they mean by “mind the gap?”

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Is Your Side Hustle Hustling You?

1) How many Americans report having a side hustle?  What are the two reasons people start a side hustle? Do you have a side hustle yourself?

2) What types of research should you do before starting your side hustle?  

3) How does a side hustle complicate your tax situation?  What steps should you take to make this easier to manage?

4) On average, what side gig currently pays the highest monthly income?  At what point might you consider jumping from your day job to your side hustle?

The ultimate in side-hustle simulation is the Financial Times Uber game!  Here is the NGPF guide to go with playing the game.

About the Author

Beth Tallman

Beth Tallman entered the working world armed with an M.B.A. in finance and thoroughly enjoyed her first career working in manufacturing and telecommunications, including a stint overseas. She took advantage of an involuntary separation to try teaching high school math, something she had always dreamed of doing. When fate stepped in once again, Beth jumped on the opportunity to combine her passion for numbers, money, and education to develop curriculum and teach personal finance at Oberlin College. Beth now spends her time writing on personal finance and financial education, conducting student workshops, and developing finance curricula and educational content. She is also the Treasurer of Ohio Jump$tart Coalition for Personal Financial Literacy.