Nov 30, 2016
Question of the Day, Behavioral Finance, Research, WebQuest, Purchase Decisions, Current Events, Audio Resource
Answer (From Marketplace.org with 2 minute audio below): Over $42 Billion
What are examples of product that typically offer warranties?
Have you ever bought a warranty? For what product?
Do you think warranties are a good deal for consumers? Why or why not?
Do you think this is a profitable business for the warranty company? Why or why not?
My warranty story: I was fresh out of business school twenty years ago working with an investment management business. One of my first tasks...
Nov 09, 2016
Interactive, Behavioral Finance, Career, Question of the Day, WebQuest, Current Events, Chart of the Week, Audio Resource, Math
A good interactive from CNN to stimulate discussion in your classroom and infuse some math too (hat tip to a teacher at JumpStart National Conference who pointed this out to me; sorry that I didn’t catch his name:). As you move the slider bar on the left, the point of the graph moves up to show the percentile ranking:
What does the shape of the curve tell you about income distribution in the U.S.?
What are the income ranges that would put a household in the middle half of...
Nov 07, 2016
WebQuest, Behavioral Finance, Research, Investing, Teaching Strategies, Stocks, Current Events, Chart of the Week
A good reminder that the stock market is a risky place particularly when you invest in individual stocks. These three popular brands saw significant drops in their stock prices last week. My idea for the assignment:
Send your students on a Webquest to find articles explaining why these popular brands saw their stock prices get pummeled last week.
Go to Yahoo Finance and type in tickers GPRO, FB and FIT and then scroll down to Company News and skim 2-3 articles to discover the specific...
Oct 06, 2016
Debit Cards, Policy, Research, WebQuest, Checking Accounts, Purchase Decisions, Current Events
New regulations are on their way..here’s an FAQ to help you and your students sort it all out:
How big is the market for prepaid cards and who uses them? (Atlantic):
The market for prepaid debit cards has grown dramatically in recent years: The number of people using the cards in addition to their checking accounts increased by 50 percent between 2012 and 2014. According to a report from Pew by 2014, around 23 million Americans were regularly using reloadable cards, and more than...
Jul 31, 2016
Activities, Activity, Research, Budgeting, Credit Cards, Personal Finance, WebQuest, Checking Accounts, Payment Types, New Products, Current Events, Credit Reports
Reason #1: Money is pouring into start-ups to disrupt the financial sector.
Here’s a market map showing all the start-ups looking to disrupt the financial services industry (here’s recent financing activity) and they are targeting your students (millenials) for their services:
Ok, I know you can’t be expected to know who all of these new companies are, so why not use your students to do the research? We created a project for this very purpose, Online Tools and Apps, in which...
Jul 27, 2016
Paying for College, Research, WebQuest, Student Loans, New Products, Current Events
Lots of ink spilled last week on the announcement that Amazon is entering the student loan business. Use it as an opportunity for your students to get a better understanding of the student loan landscape and how to navigate the various loan types. Here are a few questions that your students can answer about this current event (see recommended articles below):
How is Amazon getting involved in the student loan business? Will they be making student loans directly to students?
Jul 18, 2016
Article, Career, Question of the Day, Budgeting, WebQuest, Employment
I was first introduced to the concept of the side hustle during my podcast with Ash Cash in November of last year. The gig labor force is becoming a larger and larger part of our economy as this infographic demonstrates. Three data points make a trend, so I connected these two dots with this recent article appearing in Quartz about millenials and their “side hustles:”
On weekends, Colleen teaches fitness classes. Mary builds websites. Luke sells vintage video games. Tony...
Jul 11, 2016
WebQuest, Research, Budgeting, Savings, Payment Types, New Products, Employment
Most Americans are used to the idea of having to wait to receive their wages until payday, often a bi-weekly or monthly affair. That’s starting to change, as more businesses are offering employees earlier access to their earnings. The practice doesn’t really have a name yet, though some refer to it as Instant Pay. Some of the services that offer it include Activehours, FlexWage and PayActiv.
The idea is that employees can get paid for some of the hours they’ve...
Jun 15, 2016
Purchase Decisions, Activity, WebQuest, Activities, Tips for Teachers
From the Consumer Financial Protection Bureau comes a worksheet to help car buyers compare loan details. Here’s the first page of the worksheet:
What is there to like about this tool?
It encourages car shoppers to comparison shop for their auto loan just as they would for their car. We know based on research that about half of home buyers don’t comparison shop for mortgages so one would presume that the number that comparison shop for auto loans is even lower (especially when the...
May 15, 2016
Behavioral Finance, Question of the Day, Investing, WebQuest, Stocks, Purchase Decisions, Current Events, Chart of the Week
Answer: Not at malls, apparently (chart courtesy of Bloomberg).
This chart shows how retail traffic (light green) and luxury retail traffic (dark green) have been dropping consistently over the past 18 months. Not only has foot traffic been dropping but so have retail stocks. Here’s a taste of the carnage that occurred last week (from NY Times):
RETAIL ROUT Shares of the department store chain Nordstrom dropped 12.9 percent after the company released disappointing quarterly results late...
May 10, 2016
Activity, Behavioral Finance, Investing, WebQuest, Teaching Strategies, Tips for Teachers, Cartoons
Hat tip to Big Picture Blog, which shared some cartoons highlighting the cognitive biases (see Bandwagon Effect above) that we all suffer from which impact our money management decisions.
So, how to incorporate into your class?
Here is an idea:
Have students work in pairs to do online research (a Webquest of sorts) about ONE cognitive bias. You can assign them to ensure that all ten are covered.
Their research should include:
Description of what the bias is.
Three ways that this bias can...
Feb 17, 2016
Question of the Day, Budgeting, Savings, WebQuest, Current Events, Chart of the Week
According to this survey (hat tip, Economist), they do in England:
From the Economist:
So, not only are Britain’s young labouring under the weight of poor job prospects and a bubbly housing market; instead of using what little disposable income they have to have a good time, they’re also being terribly responsible with their finances. How depressing is that?
Activity idea: Webquest to find comparable data in the US. Are millenials saving to the same degree in America?
Feb 06, 2016
Credit Scores, Policy, Research, WebQuest, Checking Accounts, Payment Types, New Products, Current Events
Flurry of news articles recently about checking account changes proposed by the Consumer Financial Protection Board (CFPB). Good opportunity to mix policy analysis with an understanding of checking account features (also might want to mix in the Spent documentary (from minute 7:00 – 13:00) which vividly demonstrates the cost of being unbanked. Ask students to identify the main elements of the CFPB proposal and whether they think this is a good idea. If you want to spice this up a...
Nov 10, 2015
Investing, WebQuest, Current Events, Article
Answer: That is the price that Activision Blizzard recently paid to acquire King Digital Entertainment (creator of Candy Crush Saga game).
Video game maker Activision Blizzard (ATVI.O) will buy “Candy Crush Saga” creator King Digital Entertainment (KING.N) for $5.9 billion, as the heavyweight of console and PC-gaming makes a major push into the faster-growing mobile market.
The deal is one of the biggest in the industry in recent years, more than twice the size of...
Nov 02, 2015
Question of the Day, Credit Cards, WebQuest, Payment Types, Current Events, Chart of the Week
From Washington Post: 37% as of September 2015, according to Square
From Washington Post:
New credit cards with chips may be safer than the old magnetic stripe variety we all know. But they’ve caught a lot of unwanted attention lately, getting blamed for slumping user growth at Netflix, overwhelming small businesses and sparking a new round of consumer scams.
The challenges that chip cards face may seem ubiquitous — at least in this latest news cycle. But how many people are...