Tim Ranzetta

/Tim Ranzetta

About Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

NGPF Podcast: Tim Talks To Social Entrepreneur Ted Gonder, Co-Founder of Moneythink

I had a great time talking with social entrepreneur, Ted Gonder, who co-founded Moneythink. Moneythink is a non-profit organization helping firstgen high school students navigate “to and through” college. Ted shares what he has learned since starting Moneythink out of his college dorm room at the University of Chicago and his personal odyssey to pursue the “road less traveled.” He discusses the thinking behind the new service delivery model for Moneythink and why the “college decision” is the most pivotal one for the students he serves. As a passionate advocate and keen observer of the financial education field, Ted has some great insights on how the industry can improve too. Enjoy!


Bell Ringer Idea: A Stranger Wants To Borrow Money From You, What Questions Would You Ask Them?

Teachers often mention how they struggle to explain credit scores and credit reports and how to engage high schoolers in these foreign concepts. I used this bell ringer in class on Friday for our lesson on Credit Reports/Credit Scores and it got class off to a great start.

Why? Well, most of the questions that students came up with matched perfectly with the factors that determine a credit score. This made it much easier for them to grasp why these factors matter. They had to take on the role of a lender trying to figure out whether to lend money to a stranger which is analogous to the reason that we have credit scores today.

Here are some questions that students came up with:

By |July 24th, 2017|Uncategorized|

Videos, Videos, Videos

Stumbled upon this video trove on Ozy this morning that had some short, relevant and engaging videos that I thought your students might enjoy. Many of them ask provocative questions that can be good entry points for a class discussion:

  • Future of Money (3:03)
    • In your own words, what is bitcoin and other cryptocurrencies?
    • Why is it popular?
    • What is an example of an “intermediary” in the money business that bitcoin is trying to eliminate?
    • Where do you think that you will keep your money in 2025?
    • Check out this NGPF primer on cryptocurrencies.
  • Ditch the ‘Ol Job Interview (1:35)
    • What are the criticisms they are making about the current interview process?
    • What is their recommendation for how to structure interviews?
    • Do you think this is a good idea? Why or why not?
    • Would you be comfortable if you went into an interview not knowing what to expect?
    • Now pretend you are an employer. Create an improv scenario to test on interviewees. Next, try it with a classmate.

Question: Are College Costs Rising?

From WSJ (Subscription required):

Questions for students:

Question: How Does America Pay for College?

Good bell ringer to get the conversation started about paying for college. Can start the class by asking your students how they think families will pay for college:

  • What are the sources that families tap into?
  • What are 3 most important categories?

Once they have given their answers, you can move on to the chart below.

Sallie Mae out with their tenth annual study showing how families are covering the cost of college. Lots of interesting graphs, charts, infographics that I will be sharing over next few weeks. Here’s a chart with an answer to the question posed in the title of the post:

Question: How Risky Is The Stock Market?

Answer: It depends on your time horizon. Short term, it’s risky. Long-term, not so much.

Great chart here (from Barclays) demonstrates how your probability of making money (“gains”) in the stock market increases the longer your time horizon:

“This chart shows the proportion of gains and losses we observe for the same investment (the MSCI World Developed Equities Index) as we change our monitoring horizon from 1 day to 5 years:”

Let me explain:

Question: Can Stock-Picking Make You Feel Like A Loser? The Psychology of Investing

Interesting read (about 5 minutes) from Of Dollars and Data that describes why passive investing is less likely to leave you with psychological scars that lead to sub-optimal decision-making:

Think of it this way: If you put a sizable portion of your net worth into individual stocks, and those stocks underperform the market, this would challenge your identity. You might start to think that you were a loser because you made a choice that lost you money. This explains why investors tend to sell their winners and hold their losers for far too long. They are hoping that the losing stocks will rebound so that they will be vindicated as good active investors.

This point particularly resonated with me because I have such a large percentage of my portfolio in index funds and yet what attracts my attention on a daily basis; I can’t stop myself from checking my stock positions that make up less than 1% of my portfolio:

By |July 19th, 2017|Behavioral Finance, Current Events, Investing|

Question: Why Are So Many Successful People College Dropouts?

Answer: As the data below shows, most successful people are NOT college dropouts.

Jobs, Gates, Zuckerberg. I imagine you’ve heard just a few students over the years come in and question the value of going to college by noting that these great tech innovators left their college before graduating (Reed College, Harvard and Harvard respectively). Well, now you have some data to counteract this myth of the successful college dropout (hat tip to CB Insights who included this chart in their newsletter):

By |July 19th, 2017|Chart of the Week, Current Events, Entrepreneurship, Research|