Tim Ranzetta

/Tim Ranzetta
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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.

Video Resources: Avoid Those Checking Account Fees

It’s often the first financial product that a young person will use. Maybe they start with a savings account but eventually they graduate and pair their savings account with a checking account. In that process of setting up this new account, the customer will be asked (or they should be) whether they would like “overdraft protection.” The term sounds innocuous and better yet lures them in after all who doesn’t want to be protected. Have your students watch one or more of these videos (hat tip to NGPF’s Jessica for curating these videos from December 2016) and odds are they will choose to “just say no” when it comes to overdraft protection.

This Pew Charitable Trust video from December 2015 interviews people “on the street” to get their thoughts on overdraft fees and policies. Also highlights the blind spots that consumers have when it comes to the “fine print” of checking account agreements. A great overview and only 3 minutes long! Pair this video with the NGPF Fine Print: Reading the Fine Print of Your Checking Account and you will have savvy students when it comes to checking fees!

Key questions for your students:

By |February 20th, 2017|Checking Accounts, Debit Cards, Research, Video Resource|

Question: How Much Does Bad Credit Cost You With Auto Insurance?

Answer (from Consumer Reports): $2,090

A two-car couple with poor credit will pay an extra $2,090, on average, compared to a family with excellent credit. That’s more than what it usually costs to add a teen driver or even the penalty for having two DWIs.

Many people are surprised to discover the various ways that credit scores are used to gauge an individual’s trustworthiness (note that I didn’t say creditworthiness). Now, here’s some evidence that auto insurance companies price risk using credit scores and that a low credit score can really cost you.

I actually just had a insurer who provides homeowner’s insurance ask me for my credit score since they thought they could get me a lower premium. When I sent them my score, I was surprised to see a 30% reduction in my premium. Yay! Another reason to manage your credit well!

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Want to give your students experience reading a credit report? Here’s our Fine Print on Credit Reports.

 

By |February 16th, 2017|Uncategorized|

NGPF Podcast: Tim Talks to NGPF Fellow Charles Kafoglis About His Four Principles to Teaching Personal Finance

Charles

Thanks to Charles Kafoglis of Incarnate Word in Houston, Texas for sharing his insights recently on the NGPF podcast. I got to know Charles through his participation in our Summer Institute in 2016. I saw firsthand his passion for financial education and have enjoyed our ongoing dialogue about different approaches to teaching investing. In this podcast, Charles shares the four key principles that serve as the foundation for his personal finance course as well as how his course ties into the leadership program at his high school. Finally, he will share how he sets the tone for his course early in the semester and the resources he relies upon to do that. Enjoy!

Details:

Having Fun With Investing Cartoons

Here are three cartoons focused on investing and a few questions for your students to ponder:

  • What is happening in the cartoon?
  • What is the motive of the cartoonist?
  • What lessons can you glean from these cartoons to help your financial life?

060-investing-cartoon

In this case, the experts are right! Check out this NGPF Activity on Compound Interest. Create an activity to see what happens when parents invest in college saving or 529 plans when their children are born. 

By |February 15th, 2017|Cartoons, Investing, Mutual Funds, Teaching Strategies|

What’s the Catch?: Purchase 3 Bureau Reports

I saw this paid ad during a Google Search this evening:

Screen Shot 2017-02-13 at 9.56.35 PM

Hmmm…so what caught my eye? The “Purchase 3 Bureau Reports.” Many of you are probably wondering “Why purchase these reports when you can get credit reports from each of the three bureaus for FREE at annualcreditreport.com? ” and “Why would you want to buy them at the same time?” A best practice is to space out your FREE credit reports from the three credit bureaus every four months so you can be constantly monitoring them. To make matters even more confusing (or some might say misleading) the ad says in bold at the top “No Credit Card Needed” so why would I have to purchase something that is available for FREE elsewhere.

Click on “Purchase 3 Bureau Reports” and here’s what you get:

By |February 14th, 2017|Advertising, Credit Reports, Credit Scores, Current Events|

Ways To Make Investing Simpler

I have been thinking a lot about this issue of how to make investing simpler. I hear from teachers that this is a real pain point for them. I can see in the NGPF podcast stats that the most popular guests tend to be conversations about investing (Mike Finley, Jonathan Clements and Vanguard’s Jim Rowley to name a few). Then this weekend the lightbulb went off. I was heading to the coast listening to Charlie Ellis on the Masters In Business podcast (kinda dorky I know). Those of you not familiar with Charlie Ellis, he is probably the best investment management thinker you have never heard of. Charlie has played a role in two of the juggernauts of modern day investing, the Yale endowment and Vanguard Investments (the king of indexers just crossed $4 billion (I mean TRILLION!)). Oh, and he was an early investor in Berkshire Hathaway too (Warren Buffett’s company)!

Question: In What Year Was The First A.T.M. Installed (And Other Fun Facts About Banking)?

Answer: 1969.

Good opener to this 1,000 word article (about 5 minutes reading time) on the history of banking from NerdWallet. Here are a few interesting points (some of which I even remember!):

By |February 13th, 2017|Article, Checking Accounts, Current Events, Question of the Day|

Who’s the Fiduciary: The Butcher or The Nutritionist?

Opened the Saturday paper in search of good blog material and Ron Lieber of NY Times comes through again in his latest column “Pepper a Financial Adviser with Questions About Fees.” Fiduciary is a word being tossed around lots these days when it comes to the relationship between a financial advisor and their clients. It might surprise a lot of people that in the current regulatory environment, a financial advisor is NOT required to act in their clients’ best interest (hmmm…surprised?). This fiduciary standard (to act in best interests of your client) was about to be applied to advisors providing retirement investment advice but the new Administration appears keen on delaying this, according to CNBC.

By |February 13th, 2017|Article, Behavioral Finance, Current Events, Investing, Video Resource|