NGPF Fellow Amanda Volz took a fairly basic activity from our bank — COMPARE: Making Credit Decisions — and made it her own. Now, she’s sharing the strategy, guaranteed to liven up your classroom, with you. As an added bonus, the activity she’s referring to is now available in Spanish, too, so some of your English Language Learners can participate fully in this discussion-based fun. Read on for Amanda’s guest blog post…
I am always amazed when I am searching Google for interesting news stories about credit cards how frequently the articles detail how the “bad guys” manage to steal credit card information. Identity theft can seem like an adult problem to many teens (unless their parents or they have been personally victimized), so I thought this quick WebQuest might bring the topic home to them. I thought it would be interesting to provide an update to my earlier 2015 post titled (apologies to Paul Simon) “50 Ways to Swipe Your Credit Card (or Debit Card) Number.”
So, here’s the assignment:
I awoke this morning thinking “how can you make index funds more tangible for students?” Why do I care about this? Anyone who has heard my rantings before either in this blog or on the NGPF podcast knows that I abhor the Stock Market Game. It teaches all the wrong lessons about investing: the short term nature of it, the “luck” factor, the highest risk strategy wins and so on. At some point, I will create a game to counter these lessons that is focused on index funds. The trick is how to make it appealing to a risk-seeking teen audience who loves the “action” of buying and selling stocks. Unfortunately good investing isn’t really about “action”, my buddy Allan Roth has it right when he says, as investors we should “dare to be dull.”
So, here’s the kernel of the idea: Have students take on the role of an investment manager hired to do the following:
I am so proud of the NGPF team (Jessica, Sonia, Laura, Ren, Sid and Niko) that has worked feverishly to deliver a revamped Saving Unit that we released tonight. Why do we continue to revamp our lessons? The short answer can be found in our culture of continuous improvement as we are always looking for ways to make our lessons stronger (your feedback is critical in this process). Here is the longer answer:
Happy New Year! Welcome back to school. I know that banking tends to be a unit that many of you teach early in the semester so this data should prove particularly timely. I have posted on this topic several times but have some new data to report about the three largest U.S. banks and their fees from overdraft charges (from Financial Times, subscription required):
This quarterly data on the three largest banks shows how fees tend to grow over the course of the year as evidenced by the quarterly data from 2015. So, back to the question about how much they are charging for overdrafts…Let’s make the math easy and say $400mm per quarter or $1.6 billion a year for each of the three banks totaling $4.8 billion for the three of them combined. Some other nuggets from the FT article:
This one surprised me. Maybe we should continue to teach check-writing after all!
Answer (from Qualtrics survey): 42%
I meant to strike while the iron was hot, while this NY Times article, I’m 29 and I never learned how money works. It’s time to fix that., was all over my social media feed in mid-October. Whelp — It’s 7 weeks later, and here I am. Better late than never I suppose (that’s why Tim is the master blogger around NGPF, not me).
I like that the article exists, but I don’t like the idea of just giving it to my (hypothetical) students to read. It covers FAR too many topics in too much detail to be a concentrated “intro to personal finance,” and it seems silly to have your students read and take notes on it if they’ve never learned any of this stuff before (how will they even know what is “important?) or if they’ve learned it all before (why are they taking notes if they already know all this?). So, what would picky Jessica do with this awesome article? Here are a few of my ideas:
- Pull out the questions (sometimes they have follow-up questions embedded), and use it as a pre-test at the beginning of the term and a post-test at the end. Of