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Question: How Much Does Adding A Teen To An Auto Insurance Policy Increase The Premium?

Answer (from NY Times; subscription): 78% or $671!

More from the Times article:

An annual analysis by insuranceQuotes.com, a rate comparison site, found that adding a teenager still increased annual premiums substantially, but the magnitude of the increase has been falling over the past few years.

Adding a single teenager to a policy caused annual premiums to increase an average of 78 percent, or $671. But rate increases have been decreasing since 2013, when the average increase was 85 percent.

Laura Adams, senior insurance analyst with insuranceQuotes, said that factors in the trend may include safer automobile technology, a dip in the number of teenagers getting driver’s licenses and the continued impact of “graduated” driving programs, which place restrictions on new drivers until they gain more experience on the road.

So, what strategies can your students use to minimize this cost? The article offers a few:

By |June 26th, 2017|Article, Insurance, New Products, Question of the Day|

Question: Will You Own A Car in the Future?

Interesting WSJ article (subscription) highlights how dramatically the concept of car ownership is changing in light of current ride-sharing trends and the potential for autonomous vehicles in the future. Here’s a graph that shows how new car buying has slowed dramatically among younger Americans:

Article: What Can $15,001 Of American Girl Purchases Teach Us About Credit Card Fraud?

This is how it all began, innocently enough (from MarketWatch; 7 minute read):

I was at my desk the other day when my phone buzzed out a warning: My credit card had just been charged $1. No such dollar had been spent by me, but I didn’t think much of the notification. Typically, such unexpected charges have perfectly legitimate explanations given my various subscriptions and recurring monthly charges, all of which come at different and unexpected times.

How does a $1 charge turn into $15,000 worth of American Girl dolls? Read the article and find out!

Questions for your students:

By |June 20th, 2017|Article, Credit Cards, Current Events, Identity Theft, Research|

Question: What Are The Summer Job Prospects for Teens?

Answer: According to Marketplace, prospects are GOOD!

From Marketplace:

By |June 15th, 2017|Article, Audio Resource, Current Events, Employment, Research|

Question: Should We Be Teaching Financial Habits or Goals?

I can always count on the Farnham Street blog for thought-provoking questions. Their recent post “Habits vs Goals : A Look at the Benefits of a Systematic Approach to Life,” caught my attention because it is something I struggle with. Namely, how can I operationalize ambitious goals into day-to-day habits? Goals can often seem daunting but when you break them down into daily or frequent habitual actions they suddenly seem easier.

Here’s the main takeaways from this five minute article:

Do Your Weekly Lunches Cost You $90,000 in Retirement Savings?

“US households spent $3,008, or about $8.35 a day, on average, eating out in 2015… Investing $3,008 each year… would add up 30 years later to… more than $250,000.  Similarly, investing $3.50 a day for 30 years instead of buying a latte would add up to savings of nearly $107,000”. (USA Today, June 2017)

_________

We all know that it is hard to save enough for retirement.  Financial education teachers also know that students sometimes struggle to relate decisions in their current, daily lives, with how much they will need when they retire much later in life.  This interesting article attempts to help close this inter-temporal gap by framing our current weekly spending choices in terms of equivalent dollar amount closer to retirement.  “Is eating lunch out two times a week worth losing out on a potential investment windfall of $88,000?”

_________

Questions for Students:

What I’m Reading This Week (ending June 9th)

  • What are the ramifications of an aging population around the world (Visual Capitalist
    infographic
    )? Among other elements, it has neat map showing percentage of population in each state over
    the age of 65: 
  • Hat tip to Hari (newest NGPF team member) for pointing out this article and interactive about robots taking over
    the workplace (Daily
    Mail
    ):

Researchers have warned that

A Whiff of Nostalgia: What The Heck Happened To Sears?

Ok, I’m dating myself here but had to include this story for those of my generation who recall the glee that came when the postman delivered the Sears catalog in time for the holiday season. I also recall 20 years ago getting the call to come to Chicago to Sears HQ to hear executives describe to investors that all was OK despite the billions in write-offs they announced overnight in their credit card unit (note to self: when retailers are worried about hitting their sales targets, they lower the standards on their credit card underwriting which boosts sales in the short-term and you can guess what happens in the long-term).  Now, 20 years later, the Washington Post is chronicling the downfall of Sears that includes distressing quotes from experts like this: