Budgeting

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Chart of the Week: What Are Your Two Favorite Platforms for Watching “Television?”

 

The answer to this question has budgetary implications given how the cost differential between the platforms. If you are a millennial, your top four platforms, based on a recent survey, are:

  • Netflix
  • Cable TV
  • Hulu
  • Amazon Prime

Hat tip to VisualCapitalist for this infographic: 

Question: Would You Rather Have $1 Million Or $5,000 Monthly In Retirement?

Interesting WSJ article that has a behavioral finance bent to it. Before I give you the answer, write down your own response to this question. Your choice will explain a lot about how you think about money. First, the reasons those two choices were given was no accident. According to the article, the $1 million lump sum and $5,000 monthly payment are roughly equivalent when it comes to annuity pricing.  So what does your choice tell you?

  • Choose $1 million and you suffer from an “illusion of wealth.” What is that?
By |April 5th, 2017|Behavioral Finance, Budgeting, Question of the Day, Research|

Interactive: What Do Consumers Spend Their Money On?

If you are a data geek, you will love this interactive tool/data visualization from Flowing Data (be sure to click on the link to take advantage of the interactive nature of the tool):

Screen Shot 2017-04-04 at 4.26.15 PM

Let me provide some context for what you are looking at. Here are the data sources:

What does that cute, cuddly, adorable pet actually cost you?

Today, we’ve got a special treat — a guest blog post AND a teacher-generated resource — straight from NGPF Fellow Sue Suttich of Tigard High School (OR). Read on for a great activity on calculating the true cost of pet ownership!

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Each year in my Wealth Management class I have the students make a vision board. We talk about goals and what they want in life. Then they each write some short, medium and long-term goals and turn those goals into a vision board with pictures and prices that match these goals. We share them out in class and discuss how similar and different each person is in class with their “vision” of their life. One thing I noticed is a lot of students want to have a pet some day. But, the price they put down for pet ownership is really unrealistic! So I decided that it was time to make up a lesson where they could do some research on what a pet might really cost them! I shared my lesson with Jessica and she gave some advice and ideas on what else might be added or changed. The result is what looks like a fun, yet

By |April 4th, 2017|Activity, Budgeting, Featured Teachers, Lesson Idea, NGPF Fellows|

Resource Lists for Financial Educators (courtesy of Barbara O’Neill of Rutgers Cooperative Extension)

What does a distinguished professor do during her sabbatical? Curate personal finance resources, of course! In this blog post, Barbara O’Neill shares the fruits of her hundreds of hours of labor in putting together three awesome resource lists (see bottom of post for links to her lists), including what what she considered the “best of the best” from the NGPF library. As she describes below, the purpose of her odyssey was to replenish her “well” of creative learning activities. I hope that your “well” overflows as you find resources that will work in your classroom. Thank you Barbara for this tremendous gift to the community! Your commitment and dedication to improving financial literacy in this country inspires us.

Articles: The History of the Department Store and the Modern Day Department Store Destroyer

Two articles that I thought your students might enjoy since shopping seems top of mind for many teens. I think these would be particularly good as a supplement for your investing or entrepreneurship lessons. One article describes the rise of the department store (Inventing the Department Store in Barrons; about 5 minutes reading) and the other describes the modern day Leviathan that is destroying department stores and other competitors too (Amazon: Primed from the Economist (three articles free per week); about 15 minutes reading).

A Q&A follows focused on the key takeaways from the readings.

Some highlights from the Barrons article:

What led to the first department stores being opened in London? 

As affluence increased in the 18th century and the Industrial Revolution made more goods available, shopping began to evolve into what would become the department store. The first ones began by catering to the most common type of shoppers, women. The first real department store, Harding, Howell & Cos.’ Grand Fashionable Magazine, opened in London in 1796. Its four departments carried furs, jewelry, dresses, and hats, and accessories such as lace and gloves.

Who brought concept to US? Alexander Stewart

What was his insight that led to their popularity? 

Question: What Financial Products Should A Young Person Use To Manage Their Money?

Hanging out on the Boglehead Forum today skimming the topics that have received the most replies. Forums seem so “old school” in this age of social networks (Facebook, Twitter, SnapChat) but the ones that have survived and thrived have done so for a reason. For those not familiar with the Boglehead Forum, the forum is named in honor of John Bogle, founder of Vanguard Investments, and attracts knowledgeable, thrifty investors passionate about sharing their knowledge in a variety of topics. Anytime I descend into the rabbit hole of a forum thread, I find myself wiser for the time invested. Students need to know where to go for reliable, credible sources for financial information.

I thought your students would benefit from this thread titled “College-bound teens and finances,” since it takes a holistic view on how to set up a young person for financial success from a parent’s perspective (other people’s parents which probably helps:) Here was the opening question on the thread: 

Video: Suburbs and Cities: Why Do We Live Where We Do?

Hat tip to Big Picture blog who brought this well produced and engaging 10 minute video to my attention. It provides an historical perspective on how cities developed and the factors that determine where people live in in the U.S. compared to Europe. This would be a good supplement to your budgeting lesson as housing costs tend to be the largest expense so where you live is consequential:

Questions for students:

  • Why did cities in Europe develop differently than those in the U.S.?
  • Where do rich people tend to settle in European cities? Why? How is it different in the U.S.?
  • What factors led to more suburbanization in the U.S. compared to Europe?
  • What is the unintended consequence of this move to the suburbs in the U.S.?
  • Where would you prefer to live: the suburbs or a city? Why?

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Check out the most popular NGPF Activity: Create A Salary-Based Budget

By |March 22nd, 2017|Budgeting, Mortgages, Purchase Decisions, Research, Video Resource|