Chart of the Week

/Chart of the Week
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As More And More Spending Moves Online…

It becomes easier to spend mindlessly. This is a great graphic (for more, check out this CNN article) to get your class talking about their spending habits:

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Ask your students to think back to items they have bought online recently from Amazon (or other websites) and how many are

Chart: How Much of Millennials’ Food Budget Is Spent on Dining Away From Home?

Answer: 47%

From The Atlantic/BLS:

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The chart is interesting when you look at it over a 20 year arc (instead of focusing on the short term ups and downs), where seniors have actually increased their dining away from home more than the other age groups (on a percentage basis).

From the Atlantic:

Chart: How Strong Are American’s Problem-Solving Skills Using A Computer?

From Economist:

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Answer: Meh (or about average for OECD countries with about 33% of adults classified in the “High” category).

This Economist article focused on the need for retraining of low-skilled workers as the pace of automation accelerates and many of their jobs go the way of the buggy whip. As for how to accomplish this, Singapore has a promising example:

By |January 16th, 2017|Article, Career, Chart of the Week, Current Events, Policy, Research|

Question: How Much Debt Do Consumers Have?

A great opener to your Types of Credit unit. Start by asking your students to rank from largest to smallest the various types of consumer debt:

  • Credit Cards
  • Mortgages
  • Auto Loans
  • Student Loans

—————-

Answer and visual below (from Visual Capitalist and Equifax): $12.4 trillion (as of August 2016)

Chart: How Is Card Fraud Committed In US Compared to Rest of the World?

From Federal Reserve Payment Study 2016:

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Questions for your students:

Charts: What Are The Most Common Non-Cash Forms of Payment?

You might ask your students to rank order the following non-cash payment types from most common to least common and see how they do:

  • Credit cards
  • Checks
  • Prepaid debit cards (often called prepaid cards)
  • Debit cards (what comes with your checking account)
  • ACH (automated clearinghouse payments – see definition below)

_________

The Federal Reserve is out with their triennial report on non-cash payment trends and there are some fascinating charts within it (look for more over the coming week). Today, we focus on the big picture…what are the trends in how people are paying for stuff in a non-cash way? 

Question: How Much Are The “Big 5” Credit Card Companies Spending on Rewards Programs?

From Financial Times (sub. required):

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Answer: A LOT! Almost $23 BILLION in 2016 based on estimates from Instinet

These reward programs provide cash back or points (that can be exchanged for goods or services) to cardholders based on their spending habits. The FT article answers a few questions that students might have:

Question: Who’s Saving For Retirement?

I had the Honorable John Ninfo on my podcast recently who described his “Scared Straight approach” to teaching young people about the perils of credit. He saw the consequences in the decades he served as a Bankruptcy Court judge in the state of New York. After looking at this infographic from the WSJ and the accompanying article, the overwhelming evidence is that we should be employing similar scare tactics to the topic of retirement planning because we better hope that the next generation is better prepared for taking on this responsibility: