Chart of the Week

/Chart of the Week
­

Question: What Percentage of High School Seniors Have A Driver’s License?

Answer (from Pew Charitable Trust): 71.5%, a significant decline from 85.3% in 1996.

See chart below the line:

What Percentage of 18-22 Year Old’s Credit Applications Declined?

Answer (from ID Analytics report): 72%

Screen Shot 2017-03-01 at 8.47.22 AM

Questions for students:

Question of the Day: Why Are Car Insurance Rates Going Up?

Answer: More accidents due to “distracted” drivers.

Ok, I know you are not teaching a driver’s ed course, but this is an incredibly important message to get across to new drivers: Don’t Text While You Drive! Here’s the data showing the increase in car-insurance premiums due to more driving and more crashes (from WSJ (subscription)):

What If…You Had Invested With Warren Buffett in 1965?

Interesting thought experiment (wishful thinking!) that demonstrates the power of compound interest and also that getting the market return over a long period of time hasn’t been a bad strategy either.

Warren Buffett is out with his annual letter for 2016  which is a must-read for investors because of the common sense, homespun advice from the best investor of our time. For those not familiar with Mr. Buffett’s investing prowess, check out the first page of his report which has performance data on his holding company Berkshire Hathaway Hone in on the Compounded Annual Gain (CAG) number at the bottom of the first page and check out the middle column, Per-Share Market Value, and you will see that his CAG from 1965 – 2016 has been 20.8%. Let’s have some fun with an investment calculator and pretend that you were Warren’s neighbor in 1965 and decided to invest $1,000 with Warren (equivalent to $7580 in today’s dollars) AND have continued to hold onto that investment.

Care to guess how much that $1,000 investment in 1965 compounded at a 20.8% rate annually for over 50 years amounts to?

By |February 28th, 2017|Activity, Chart of the Week, compound interest, Current Events, Investing|

Chart: How Have World Stock Markets Changed Over The Past 100 Years?

Interesting graphic from a Credit Suisse report comparing the relative size of stock markets in 1899 vs. 2016 (great for a history course):

Screen Shot 2017-02-23 at 9.40.56 PM

Questions to ask:

What’s Trending on the NGPF Blog?

Here are the top 5 posts from January:

  1. Question: How Much Does It Cost To Raise a Child Born in 2015?
  2. Chart: How Does the Typical American Household Spend Their Money (and How Has It Changed Over Time)?
  3. Videos: 4 Simple Rules of Investing from Marginal Revolution University
  4. Videos: What Was Considered Good Financial Advice in the 1940s and 1950s?
  5. Chart: How Strong Are Americans Problem-Solving Skills Using a Computer?

We saw the popularity of #1 (it was 3X more popular than #2) and created a Question of the Day so educators could use it to engage their students. This is a great example of how we use the research that goes into writing daily blog posts to inform our curriculum to ensure that we stay relevant and current. The Marginal Revolution University videos (#3) are a new source that I came across during my travels to Rhode Island in December. I will be reviewing more of those in the weeks ahead.

________

We post two informative articles daily on the NGPF Blog. Want to receive them in your inbox every morning? Register on the NGPF Blog here.

By |February 9th, 2017|Budgeting, Career, Chart of the Week, Investing, Video Resource|

Interactive: How Much Have Incomes Changed for Specific Jobs Over the Past 50 Years?

Interesting interactive from Flowing Data demonstrating how income in various occupational categories has changed since 1960. Here’s what income distribution looked like in 1960 for several occupations (more occupations included on the website):

Screen Shot 2017-02-08 at 8.09.15 PM

Student can click on the SELECT YEAR button and see how these income distributions change over time.

Questions for your students (be sure they go to the interactive to answer the questions):

By |February 8th, 2017|Career, Chart of the Week, Interactive, Question of the Day, Research|

Chart: Explaining the Investing Concept of Risk and Return

Source: Fidelity:

chart

One of the core concepts in finance is the relationship between risk and return. The higher the risk of an asset, the higher the