Checking Accounts

/Checking Accounts
­

Activity Idea: Personal Finance In My Life

My travels took me to Chicago and New York recently and here are some images related to personal finance that I captured:

  • Thanks to the Federal Reserve Bank of Chicago for recently co-hosting the Financial Literacy Summit with VISA. I enjoyed moderating the panel on Expanding Access to Financial Education Programs (video for Session 6  here):

IMG_8357

  • Would you take tax advice from a “tax truck?” Seen on the streets of New York the weekend before Tax Day:

What Are We Watching? Three Of Our Latest Curated Videos

The NGPF Team is always scouring the web for videos to add to our Video Library. Here are the latest that the team has uncovered:

Pay Day 101: Direct Deposit (from Young Illinois Saves), duration of 3:48, provides a good description of how direct deposit works from the perspective of young adults:

Question: Can You Open A Bank Account Online?

Answer: You can, but it’s extremely hard at the 30 largest retail banking institutions. Note that the question was NOT “Can you open an online bank account online?” As that answer would obviously be YES.

From Credit Union Times:

According to a study of nearly 1,400 people who successfully applied for checking accounts at the nation’s 30 largest retail financial institutions, only 8% of successful applicants were able to complete the entire process from start to finish on their smartphones or tablets — a full 67% had to finish the process in another channel, such as going into a branch.

Regarding millennials, it appears that banks are happy to steer them to their branch system:

By |March 30th, 2017|Checking Accounts, Current Events, Question of the Day, Research|

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.

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: 

Just Say No To Overdraft Protection!

It’s a $33 billion error that consumers continue to make. From Wall Street Journal:

Banks and other financial firms in 2016 generated the highest level of fees in seven years related to overdrafts on checking accounts, marking a turnaround for a charge crisis-era regulation tried to rein in.

So-called overdraft fees totaled $33.3 billion in 2016, up about 2.5% from 2015 and by 5.4% from 2011, according to Moebs Services Inc., an economic-research firm. Overdrafts occur when consumers make transactions that are larger than their checking-account balance.

Try this tomorrow in your class:

The Money Question: Do You Want Overdraft Protection?

Thanks to Mountain View High for inviting me to their AVID class last week (and for the next 7 Thursdays) to teach personal finance. Today’s topic was “How To Manage Your Checking Account.” I started with the Bank role play activity to highlight the questions that students should be prepared to ask PRIOR to opening an account. Asking the right questions has to be the foundational skill we need to develop in any financial education course.

The students responses included the importance of FEES with several discussing the pain that they felt when overdraft fees hit their account. During the role play, I asked the “money question” that all new accountholders will be asked when opening an account: “Would you like overdraft protection?” 

Video Resources: Avoid Those Checking Account Fees

It’s often the first financial product that a young person will use. Maybe they start with a savings account but eventually they graduate and pair their savings account with a checking account. In that process of setting up this new account, the customer will be asked (or they should be) whether they would like “overdraft protection.” The term sounds innocuous and better yet lures them in after all who doesn’t want to be protected. Have your students watch one or more of these videos (hat tip to NGPF’s Jessica for curating these videos from December 2016) and odds are they will choose to “just say no” when it comes to overdraft protection.

This Pew Charitable Trust video from December 2015 interviews people “on the street” to get their thoughts on overdraft fees and policies. Also highlights the blind spots that consumers have when it comes to the “fine print” of checking account agreements. A great overview and only 3 minutes long! Pair this video with the NGPF Fine Print: Reading the Fine Print of Your Checking Account and you will have savvy students when it comes to checking fees!

Key questions for your students:

By |February 20th, 2017|Checking Accounts, Debit Cards, Research, Video Resource|