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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|

Question: What Is the Number One Reason Millennials Switch Checking Accounts?

Answer: No-fee ATMs

From Credit Union Times:

By |February 5th, 2017|Checking Accounts, Debit Cards, Question of the Day|

WebQuest: How To Protect that Credit (and Debit) Card!

I am always amazed when I am searching Google for interesting news stories about credit cards how frequently the articles detail how the “bad guys” manage to steal credit card information. Identity theft can seem like an adult problem to many teens (unless their parents or they have been personally victimized), so I thought this quick WebQuest might bring the topic home to them.  I thought it would be interesting to provide an update to my earlier 2015 post titled (apologies to Paul Simon) “50 Ways to Swipe Your Credit Card (or Debit Card) Number.”

So, here’s the assignment:

Question: How Much Do Banks Earn From Overdraft Charges?

Answer: Billions!

Happy New Year! Welcome back to school. I know that banking tends to be a unit that many of you teach early in the semester so this data should prove particularly timely. I have posted on this topic several times but have some new data to report about the three largest U.S. banks and their fees from overdraft charges (from Financial Times, subscription required):

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This quarterly data on the three largest banks shows how fees tend to grow over the course of the year as evidenced by the quarterly data from 2015. So, back to the question about how much they are charging for overdrafts…Let’s make the math easy and say $400mm per quarter or $1.6 billion a year for each of the three banks totaling $4.8 billion for the three of them combined. Some other nuggets from the FT article:

Question: How Long Does It Take a Hacker To Steal Your Credit Card Information Online?

Answer (from Newcastle University research): About 6 seconds (yikes!) [This should grab your students attention!]

From Thrillist:

According to new a paper authored by Newcastle University researchers, hackers can mine your financial information using simple guesswork, spread out across multiple websites. When the process, known as a Distributed Guessing Attack, is coupled with a specifically designed toolkit, it isn’t very hard to exploit the security systems of major e-commerce sites…

Here’s a 31 second video explaining the technique:

Question: What’s the Difference Between Debit And Credit Cards?

Students are often confused about this distinction between debit and credit cards. Here are some resources that help show the ways in which they differ:

Infographic: What’s Your Holiday Spending Habits?

Ok, I know that it isn’t even Thanksgiving yet and may seem a bit early for this, but I know the planners out there want to be armed with holiday-themed content! From NerdWallet’s 2016 Consumer Holiday Spending Report

Chart: How Do People Pay For Things (By Age)?

New Federal Reserve of San Francisco report is chock-full of graphs about payment preferences gathered from their 2015 Diary of Consumer Payment Choice. With so many graphs to choose from, I thought this one could kick-start a great discussion:

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Just to orient you as to what is being measured here, this graph focuses on the number of transactions rather than the actual value. So, while the percentage of cash transactions might seem high, most of these transactions were for small dollar amounts.

Here is the accompanying text from the report: