Payment Types

/Payment Types
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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: 

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:

What Percentage of IPhone Users Have Tried Apple Pay?

Answer (from WSJ): 13%

Back in 2014 (eons ago in the tech industry), we marked the launch of Apple Pay with a post that included several news summaries and the potential that Apple saw in the product. We had students analyze the stories and then answer that personal question “Would you use Apple Pay?” Apparently the answer for most IPhone users two years later is a resounding “No.”

Jessica also wrote a post in early 2015 asking the question “Can Teenagers Use Apple Pay?” Find out the answer here.

The article enumerates the reasons why the rate of adoption has not been faster:

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.

Chart: How Do Credit Card Companies Make Money?

Students need to understand the business models behind credit card companies as well as other financial service companies. Why? It provides a roadmap for consumers as to how they should use the financial product to AVOID becoming a profitable part of that business model. NerdWallet has a report out about credit card trends, which included this chart showing how credit card companies make money:

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: 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: