Savings

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Spanish Translations for Saving & Investing

Did you know that one of our most popular projects at the moment is Ravioli Den (technically called Joining the Market)? Did you know it is now available in Spanish (Unirse al mercado de valores)? NGPF is in the process of translating some of our best and most-used activities and projects into Spanish, so that teachers with English Language Learners in their classes can further support their students. This month we’re releasing 10 translations on the topics of Saving and Investing.

You can view our growing list of 30 translations here in our Spanish Translations Directory. Is there a topic you’d like us to tackle next? Email Jessica to have your favorite activity or project placed on the list. And to receive an automated email every time new resources are added, join our Spanish Translations mailing list.

Another helpful hint: You’ll know a resource is available in Spanish when you see an (Sp) after its title on our website. ¡Que bueno!

Spanish screenshot

By |March 19th, 2017|Activities, Investing, Savings|

What’s New In Behavioral Economics?

I thought I would highlight some recent behavioral economics resources that caught my eye recently:

  • ArticleHow Behavioral Economics Can Help You Retire Rich (Bloomberg article). Have your students read the article and ask them ONE action they will take based on these findings. Here are some of the interesting experiments described:
    • How to get people to save more with their tax refunds: “In one experiment, a control group of users was sent a simple text after a refund showed up in checking. It asked what percentage of the refund they’d like to save. The answer: an average of 10 percent. The experimental group was messaged before getting any refund check. Its text said that members might get a tax refund and asked what percentage of it they’d want to save. They answered 15 percent.”
    • How the 401(k) structure encourages savings: “A 401(k) plan is a pre-commitment device. “Imagine a world in which you didn’t have 401(k)s and every month you decided how much to save,” Ariely said. “It would be a terrible world, from a savings perspective.” Even better are automated programs that bump up contributions into 401(k)s. Fidelity Investments did some math on that. They used the example of a 25-year-old employee making $40,000 and getting annual raises of 1.5 percent after inflation. If she bumped up the percent of salary going into a 401(k) plan by 1 percent every year for 12 years, she’d have $1,930 more (PDF) in monthly retirement income.
By |March 8th, 2017|Article, Behavioral Finance, Savings, Video Resource|

Question: What Percentage Of Workers Contribute To a 401(k) Plan?

Answer (courtesy of Bloomberg): About 1/3

Why is this important?

Pensions are becoming increasingly scarce for young people, so the 401(k) will likely become the primary source of financial support for retirees outside of Social Security:

According to a Pew Charitable Trusts analysis of survey data released Feb. 15, only 10 percent of workers over age 22 have a traditional pension. Just 6 percent of millennials have a pension while 13 percent of baby boomers do.

Why are so few contributing to their 401(k)? Here are a few theories:

Happy Birthday Dad!

I often get the question “Why did you start Next Gen Personal Finance?” It usually comes after I describe an eclectic career which has found me driving shredding trucks, analyzing executive compensation packages and making investment decisions at a mutual fund company. To answer the question, you have to start with the man who would have celebrated his 88th birthday yesterday. He was raised during the Depression and forced to the countryside when the Nazis bombed his home city of London during the Battle of Britain. He didn’t talk much about his childhood yet it was easy to see how these events were seared into his psyche and explained his frugal nature. 

By |February 21st, 2017|Savings|

Lesson: What If You Only Had An Hour To Convince Your Students to Save?

Earlier this month, we had the opportunity to get back into the classroom at Eastside Prep in East Palo Alto, California (where I came up with the idea for Next Gen Personal Finance). We’re teaching seniors all they need to know about personal finance over 6 weeks (24 hours of content) including lessons on savings and checking accounts, taxes, budgeting and investing. We’ll be releasing this 24 hour curriculum later this spring to help those educators who only have a limited time to spend on personal finance.

Our first savings lesson focused on four learning objectives:

  • Importance of saving
  • Power of compound interest
  • Understanding different types of savings accounts
  • How to make saving automatic

Here is a summary of this lesson which will be part of a 24 hour curriculum that Sonia is currently packaging and will release later this spring. I provide this summary in case you are teaching savings now and looking for some ideas to supplement what you are currently doing:

By |January 29th, 2017|Activities, compound interest, Lesson Idea, Savings, Teaching Strategies|

Videos: What Was Considered Good Financial Advice In the 1940s and 50s?

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Put this in the category of “not so current events.” Something about my impending birthday has me getting nostalgic for the “good ole days.” I stumbled across this trove of videos from the 1940s which would have been the financial advice that my teenage Mom would have been given. Here are some of the highlights that I thought you would enjoy (with questions):

  • Keeping a Budget: Your Thrift Habits (it’s 10 minutes long, but the first five minutes will give you plenty to discuss):
    • How was Ralph able to buy his camera?
    • What was the budget method that worked for Ralph (full disclosure: this was how I kept track of my newspaper route revenues)?  How did he track his progress toward saving for his camera?
    • Is it easy to make a budget work? Why or why not?
    • What are Jack’s sources of income?
    • What are Jack’s regular expenses? irregular expenses?
    • Why did Jack find it difficult to save?
    • What would be on your list of “Watch these expenses?”
    • Identify an item that you would like to save for and break it down to how much you need to save per week.
By |January 23rd, 2017|Budgeting, Checking Accounts, Investing, Savings, Stocks, Video Resource|

Looking to Save Money…Start With A Small Step

Reading one of my favorite newsletters, Farnam Street, last week and came across some good advice regarding that most difficult of human habits: Savings. Here was  their $1/day strategy:

Small Steps for saving money:

By |January 22nd, 2017|Behavioral Finance, Savings|

NGPF Product Launch: NGPF Releases Revamped Savings Unit

I am so proud of the NGPF team (Jessica, Sonia, Laura, Ren, Sid and Niko) that has worked feverishly to deliver a revamped Saving Unit that we released tonight. Why do we continue to revamp our lessons? The short answer can be found in our culture of continuous improvement as we are always looking for ways to make our lessons stronger (your feedback is critical in this process). Here is the longer answer: