As you may or may not know, NGPF has a team of hardworking high school interns that help us with all manner of business. Today, a hat tip goes to Sid, who found this article from the NY Times — San Diego Voters Reject Funding of New Chargers Stadium.
Not a bad starting point for thinking about what to include when designing a personal finance curriculum. Better yet, share this with your administration to lobby for a personal finance graduation requirement.
We hear that advice all the time (a quick google search found it here and here and here). Yet, we didn’t see any resources out there that would actually develop the critical thinking skills required to navigate the complex world of financial products. So, today we launched a new product “The Fine Print,” mini-lessons to give students practice with the important forms, statements and agreements they will encounter in their financial lives. Given that our website is hitting records today, this product is clearly popular with teachers!
What are the features of “The Fine Print?”
A good simulation after your students have some background knowledge on retirement plans. Here’s a good simulation from Betterment t that asks a series of questions and then provides a recommendation on where someone should put their savings. Here is what the calculator is trying to achieve:
This calculator aims to answer three important questions regarding your individual situation:
1) How much can you contribute to each type of Individual Retirement Account (IRA) account for the current tax year?
2) If you have an employer-sponsored plan, such as a 401(k) (most common), 403(b) or 457(b) (less common), should you invest in this plan, or an IRA, or both?
3) Which account is likely to be the most tax-efficient for contributions?
Let’s take a high school student scenario where she earns $3,000 in a summer job and want to invest $1,000 towards retirement (since they know the power of compound interest)! Also, assume that the young worker’s company doesn’t offer a 401k plan.
Here is the advice that the calculator came up with:
We recommend investing $1,000 in a Roth IRA for you for 2016. You won’t get a tax
Thanks to LaTisha Styles for joining the NGPF podcast. We had a great conversation about a variety of topics from the highs and lows of her entrepreneurial journey as founder of Young Finances to providing ideas (and resources) on how to explain taxes and investing to young people. Listen to this podcast to hear about LaTisha’s educational pivot and how her college experiences can be instructive about factors for your students to consider when selecting a college major. She provides excellent tips to educators, including the importance of storytelling to engage students. Finally, as founder of Young Finances, her success can serve as an inspiration to young women who might have the desire in the future to pursue the entrepreneurial path. Enjoy!
How can you legally cheat the taxman? Here are two ways to reduce your taxable income legally!