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Question: How Much Does Bad Credit Cost You With Auto Insurance?

Answer (from Consumer Reports): $2,090

A two-car couple with poor credit will pay an extra $2,090, on average, compared to a family with excellent credit. That’s more than what it usually costs to add a teen driver or even the penalty for having two DWIs.

Many people are surprised to discover the various ways that credit scores are used to gauge an individual’s trustworthiness (note that I didn’t say creditworthiness). Now, here’s some evidence that auto insurance companies price risk using credit scores and that a low credit score can really cost you.

I actually just had a insurer who provides homeowner’s insurance ask me for my credit score since they thought they could get me a lower premium. When I sent them my score, I was surprised to see a 30% reduction in my premium. Yay! Another reason to manage your credit well!

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Want to give your students experience reading a credit report? Here’s our Fine Print on Credit Reports.

 

By |February 16th, 2017|Uncategorized|

Spreadsheet Application: How A Millennial Paid Off $113,000 In Student Loans In 7 Years

This caught the attention of the NGPF Team this afternoon. Anytime I see headlines like this with details about loan amounts, interest rates, monthly payments, I wonder “Can I replicate this in a spreadsheet?” (Here’s another example of a spreadsheet created to show how a janitor could leave an $8 million estate). One of the key questions that your students might be curious about is “How did a $68,000 loan turn into $113,000 in payments, especially since it was paid off in only 7 years?”

Here’s the spreadsheet that I created

Let’s unpack this mystery. First, how I derived my assumptions from the article about Jessica B:

By |February 12th, 2017|Uncategorized|

Podcasts I’m Teeing Up For This Weekend

What I am listening to this weekend:

  • “Be sure to check out our Masters in Business interview this weekend with Danny Kahneman, behavioral and cognitive psychologist, author of “Thinking, Fast and Slow” and winner of the 2002 Nobel prize for economics” (Hat tip to Big Picture Blog)
  • Radiolab Presents: Ponzi Supernova – interviews with Bernie Madoff who perpetuated the largest Ponzi scheme in history: sociopath or victim? You be the judge!
  • Steve Kerr on the Axe File – whether you like the Golden State Warriors or not, you will enjoy this interview with an amazing coach (and person).
  • Making Bank from Planet MoneyToday on the show, we trace the evolution of banks from the Knights Templar to today. It’s the story of how a band of warrior monks working out of a very old church in London changed the way we think about money. There’s bloodshed, world domination, and lots of accounting.”

Enjoy the weekend!

By |February 10th, 2017|Uncategorized|

Our Job Just Got A Lot More Important

The pendulum of regulation is swinging away from the framework put in place post-Great Recession. From WSJ:

“President Donald Trump signed an executive action that establishes a framework for scaling back the 2010 Dodd-Frank financial-overhaul law, part of a sweeping plan to dismantle much of the regulatory system put in place after the financial crisis. Mr. Trump also signed another executive action aimed at rolling back a controversial regulation scheduled to take effect in April that orders retirement advisers, overseeing about $3 trillion in assets, to act in the best interest of their clients. Critics have said the regulation would upend the retirement-account advisory business.”

Why do I say our work just got more important? Well the counterweight to less regulation is EDUCATION. When retirement advisers don’t need to act in the best interests of clients, the clients better learn enough to be able to make their OWN decisions that ARE in their own best interest. My motivation level just kicked up three notches.

By |February 3rd, 2017|Uncategorized|

The Next 10 Years…

What better way to celebrate a milestone birthday then to set a daily record for page views and visitors to our website! A huge thank you to the growing wave of educators choosing the NGPF curriculum in their classrooms. I thought it would be fun to envision what the next ten years will look like for NGPF and the greater financial literacy movement. Here are our BHAGD (big hairy audacious goals and dreams):

By |January 26th, 2017|Uncategorized|

What’s the Average A.P.R. on Credit Cards In the U.S.?

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Answer (from Creditcards.com via Motley Fool): 15.36% (a record high!)

A good reminder for students about a few key characteristics of credit cards:

  • Why are rates going up? Blame the rewards programs as one reason:
By |January 24th, 2017|Uncategorized|

What’s the Catch: What’s Wrong With This Retirement Picture?

Occasionally I come across items on financial websites that I can only shake my head at…see if you can catch the disconnect:

screen-shot-2017-01-10-at-6-08-20-pm

So, did you catch it?

By |January 12th, 2017|Uncategorized|

Earn DonorsChoose Credits For Teaching Your Students Essential Financial Skills

Next Gen Personal Finance (NGPF) is committed to expanding access to high quality personal finance educational content. Through our partnership with DonorsChoose.org, we will be bringing our engaging and easy to implement activities to thousands of classrooms. We know that you understand the importance of financial literacy, so we developed a list of our most popular resources for you to use with your students (see list below). To thank you for bringing this gift of financial literacy to your class, we are offering DonorsChoose.org funding credits which you can apply to a classroom project of your choosing. All teachers who work with students in grades 9-12 are eligible for this rewards program. 

Three Steps Is All It Takes!

  1. Sign up for the Next Gen Personal Finance program. We only have 2,500 spaces available so be sure to sign up ASAP.
    • We’ll close the signup form and update this page once all the slots have been filled, so rest assured that if you’re able to sign up, spaces are still available. 
By |January 7th, 2017|Uncategorized|