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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|

Who’s the Fiduciary: The Butcher or The Nutritionist?

Opened the Saturday paper in search of good blog material and Ron Lieber of NY Times comes through again in his latest column “Pepper a Financial Adviser with Questions About Fees.” Fiduciary is a word being tossed around lots these days when it comes to the relationship between a financial advisor and their clients. It might surprise a lot of people that in the current regulatory environment, a financial advisor is NOT required to act in their clients’ best interest (hmmm…surprised?). This fiduciary standard (to act in best interests of your client) was about to be applied to advisors providing retirement investment advice but the new Administration appears keen on delaying this, according to CNBC.

By |February 13th, 2017|Article, Behavioral Finance, Current Events, Investing, Video Resource|

What’s Trending on the NGPF Blog?

Here are the top 5 posts from January:

  1. Question: How Much Does It Cost To Raise a Child Born in 2015?
  2. Chart: How Does the Typical American Household Spend Their Money (and How Has It Changed Over Time)?
  3. Videos: 4 Simple Rules of Investing from Marginal Revolution University
  4. Videos: What Was Considered Good Financial Advice in the 1940s and 1950s?
  5. Chart: How Strong Are Americans Problem-Solving Skills Using a Computer?

We saw the popularity of #1 (it was 3X more popular than #2) and created a Question of the Day so educators could use it to engage their students. This is a great example of how we use the research that goes into writing daily blog posts to inform our curriculum to ensure that we stay relevant and current. The Marginal Revolution University videos (#3) are a new source that I came across during my travels to Rhode Island in December. I will be reviewing more of those in the weeks ahead.

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By |February 9th, 2017|Budgeting, Career, Chart of the Week, Investing, Video Resource|

Time Launches Coinage, A Video-First Site Dedicated To Personal Finance

From Press Release:

Today, Time Inc. (NYSE:TIME) launches Coinage, a new video-first brand covering personal finance that runs across 22 Time Inc. sites. Coinage will feature 600 short-form videos throughout 2017 to help guide everyday choices consumers make in spending, saving and investing for themselves and their families across all stages of life in a lighthearted and entertaining fashion.

Here are the first three videos they released. Each are between 1-2 minutes:

Videos: 4 Simple Rules of Investing From Marginal Revolution University

I have been meaning to check out these videos since I met a representative from Marginal Revolution University (MRU) at the RI JumpStart conference in December (yes, my to-do list is TOO LONG!). Tyler Cowen, a well-known economist out of George Mason and blogger, is the intellectual force behind this endeavor. Since I know investing tends to be the “achilles heel” for many teachers, I thought I would focus first on the MRU videos on this topic.

What do I like about these videos?

  • The simple “four rule” approach to investing and the recommendations he provides on how people should invest
  • Real-life examples to demonstrate key points
  • Charts and graphs are used effectively to provide evidence
  • Duration of videos is 4-6 minutes and just focus on 1 rule at a time
  • Five practice questions at conclusion of each video

I provided some notes on their key points and some ideas on NGPF activities that you can pair with these videos, so students can apply their learning.

  • How Expert Are Expert Stock Pickers (6:28)
    • Rule #1 for Smart Investing: Ignore the expert stock pickers
      • Burton Malkiel’s book A Random Walk Down Wall Street and the “Blindfolded dart-throwing monkey” story
      • Mutual funds: Difference between active and passive funds, most years S&P500 beats the actively managed funds, past performance doesn’t predict future performance
      • Hard to differentiate luck from skill: Coin flip example and laws of probability
      • Don’t pay big bucks for professional money managers
  • Can You Beat the Market? (6:07)
    • Rule #2: It’s hard to beat the market
      • Example of thematic investing about aging of U.S. population
      • Efficient Market Hypothesis: won’t be able to systematically outperform the market; both buyers and sellers have information for their decisions
      • What about hot stock tips? Space Shuttle Challenger example and stock price reactions; what happened six months later?
      • Random walk with a positive upward drift: what does that mean?

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

Screen Shot 2017-01-23 at 6.09.19 PM

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|

Charles Kafoglis, NGPF Fellow, explains his school’s unique perspective on fin lit

Two in one week! A second NGPF Fellow, Charles Kafoglis, has submitted a guest blog spot, and we’re happy to have it. Charles is a teacher at an all-girls Catholic school in Houston, TX — Incarnate Word Academy — and they’ve got a really unique leadership model that weaves throughout their entire school culture and course curricula. Charles shares that outlook, as it pertains to the personal finance class he teaches, as well as two interesting videos, in the guest post below:

Question: When It Comes To Giving, Is It Better To Give Time or Money?

From WSJ (subscription):

It’s the holiday season; a time when many open their checkbooks (or go online to make payments) to support their favorite charities. Researchers have found three mistakes commonly made by charitably minded people: