Video Resource

/Video Resource
­

Podcast: How Does Scarcity (Time, Money, Relationships) Impact Our Brain?

Thanks for my friend Dan Mennel for pointing this podcast out to me: Hidden Brain: Tunnel Vision (Episode 65, 36:34)

What I like about this podcast:

The first fifteen minutes of the podcast deal with the issue of money scarcity and describe how our brains are wired to handle it and how our responses often meet short-term needs at the expense of our long-term goals.

From Hidden Brain website: When you’re hungry, it can be hard to think of anything other than food. When you’re desperately poor, you may constantly worry about making ends meet. When you’re lonely, you might obsess about making friends. This week on Hidden Brain, we explore the psychological phenomenon of scarcity and how it can affect our ability to see the big picture and cope with problems in our lives.

  • Timeline:

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.

Video: Suburbs and Cities: Why Do We Live Where We Do?

Hat tip to Big Picture blog who brought this well produced and engaging 10 minute video to my attention. It provides an historical perspective on how cities developed and the factors that determine where people live in in the U.S. compared to Europe. This would be a good supplement to your budgeting lesson as housing costs tend to be the largest expense so where you live is consequential:

Questions for students:

  • Why did cities in Europe develop differently than those in the U.S.?
  • Where do rich people tend to settle in European cities? Why? How is it different in the U.S.?
  • What factors led to more suburbanization in the U.S. compared to Europe?
  • What is the unintended consequence of this move to the suburbs in the U.S.?
  • Where would you prefer to live: the suburbs or a city? Why?

_______

Check out the most popular NGPF Activity: Create A Salary-Based Budget

By |March 22nd, 2017|Budgeting, Mortgages, Purchase Decisions, Research, Video Resource|

What’s New With Credit Reports?

Here are a few new developments that we are tracking:

  • Consumers are about to benefit from changes afoot with credit reports (From WSJ [subscription] with hat tip to NGPF Team member, Sonia):

Videos: What’s New In Investing?

  • Warren Buffett’s Million Dollar Bet: Who’s Winning (from MarketWatch)?
    • What’s the bet?
    • What’s a hedge fund? What’s an index fund?
    • Who’s winning? Why?
    • Why should this matter to you as a regular investor? What’s the lesson?
  • Fee war breaks out on commissions to trade stocks (from CNBC):
    • How much are brokerage fees going down? Is this good news for investors?
    • Why do you think the online brokerage stocks are falling with this news?
    • Do you think investors will change brokers based on these cost reductions?

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|

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|