Post on 12-Jan-2016
transcript
Bridging Learning to Behavior
Brian PagePersonal Twitter: @FinEdChat
Classroom Twitter: @TeenDollars
Nuts and Bolts of Personal Finance
Tools we use to manage our personal financesExample: Banking services
Concepts applicable to financial scenariosExample: Power of compound interest
Each are often found in standardsCouncil for Economic Education Jump$tartState Standards
“Nuts and Bolts” don’t turn themselves!
To bridge learning to behavior…
+ Tools
+ Concepts
+ Behavior Strategies
+ Relevant teen topics
Prepared
Build in Behavior Strategies
Don’t eat the marshmallow! http://www.ted.com/talks/
joachim_de_posada_says_don_t_eat_the_marshmallow_yet
If a student is impulsive, then what? It’s our job to introduce them to strategies to
overcome impulsive behavior
Nudges – America Saves / Budget Challenge Project
Control group ~ 500 students in a financial education class
Experimental group ~ 100 student in a financial education class plus nudging texts encouraging: Set a savings goal Open a savings account at a bank or credit union Contribute regularly
Ideally with a direct deposit
Original study 4 messages per week for two months
National study 3-4 messages per week for six weeks
Nudging Results
Do you have a particular savings goal?
Experimental* – Pre: 79% of total students said yesPost: 94% of total students said yes
Control – Pre: 64% of total students said yes.Post: 69% of total students said yes
*My students had already set savings goals prior to this survey
Nudging Results Continued
Do you have a savings account at a bank or credit union?
Experimental – Total students said yes: 20% growth
Control – Total students said yes: >1% growth
Nudging Results Continued
Do you make a deposit to your savings account at least monthly?
Experimental – Total students said yes: 50% growth
Control – Total students said yes: 11% growth
Tools to nudge your students
AmericaSaves.orgStrictly savings
Remind101Craft your own messages
Making choices “sticky”
Choices are “sticky” when they’re easiest In other words – “opt outs”
Saving as the defaultDirect deposit (split deposits) into savings, checking,
(and eventually retirement products) Start small, otherwise savings accounts turn into a
second checking account
Spending as the default Auto payments can be beneficial but…
Verizon “Edge Program” as an example
Decision fatigue
What is decision fatigue?
Overcoming decision fatigueBefore making a big decision…
Sleep on it Check your budget Talk to your spouse Check your balance on your phone* Use comparison shopping apps like “Red Laser”
Choice architecture
What is choice architecture?The way decisions can be influenced by how they’re
presented.
ExamplesBuffet “Opt-in” – Verizon Edge
“AA” for personal finance
Peer groupingPartner/group with someone who has strong will
power toward the stated goalPartner/group with someone with like goals
Fun ways to interactEncouraging texts Saving contestsConsequences, your friend takes a favorite item if
you impulsively spend
Study Finding: Teens are stressed about moneyThe “Why’s” are important, the “Why’s” are examples of how we can make lessons relevant
How to make lessons relevant…
Plan your lessons and design your tests looking at the financial world through the eyes of a teenager.
Study: Teens are stressed about money
The cost of college
Teen households are becoming poorerMedian income is down nearly 10% since 1995
Taxes are complicatedOnly 3 of every 100 teens have filled out an income
tax forms.
Teens use their own money on purchases but lack fundamental money management skills.
Addresses Stresses – The Cost of College
Relevant lessons aligning concepts from national standardsComparison shop colleges
Sticker price / Pricing strategies; Coupons (School scholarships, grants); different types of degrees; FAFSA
Consumer Financial Protection Bureau “Paying for College”
Principles of borrowing (student loans) Interest; the maximum to borrow; Does it improve your
future self
Return on the investment (college) Importance of good grades, networking, employable skills
Addressing Stresses: Eroding Incomes
Relevant lessons aligning concepts from national standardsStart them down the path of saving while they’re
young and it’s easier! America Saves Pledge and Texting Nudges Council for Economic Education Compound Interest
Calculator
Addressing Stresses: Taxes
Relevant lessons aligning concepts from national standardsMost students will qualify for tax refunds!Have them complete a W2, and a 1040EZ with a
simulated W4. Allow them to use their own W4 and bring in their
own 1040EZ during the exercise. IRS Understanding Taxes Free File
Addressing Stresses: Money Management Skills
Goal Setting
Have them establish their own short term S.M.A.R.T. savings goals. Common student goals: Saving for prom, a car, a phone, new
shoes (Jordan’s), spring break, college Reinforce the rewarding feeling of reaching a savings goal.
Saving isn’t just for emergencies, it’s for future spending too
They should experience early on the rewards of saving
Long term goal setting strategy Begin with student visualizing seeing himself/herself in the
mirror at an older age. Walk them through a “day in their lives”
Addressing Stresses: Money Management Skills
Budgeting
Priorities, values, and goals
Let’s call him Tim Spousal/roommate activity
Address the contradiction of behavior and knowledge Budgeting simulation:
Students saved last Test questions: Students knew
to save first and spend second Why? Scared that wouldn’t
have enough. Great teachable moment!
Addressing Stresses: Money Management Skills
Choosing a Financial Institution
Shop Around – It’s like dating! You never marry one, you spend your life dating.
Minimize, or if you can… avoid fees Minimum balance requirements Overdraft fees
Establish a savings account, a checking account, and a direct deposit into both
Take advantage of mobile banking options Mobile banking; text alerts
Overdraft protection – it’s like insurance you typically only have to pay for if you make a mistake
Addressing Stresses: Money Management Skills
Using Mobile Phones as Money Management Tools
Mobile phones for financial management and financial decision makingMobile banking
Text alerts Checking balances before big decisions
Comparison shopping apps like Red Laser
Teach them to use them safelyDon’t use public Wi-FiHow to set up a safe password
Il2g2c!
Addressing Stresses: Money Management Skills
Comparison Shopping
Comparison shop for an automobile
True Cost to Own Calculator Cost of the car Depreciation Gas Comparison shop insurance
What’s the opportunity cost of owning a car? Less freedom? Tied up future free time Tied up future income for college or an apartment
Bridging Learning to Behavior Further examples
Credit ReportsHave students check their credit report:
annualcreditreport.comHave students set annual phone reminders to check
their credit report at annualcreditreport.com
Follow key organizations like the FTC on social media
Comparison shop automobile insurance plans
Special Education Students
Three universally effective strategies…
Peer to peer learningConsider cognitive ability, relationships, and
behavior
Game-based learningOnGuardOnline.gov
Performance based learningComplete a 1040EZ, rather than question about a
1040EZ
Experiences matter most
Field Trip Examples “A Walk Down Wrong Street”Bank or Credit UnionAuto dealershipsGrocery store or mall
Test Questions
Design test questions to align with national standards
Include ways to assess students understanding of putting learning into action
Critical thinking; application of concepts
Design test questions through a teenagers eyes
Old Test Question
Select the term describing the process of setting income aside for future spending.
a. Credit Card
b. Spending
c. Saving
d. Investing
New Test Question
Select the best savings strategy for Michael, a teenager with a job and access to a direct deposit
a. Direct deposit income into a checking account
b. Direct deposit income into a savings account
c. Elect to receive checks rather than use a direct deposit service
d. Direct deposit a portion of income into a checking and a portion of income into savings
Old Test Question
Select the term defining the purchasing goods or services without considering needs, goals, or consequences.
a. Saving
b. Investing
c. Impulse Buying
d. Delayed Gratification
New Test Question
If making an impulsive choice, which financial decision to overspend would be more costly over time?
a. Flexible expense, such as overspending on a purse
b. Fixed expense, such as overspending on a car
c. Flexible expense, such as overspending on prom
d. Flexible expense, such as overspending on dinner
Classroom Twitter @TeenDollars
Stated Purpose: Help teens with the financial choices they have to make now
Hidden Purpose: Nudges, motivation
The 21st century classroom wall?
How I manage it. I only follow organizations and leaders dedicated to my
stated mission I do not follow students; but have hosted “student chats” “Financial tweets” are relevant to their current choices I insert humor, motivational posters, and student successes Tweets are timely
Example organizations I follow
#StudentChat
Example “Financial Tweet”
Example “Financial Tweet”
Example “Financial Tweet”
Example “Financial Tweet”
Example “Financial Tweet”
Example “Financial Tweet”
Example “Inserting Humor”
Example “Inserting Humor”
Example “Inserting Humor”
Teachers are difference makers!
Resources
Hundreds of catalogued Personal Finance Resources http://www.livebinders.com/play/play_or_edit?id=
384905
Catalogued resources specifically for soon to be or recent high school graduateshttp://www.livebinders.com/play/play?id=363714