Bridging Learning to Behavior Brian Page Personal Twitter: @FinEdChat Classroom Twitter: @TeenDollars.

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Bridging Learning to Behavior

Bridging Learning to BehaviorBrian PagePersonal Twitter: @FinEdChatClassroom Twitter: @TeenDollarsNuts and Bolts of Personal FinanceTools we use to manage our personal financesExample: Banking servicesConcepts applicable to financial scenariosExample: Power of compound interestEach are often found in standardsCouncil for Economic EducationJump$tartState StandardsNuts and Bolts dont turn themselves!To bridge learning to behavior + Tools + Concepts + Behavior Strategies + Relevant teen topics PreparedBuild in Behavior StrategiesDont eat the marshmallow! http://www.ted.com/talks/joachim_de_posada_says_don_t_eat_the_marshmallow_yetIf a student is impulsive, then what? Its our job to introduce them to strategies to overcome impulsive behaviorNudges America Saves / Budget Challenge ProjectControl group ~ 500 students in a financial education classExperimental group ~ 100 student in a financial education class plus nudging texts encouraging:Set a savings goalOpen a savings account at a bank or credit unionContribute regularlyIdeally with a direct depositOriginal study4 messages per week for two monthsNational study3-4 messages per week for six weeksNudging ResultsDo you have a particular savings goal?Experimental* Pre: 79% of total students said yesPost: 94% of total students said yesControl Pre: 64% of total students said yes.Post: 69% of total students said yes

*My students had already set savings goals prior to this surveyNudging Results ContinuedDo you have a savings account at a bank or credit union?Experimental Total students said yes: 20% growthControl Total students said yes: >1% growthNudging Results ContinuedDo you make a deposit to your savings account at least monthly?Experimental Total students said yes: 50% growthControl Total students said yes: 11% growth

Tools to nudge your studentsAmericaSaves.orgStrictly savingsRemind101Craft your own messagesMaking choices stickyChoices are sticky when theyre easiestIn other words opt outsSaving as the defaultDirect deposit (split deposits) into savings, checking, (and eventually retirement products)Start small, otherwise savings accounts turn into a second checking accountSpending as the default Auto payments can be beneficial butVerizon Edge Program as an exampleDecision fatigueWhat is decision fatigue?Overcoming decision fatigueBefore making a big decisionSleep on it Check your budgetTalk to your spouseCheck your balance on your phone*Use comparison shopping apps like Red LaserChoice architecture What is choice architecture?The way decisions can be influenced by how theyre presented.ExamplesBuffetOpt-in Verizon Edge

AA for personal financePeer groupingPartner/group with someone who has strong will power toward the stated goalPartner/group with someone with like goalsFun ways to interactEncouraging texts Saving contestsConsequences, your friend takes a favorite item if you impulsively spendStudy Finding: Teens are stressed about moneyThe Whys are important, the Whys are examples of how we can make lessons relevantHow 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 moneyThe cost of collegeTeen households are becoming poorerMedian income is down nearly 10% since 1995Taxes 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 CollegeRelevant lessons aligning concepts from national standardsComparison shop collegesSticker price / Pricing strategies; Coupons (School scholarships, grants); different types of degrees; FAFSAConsumer Financial Protection Bureau Paying for CollegePrinciples of borrowing (student loans)Interest; the maximum to borrow; Does it improve your future selfReturn on the investment (college)Importance of good grades, networking, employable skillsAddressing Stresses: Eroding IncomesRelevant lessons aligning concepts from national standardsStart them down the path of saving while theyre young and its 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 TaxesFree File Addressing Stresses: Money Management Skills Goal SettingHave 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 (Jordans), spring break, collegeReinforce the rewarding feeling of reaching a savings goal. Saving isnt just for emergencies, its for future spending tooThey should experience early on the rewards of savingLong term goal setting strategyBegin with student visualizing seeing himself/herself in the mirror at an older age. Walk them through a day in their livesAddressing Stresses: Money Management Skills BudgetingPriorities, values, and goalsLets call him TimSpousal/roommate activityAddress the contradiction of behavior and knowledgeBudgeting simulation: Students saved lastTest questions: Students knew to save first and spend secondWhy? Scared that wouldnt have enough. Great teachable moment!

Addressing Stresses: Money Management Skills Choosing a Financial InstitutionShop Around Its like dating!You never marry one, you spend your life dating. Minimize, or if you can avoid feesMinimum balance requirementsOverdraft feesEstablish a savings account, a checking account, and a direct deposit into bothTake advantage of mobile banking optionsMobile banking; text alertsOverdraft protection its like insurance you typically only have to pay for if you make a mistakeAddressing Stresses: Money Management Skills Using Mobile Phones as Money Management ToolsMobile phones for financial management and financial decision makingMobile bankingText alertsChecking balances before big decisionsComparison shopping apps like Red LaserTeach them to use them safelyDont use public Wi-FiHow to set up a safe passwordIl2g2c!Addressing Stresses: Money Management Skills Comparison ShoppingComparison shop for an automobileTrue Cost to Own CalculatorCost of the carDepreciationGasComparison shop insuranceWhats the opportunity cost of owning a car?Less freedom?Tied up future free timeTied up future income for college or an apartmentBridging Learning to Behavior Further examplesCredit ReportsHave students check their credit report: annualcreditreport.comHave students set annual phone reminders to check their credit report at annualcreditreport.comFollow key organizations like the FTC on social mediaComparison shop automobile insurance plansSpecial Education StudentsThree universally effective strategiesPeer to peer learningConsider cognitive ability, relationships, and behaviorGame-based learningOnGuardOnline.govPerformance based learningComplete a 1040EZ, rather than question about a 1040EZ

Experiences matter mostField Trip ExamplesA Walk Down Wrong StreetBank or Credit UnionAuto dealershipsGrocery store or mall Test QuestionsDesign test questions to align with national standardsInclude ways to assess students understanding of putting learning into actionCritical thinking; application of conceptsDesign test questions through a teenagers eyes

Old Test QuestionSelect the term describing the process of setting income aside for future spending. a. Credit Cardb. Spendingc. Savingd. Investing

New Test QuestionSelect the best savings strategy for Michael, a teenager with a job and access to a direct deposita. Direct deposit income into a checking accountb. Direct deposit income into a savings accountc. Elect to receive checks rather than use a direct deposit serviced. Direct deposit a portion of income into a checking and a portion of income into savings

Old Test QuestionSelect the term defining the purchasing goods or services without considering needs, goals, or consequences.a. Savingb. Investingc. Impulse Buyingd. Delayed Gratification

New Test QuestionIf making an impulsive choice, which financial decision to overspend would be more costly over time?a. Flexible expense, such as overspending on a purseb. Fixed expense, such as overspending on a carc. Flexible expense, such as overspending on promd. Flexible expense, such as overspending on dinner

Classroom Twitter @TeenDollarsStated Purpose: Help teens with the financial choices they have to make nowHidden Purpose: Nudges, motivationThe 21st century classroom wall?How I manage it.I only follow organizations and leaders dedicated to my stated missionI do not follow students; but have hosted student chatsFinancial tweets are relevant to their current choices I insert humor, motivational posters, and student successesTweets 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!

ResourcesHundreds of catalogued Personal Finance Resources http://www.livebinders.com/play/play_or_edit?id=384905Catalogued resources specifically for soon to be or recent high school graduateshttp://www.livebinders.com/play/play?id=363714