My Two Cents on Two Cents

After listening to the NGPF Podcast with the creators (and stars) of the PBS Series “Two Cents,” I decided to ‘dig deeper’ and I binge watched every episode available to date!  I really like them!!! I have been trying to figure out exactly what it is about the series that I found so engaging. Here are my top (4) reasons:

1) The videos are entertaining! They have just the right amount of animation, humor, and music.

2) They are well-researched! You feel confident using these for educational purposes.  (PBS sets a high bar).

3) The content is broken into digestible and actionably chunks.  

4) There is an underlying acknowledgement of behavioral finance and explanations given as to how our mind often undermines our best intentions (no judgement!)

All of these factors make these videos a great resource for those teaching teenagers and young adults.  While not all of the topics may be relevant for all audiences, there are lots of lessons to be gleaned from the podcasts regardless of age.

Julia Lorenz-and Philip Olson explain that the original target audience for these podcasts was millennials.  To me, the most intriguing fact divulged in Tim’s interview with them is that the largest audience segment seems to be women between 35 and 45.  What, beyond the characteristics already outlined, might explain this? I would propose that this may be a demographic group caught in a bit of a gap…..growing up in an age where financial education was totally non-existent (unlike younger millennials and the Gen Z kids we are teaching now), and probably stuck in more traditional familial roles where the men (fathers and partners) may have been making all of the financial decisions.  By watching and learning from these podcasts, women can bring themselves up to speed to confidently make better financial decisions on their own, and get involved in the decisions if part of a couple.

Two Cents in the Classroom

If you are thinking about trying one of the podcasts out in your classroom, I have pulled together some suggested questions to follow up on the viewing of a few of the episodes currently available.  Relevant NextGen activities on the topics are also listed below the questions.

The Two Cents FB page provides a medium for you to give Julia and Philip feedback.  They are looking to expand to other audiences (like maybe schools), and are open to suggested topics from their audience.  

How Cars Can Keep You Poor

1) Why do cars pose a financial “Triple Threat”? (What are the three elements of cost that come with a car?)

2) Describe depreciation?  What role does depreciation plan in the suggestion you buy a 5-year old car?

3) What is a good financial test for whether or not you can afford a car payment?

Related NextGen content:  Bonus Lesson: Purchasing a Used Car, and Project on buying a used car.

Fighting the Financial Pitfalls of Supermarkets

1) Why do supermarkets play music?

2) How does the layout of the store encourage you to spend more (Where is the milk? Where are the most expensive items?)

3) Give some examples of how you can use unit price to make wiser choices.

4) Name three strategies to help you stay within your grocery budget.

Related NextGen content: Lesson: Planning a Food Budget and Research Activity on creating a monthly food budget.

Hacking Your Brain to Get Out of Debt

1) Describe what the Olsons mean by “Minding and widening the gap.”

2) Describe the “Avalanche Method” of paying down debt. What are the benefits of using this method?

3) Describe the “Snowball Method” of paying down debt. What are the benefits of using this method?

Related NextGen content:  Lesson: Managing Debt, and Case Study “Get Me Out Of My Debt Dungeon”.

How do Your Tax Dollars Get Spent?

1) FICA taxes are payroll taxes (come out of everyone’s paychecks).  What do these funds pay for?

2) What are the next three largest buckets of government spending? Do you find any of these surprising?

3) Did the United States always have an income tax?  Have tax rates been pretty constant over time?

Related NextGen content:  Lesson: Basic Taxes and Activity on calculating how much to pay in taxes.

Five Ways People Are Dumb About Money

1) Explain the “endowment effect.” (think Pokemon card).

2) What is the “sunk cost fallacy” and how do stores use it to their advantage?

3) In your own words, how would you describe “transactional utility?”

4) Why are people more likely to spend lottery winnings, tax refunds, or inheritances on frivolous things?

Related NGPF Content: NGPF Podcast with Meir Statman (professor of behavioral finance, and a PBS Newshour Interview with Richard Thaler (behavioral economist).

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