Leading behavioral finance researcher Prof. Terrance “Terry” Odean will be a panelist (with Prof. Meir Statman) at NGPF’s Inaugural Summit this March. Prof. Odean has created a series of money management videos on YouTube to help people make challenging financial decisions. Here are four that we thought you would enjoy that focus on car buying, investing, happiness and insurance. Enjoy!

Should You Buy or Lease a Car? (4:43)

• Odean offers his viewers great insight on what leasing a car entails, and details how buying a car is, in fact, more beneficial for the average American.
• If you have a car, how did you acquire it? Did you inherit, buy, or lease it?
• In what instance would someone look to lease a car instead of buy?
• Which option is more economical over time?
• NGPF Resource: Check out our lesson on Auto Loans & Leases 

Investing in Risky Markets (5:18)

• This seems very fitting, seeing as the market took quite a plunge lately. Odean explains how investing in the market is different depending on how and when you invest.
• Why does it always pay off to play the “long game” when it comes to investing in a risky market?
• Can anyone really predict what the market will do?
• “The greater the risk, the greater the return.” Do you believe this statement is true? Why or why not?
• Aside from stocks and bonds, what are some other investing options?
• NGPF Resource: Here are a few favorites in the investing unit:  
  • Investing: Intro to the Stock Market, which includes our popular Project: Joining the Market (here are the slides)
  • This interactive allows students to see if they "Think You Can Beat the Market?"

Spending for Happiness (5:51)

• You can’t buy happiness, but you budget for things that make you happier. Odean explains how people can fund their happiness, as well as advises how to best spend your hard earned dollars.
• Why is it important to budget your money so you can treat yourself every now and again?
• Do you already do this? If so, what do you spend your money on?
• What are some non-materials things you could suggest others to spend their money on to make themselves happy?
• Where do you draw the line between a want versus a need? Is that line influenced at all by cost?
• NGPF Resource:  Activity in which students Compare their Needs & Wants

How Does Insurance Work? (13:46)

• Odean describes why different types of insurance are important for all aspects of your life. This video would complement a personal anecdote about how you have dealt with insurance in the past so students would be able to understand the importance of it.
• Why do you think insurance companies assess people before they take them on as a client? Do you think this is a fair process?
• Why do different kinds of insurance exist?
• Did you know how insurance worked before watching this video?
• NGPF Resource: Activity that allows students to Compare Personal Risk Factors so they can see how insurance companies assess people for eligibility

About the Author

Danielle Bautista

Danielle is a native of Southern California and a recent graduate from the University of Maine, where she braved the frigid winters—a feat in and of itself—and earned her Bachelor's degree in International Affairs. She has a passion for working with non-profit organizations and serving populations in underprivileged communities. When Danielle isn't writing NGPF blog posts, spearheading various outreach projects, or managing contests and flash surveys, you can find her doing some sort of outdoor activity, learning a new hobby, or cracking what she thinks are witty puns!