Each year in August, Next Gen Personal Finance holds an all-day Back-to-School Virtual Conference for financial educators. I recently attended part of this program to learn about topics related to my work for clients. I firmly believe that, when you are well versed on current events, you enhance your credibility with clients and students.
Below are six of my content take-aways:
Generative
AI Prompts- Users need to “poke and prod” prompts for generative
AI programs (e.g., ChatGPT, Bing, and Gemini) to get what they want. The more detail,
the better. For example “Explain AI to a 10-year old in 60 words or
less” versus “Explain AI.” Be very specific. Examples: “Write your response in
narrative form instead of a bulleted list” and “The tone should be casual and
exciting.” Use AI output as a tool but make the final product your own.
Frictionless
Spending- Due to increased use of financial technology
(fintech) tools, the processes of spending and borrowing money have become much
more seamless and hassle-free. While this is good from a convenience standpoint
(i.e., quick transactions with minimal steps and obstacles), fintech tools can
also enable overspending and overborrowing.
Dark
Patterns- These are deceptive user interfaces on websites that
trick people into doing things that they didn’t plan to do such as signing up
for recurring payments, buying something, or sharing personal information.
Three common places where dark patterns are used are online shopping, gaming
apps (e.g., paying money to get to the next level of a game), and social media.
For example, ads that pop up for items that you were just searching for online.
Confirm
Shaming- This dark pattern method words the option to decline
an offer in such a way that website visitors feel ashamed to proceed. Example:
“So you really don’t want to save money?” Other dark patterns include making it
very difficult to cancel a service or subscription that was so easy to sign up
for (e.g., requiring a phone call) and “bait and switch” dark patterns that try
to get consumers to upgrade when a low cost product or service is
“unavailable.”
Inflation
Rate- Good news! The U.S. inflation rate fell below 3% for
the first time since 2021. Specifically, the consumer price index
rose 2.9% from July 2023 to July 2024 according to the U.S. Bureau of Labor
Statistics. While the increase in prices for goods and services has slowed
considerably from mid-2022, we are not experiencing deflation (i.e., a
sustained decrease in prices). Therefore, Americans cannot expect prices to go
back to where they were in 2019.
Vehicle
Purchases- The average price of a new vehicle is slightly under
$50,000 and 96-month (8-year) car loans are becoming increasingly available. A
longer loan term (e.g., 7 or 8 years vs. 4 or 5 years) reduces monthly vehicle
loan payments but increases the total interest paid. According to a 2024 J.D.
Power study,
Toyota is the most reliable mass market brand followed by Buick (ranked second)
and Chevrolet and Mini (both tied for third).
This post provides
general personal finance or consumer decision-making information and does not
address all the variables that apply to an individual’s unique situation. It does
not endorse specific products or services and should not be construed as legal
or financial advice. If professional assistance is required, the services of a
competent professional should be sought.
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