Take-Aways From a Back-to-School Virtual Conference

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.