Smart Consumers, Smart Choices
In this lesson, students learn what it means to be a smart consumer by engaging in a level-headed analysis of budget, opportunity costs and self-regulation. Students compare prices within a service field, and weigh the choices of spending money on that item, saving that money, or spending the money on something else. This exercise is a good opportunity to present basic economic concepts.
Three 45-minute class periods
Budgeting; opportunity costs; cost-benefit analysis; self-regulation; savings; supply and demand; cost comparisons
Students will be able to:
- Perform an effective economic analysis
- Define and analyze opportunity costs
- Perform a cost-benefit analysis
- Understand the importance of self-regulation
- Perform a financial analysis using compound interest
McREL Economics Level 4, Standard 3, Benchmark 3
Understands that changes in supply or demand cause relative prices to change; in turn, buyers and sellers adjust their purchase and sales decisions.
McREL Self Regulation Level 4, Standard 1, Benchmark 2
http://www.mcrel.org/compendium/search.asp?Action=Search &SubjectName=23&GradeOption=12&Keyword=&KeywordOption= AND&Vocabulary=&VocabularyOption=AND&Topic= &TopicOption=AND&Submit1=Submit+Search
Creates an action plan to achieve long-term goals that includes strategic, practical steps and that accounts for the resources needed to achieve these goals.
This lesson was prepared by: Melissa Donohue