The focus of this standard is on buying goods and services. You can project the .pdf of Piggy Bank Primer: Saving and Budgeting or order free class sets from the Federal Reserve. During the lesson, you can do a shared reading with the students.
Learning Background Knowledge of Standards 1) Project Activity 1 (pp. 4-6) Piggy Bank Primer: Saving and Budgeting on a screen (or have students read in their individual copies). Students discuss and write how we make choices about the goods and services we want. 2) Use Activity 2 (7-11) Piggy Bank Primer: Saving and Budgeting. Students discuss and write about why they can't have everything they want and how they can prioritize their wants (refer to the activity on pages 8-9 where they have to decide which goods and services they can buy now and which ones they must save to buy. 3) For Opportunity Cost, project Activity 3 (pp. 12-15) Piggy Bank Primer: Saving and Budgeting. Students should understand that opportunity cost is the value of the next best thing they gave up when they made a choice. 4) For Costs and Benefits, project Activity 4 (16-17) Piggy Bank Primer: Saving and Budgeting. Students should understand how costs are something a decision-maker gives up and benefits are something they gain. On page 17 they make an informed decision by comparing costs and benefits of spending alternatives. |
BUYING GOODS AND SERVICES
SS.4.FL.2.1 Explain that economic wants are desires that can be satisfied by consuming a good, a service, or a leisure activity. SS.4.FL.2.2 Explain that people make choices about what goods and services they buy because they can't have everything they want. This requires individuals to prioritize their wants. SS.4.FL.2.3 Identify some of the ways that people spend a portion of their income on goods and services in order to increase their personal satisfaction or happiness. SS.4.FL.2.4 Discuss that whenever people buy something, they incur an opportunity cost. Opportunity cost is the value of the next best alternative that is given up when a person makes a choice. SS.4.FL.2.5 Explain that costs are things that a decision maker gives up; benefits are things that a decision maker gains. Make an informed decision by comparing the costs and benefits of spending alternatives. SS.4.FL.2.6 Predict how peoples spending choices are influenced by prices as well as many other factors, including advertising, the spending choices of others, and peer pressure. SS.4.FL.2.7 Planning for spending can help people make informed choices. Develop a budget plan for spending, saving, and managing income. |
Decision-omics Activity for Spending Decisions
DECISIONOMICS ACTIVITY: How do you make good spending decisions? To apply the financial literacy concepts learned: wants, goods, services, choices, opportunity cost, costs, benefitsead a children's picture book such as: Alexander Who Used to be Rich Last Sunday, Those Shoes, or Something Good. Ask the following standards-related questions about spending decisions:
Making the Decision: Establishing a budget requires the character to make certain decisions about their money and spending. Read page 6 in Great Minds Think: A Kid's Guide to Money to learn about budgets and then complete the budget worksheet on page 7. Help the character plan a budget.
Assessing Outcomes: Budgets can always change. For example, the character might do some chores and make some money. These questions can lead to other inquiry and decision-making activities:
Additional Lesson Plans:
Alexander Who Used to Be Rich Last Sunday
EconEdLink: To Market To Market - students learn how to become good consumers and producers by buying and selling things in a classroom-created market.
- What did the character want? Did they want a good or service? How could this want be satisfied by consuming the good or service?
- The character had to make a choice because people can't have everything they want. Discuss the costs and benefits of each alternative.
- What was the opportunity cost of the character's decision?
- In the story, what influenced the character's choices (peer pressure, advertising, the spending of others, etc.)?
Making the Decision: Establishing a budget requires the character to make certain decisions about their money and spending. Read page 6 in Great Minds Think: A Kid's Guide to Money to learn about budgets and then complete the budget worksheet on page 7. Help the character plan a budget.
Assessing Outcomes: Budgets can always change. For example, the character might do some chores and make some money. These questions can lead to other inquiry and decision-making activities:
- What if you had to choose a present for a friend or family member? How would you buy or make the present?
- You receive some money as a gift. What will you do with the money? What is the opportunity cost of your choice?
Additional Lesson Plans:
Alexander Who Used to Be Rich Last Sunday
EconEdLink: To Market To Market - students learn how to become good consumers and producers by buying and selling things in a classroom-created market.