Teaching Economics

What is Economics? Economics is the study of how people choose to use resources. You make economic decisions every day, from buying coffee to checking your bank account.

Economic Literacy The goal of teaching economics is to help students develop economic literacy. Economic Literacy is the ability to identify, analyze and evaluate the consequences of economic decisions.

Economic Literacy is… Knowledge of the market economy Knowledge of the national economy Knowledge of the global economy Ability to apply knowledge and reasoning to make decisions about their economic lives.

5 Stages of Economic Reasoning Identify the question or problem. List the alternatives. Identify the pros and cons of each alternative. Choose the best alternative. Reevaluate the consequences of the decision.

Here’s an example – The Little Red Hen 1. Henny Penny wants to play with her friends but she has to make bread to feed her chicks. 2. She can either make her bread or play with her friends. 3. Pros: feed her chicks, pride in her work Cons: not as fun, no time to play Pros: fun Cons: her chicks will be hungry 4. Henny Penny chooses to make her bread. 5. She is proud of herself and her chicks have food. Her friends wish they helped her make the bread so they could eat it too.

Now you try! What is the problem? What are the alternatives? What are pros and cons of each alternative? What is the best alternative? Why is this a good economic decision?

6 Economic Principles People choose Choice involves cost People respond to incentives in predicable ways People create economic systems that influence individual choices People gain when they trade voluntarily. People’s choices have consequences

4 Standards of Financial Literacy 1. Income – sources and factors that affect income 2. Money Management – budgeting and decision making 3. Spending and Credit – comparison shopping and payment methods 4. Saving and Investing – rational for saving and risk

Strategies for Teaching Economics Costs and Benefits Pets, what the cost and the benefits (the 5 economic reasoning steps) Production and Exchange Using money, how to spend it and on what? Literature Picture Books Case Studies Price changes ex. gas, milk Field Trips Skits/Reenactment Simulations- even video games!

Make Smart Choices http://www.econedlink.org/interactives/multiple-choice/index.php?lid=461&gid=1

Check this out! http://ecedweb.unomaha.edu/K-12/K-5concepts.cfm

Question to consider How can we teach this controversial topic without offending our students and/or their families?

Why teach economics? Real world context- they use it every day. Cross-curricular- it can be easily integrated into every subject. It will prepare them for their future.