Six Basic Ways to Teach Economics/Entrepreneurship In Your Classroom 1. Teaching Activities on Specific Concepts 2. Classroom Mini-Economies (Classroom Currency) 3. Classroom Businesses (Using Real Money) 4. Literature-Based Instruction 5. Using the Stock Market Game TM 6. Everyday Classroom Situations

What is a Mini-Economy? And Why Should I Use One?

The mini-economy is a form of economics instruction in which students participate in a classroom economy in order to simulate real world economic activity.

Five Basic Elements of a Mini-Economy ECONOMICS INSTRUCTION ECONOMICS INSTRUCTION CLASSROOM MANAGEMENT APPLICATION OF BASIC SKILLS MONEY MANAGEMENT ENTREPRENEURSHIP

Why Use a Mini-Economy? Reason 1: The Mini-Economy Helps Teach Economic Concepts Reason 2: The Mini-Economy Integrates Easily into the Rest of the Curriculum Reason 3: The Mini-Economy Improves Student Learning Real as opposed to vicarious Active rather than passive Actual decision-making and bearing the consequences

Reason 4: The Mini-Economy Models Our Economic System Reason 5: The Mini-Economy Is a Tremendous Motivator Reason 6: The Mini-Economy Helps Students Learn How to Manage Money Reason 7: The Mini-Economy Develops Entrepreneurial Competency

Figure 1-2 Types of Mini-Economies COMPLEX Kourilsky I II ● I II ● TEACHER STUDENT DIRECTED DIRECTED III IV III IV● New Mini-Economy New Mini-Economy SIMPLE

Three Important Things to Remember About Operating a Mini-Economy 1. EXPAND MINI-ECONOMY ACTIVITIES GRADUALLY Don’t Try to Do Everything at Once Don’t Try to Do Everything at Once 2. GIVE STUDENTS RESPONSIBILITY FOR HANDLING MANY MINI-ECONOMY DETAILS Don’t Do What Your Students Can Do Don’t Do What Your Students Can Do 3. USE THE MINI-ECONOMY TO TEACH BASIC ECONOMIC CONCEPTS Don’t Use the Mini-Economy Primarily for Classroom Management Don’t Use the Mini-Economy Primarily for Classroom Management

“My son is one of the students with special needs. His disability – autism – makes it very difficult for him to understand abstract concepts….Through the use of these many different approaches, Mrs. Salsman has been able to achieve a real breakthrough with my son and teach him so much about the value of money, working, getting paid, spending and saving. For a child with his disability to have made so much progress in one school year could easily be considered a miracle.” “My son is one of the students with special needs. His disability – autism – makes it very difficult for him to understand abstract concepts….Through the use of these many different approaches, Mrs. Salsman has been able to achieve a real breakthrough with my son and teach him so much about the value of money, working, getting paid, spending and saving. For a child with his disability to have made so much progress in one school year could easily be considered a miracle.”

Five Steps for Starting a Mini-Economy Step 1: Design the Classroom Money

Step 2: Decide How Students Will Decide How Students Will Earn Money Classroom Jobs Payment for Desired Behavior Mini-Economy Businesses

Classroom Jobs

Payment for Desired Behavior

Mini-Economy Businesses

Step 3: Determine What Items and Privileges the Money Will Buy Determine What Items and Privileges the Money Will Buy

Step 4: Determine How to Distribute Items and Privileges Determine How to Distribute Items and Privileges Classroom Store Auction

Step 5: Do It! Do It!

Expanding Your Mini-Economy

Life Necessities One simple, yet powerful way to add realism to a mini-economy is to require students to pay for various “necessities of life.” One simple, yet powerful way to add realism to a mini-economy is to require students to pay for various “necessities of life.”

Banks A bank is a natural for the mini-economy. A bank is a natural for the mini-economy. See the Mini-Economy Banking Program at

Insurance Companies Insurance is one of the most popular aspects of the mini-economy. Insurance is one of the most popular aspects of the mini-economy.

Government and Taxes Government and taxes are aspects of the mini-economy that are easy to implement.

Real Estate One of the easiest ways to add realism and excitement into your mini-economy is by introducing the concepts of real estate and private contracts. One of the easiest ways to add realism and excitement into your mini-economy is by introducing the concepts of real estate and private contracts.

Businesses Many teachers report that mini-economy businesses are the most rewarding and instructive aspect of their mini-economies. Many teachers report that mini-economy businesses are the most rewarding and instructive aspect of their mini-economies.

Investments Adding investments to the mini-economy creates much interest and enthusiasm, and provide an excellent opportunity to use many basic math skills. Adding investments to the mini-economy creates much interest and enthusiasm, and provide an excellent opportunity to use many basic math skills.

Exchange Rates If there is another mini-economy in your school, it is easy to introduce the concept of exchange rates.

Teaching Economics in the Mini-Economy Classroom The mini-economy classroom provides a perfect setting for teaching students the basic economic concepts that are part of the social studies curriculum.

The Actual Classroom Environment Economics is an integral part of the world around us and permeates virtually all facets of life, including the elementary and middle school classroom. Use Everyday Classroom Situations Use Economics Vocabulary Whenever Possible Sample: The school secretary’s job is important to our school. The school secretary provides a valuable service to our school.

Existing Curriculum Economic concepts and themes are found throughout the curriculum. Social Studies Math Language Arts

Economic Education Materials There are many excellent economic education materials available to teachers. Play Dough Economics economics.html KidsEcon Posters Focus: Economics Grade

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