Junior Achievement 2.4 “Planning Ahead”

Let’s review our vocabulary:

 Opportunity cost:

Let’s review our vocabulary:  Opportunity cost: The value of the next best alternative given up when a choice is made  Opportunity cost: The value of the next best alternative given up when a choice is made

“It takes as much energy to wish as it does to plan.” -Eleanor Roosevelt

Do you agree with this statement? Why or why not? Please write your response in the Daily Writing Prompt.

Why is planning an important part of making good decisions?

Today you will learn about the importance of planning when making consumer decisions.

What do you think of when you hear the word “income?”

Income is payment for the use of resources.

At BizTown, you will be earning an income for your work.

A salary is a type of income.

At BizTown you will have two breaks from work.

During your breaks, you will be able to purchase goods and services from the various businesses.

Product Availability

What does this graph show us?

What relationship can you see between the availability of goods and services, and the two break periods?

During the first break, there are more goods and services available. During the second break,there will be many students who will want to buy goods and that have become scarce.

What do you think of when you think of the word “scarce?”

Scarcity A situation where wants are greater than the resources available to satisfy those wants.

If a good or service can be sold for a price, then it is scarce.

Even lower priced goods can be scarce.

This means people can’t have everything they want.

Blizzard Moves in Tonight BLIZZARD WARNING: WINTER WEATHER TO SWEEP THE STATE! A winter storm warning is in effect for the tri- county area through the weekend according to the National Weather Service. The storm is expected to dump inches of snow, with accompanying winds in excess of 80 miles per hour. Temperatures are expected to be in the 20s and will drop to the single digits tonight. Power outages are expected, and many roads likely will be impassible. Local stores will be closing soon. BLIZZARD WARNING: WINTER WEATHER TO SWEEP THE STATE! A winter storm warning is in effect for the tri- county area through the weekend according to the National Weather Service. The storm is expected to dump inches of snow, with accompanying winds in excess of 80 miles per hour. Temperatures are expected to be in the 20s and will drop to the single digits tonight. Power outages are expected, and many roads likely will be impassible. Local stores will be closing soon.

As a group, decide which five supplies on the following list are the most important to have with the blizzard quickly approaching.

List of Supplies ___ Aspirin___ Electric heater ___ Batteries___ Flashlight ___ Blankets___ Matches ___ Bread___ Microwave pizzas ___ Candles___ Milk ___ Candy bars___ Soda ___ Coats___ Stamps ___ Coffee___ Water ___ Aspirin___ Electric heater ___ Batteries___ Flashlight ___ Blankets___ Matches ___ Bread___ Microwave pizzas ___ Candles___ Milk ___ Candy bars___ Soda ___ Coats___ Stamps ___ Coffee___ Water

Which item did you as a family group rank as most important?

Why would having this particular item be the most important supply for you to have with a blizzard on its way?

If your family only had enough money to purchase the item ranked #1 in your list of supplies, what would be the opportunity cost of doing so?

Which supply was most popular?

What is the likelihood that local stores might run out of this item if a blizzard actually occurred?

Planning ahead is an important way to avoid wanting something that is no longer available.

At BizTown, you may want to consider purchasing items during the first break.

Remember: People can’t have everything they want because of scarcity, so you must plan and make careful decisions.