The Mystery of Two Families. A Mystery of Two Families The Robinsons and the Meltons are two families that earn the same income, live in the same neighborhood,

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Presentation transcript:

The Mystery of Two Families

A Mystery of Two Families The Robinsons and the Meltons are two families that earn the same income, live in the same neighborhood, are of the same age, and have two children each. Yet the Robinsons are six times wealthier than the Meltons. Why is this?

The Robinsons spend time managing their money but not worrying about it. Although they never inherited a dime, Mr. and Mrs. Robinson feel they can easily send their children to college. The $250,000 they have saved is also a good start for their retirement. Both are working to improve their future income. Mr. Robinson is completing a college degree at night, and Mrs. Robinson has been taking weekend seminars offered at no cost by her employer. Both are hoping for promotions. A Mystery of Two Families

The Meltons are very worried about money. Their credit card balance keeps increasing every month. They have neither the time nor money to improve their education. Although they could sell their house for more than they owe on the mortgage, they have no savings. They hope their children will get scholarships to pay for college. A Mystery of Two Families

To solve the mystery of the two families, let’s learn some basic points of economic reasoning that will help you make better choices. A Mystery of Two Families

What was each families opportunity cost MeltonsRobinsons

What incentive would have improved their decisions MeltonsRobinsons

How did they gain from voluntary trade? Meltons Robinsons

What are their future consequences MeltonsRobinsons

What things are scarce for each family MeltonsRobinsons

What resources do you identify being used in the story MeltonsRobinsons

What influences your money attitudes? Our attitudes and belief systems are influenced by our peers, family, society, and religious upbringing. Understanding these beliefs will help you to gain a greater understanding of your spending patterns.

What messages did you receive from your family? –Regarding saving? –Giving? –Debt? What beliefs and attitudes did you develop as a result?

What money messages did you receive from your peers? What beliefs and attitudes did you develop as a result?

What money messages did you receive from society? What beliefs and attitudes did you develop as a result?

What money messages did you receive from your religious upbringing? What beliefs and attitudes did you develop as a result?