1. Teaching Economics

2. 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.

3. 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.

4. 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. 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.

6. 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.

7. 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?

8. 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

9. 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

10. 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!

11. Make Smart Choices

12. Check this out!

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

14. 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.