Read each scenario below and find two “opportunity costs” for each situation. What was given up, financially, time spent doing something else, other lost experiences, etc.?

Students will explore the concepts of needs and wants and how they impact financial decisions. Discuss how budgeting decisions vary at different stages of life to reflect shifting personal goals. Students can work through some activites to discover reasons for budgeting, the difference between needs and wants and do their own self-evaluation for their financial choices.

Students will examine the principal of opportunity costs with some easy to understand examples and financial decisions. This resource includes a listening guide and assignment to accompany a "Two Cents" video Mod 32: Microeconomics Curriculum Indicator: Explain and simulate economic principles including supply and demand, scarcity, incentives, elasticity, opportunity cost, diminishing marginal utility and diminishing marginal productivity.

Outcome: FL10.5 Explain the principles of saving money and the importance of a savings mindset. Explore the concepts of needs and wants and how they impact financial decisions. Discuss how budgeting decisions vary at different stages of life to reflect shifting personal goals.

Answer the following questions in complete sentences regarding how microeconomic principles can really impact how individuals make financial decisions.

The Institute for Humane Studies has partnered with the authors of the textbook Common Sense Economics: What Everyone Should Know about Wealth Creation and Prosperity to help teach students why economic understanding is essential for life in today's society. With videos and quiz question corresponding to each element, this collection can be used as a study guide for "Part 1: Twelve Key Elements of Economics".