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Students explore the basic functions and properties of money as they relate to individuals, financial institutions, and the economy. Students discover how sound money management, including setting goals and building a budget, can help them live within their means and make the most of the money they have. (By: Jeffry Valentín Mari, Ph.D.; Department of Economics / Center of Economics and Financial Education UPRM)

Objectives

Students will be able to:

  1. Explain how limited personal financial resources affect the choices people make.
  2. Identify what they gain and what they give up when they make choices.
  3. Make effective decisions as consumers, producers, savers, investors, and citizens.
  4. Understand what determines the real buying power of money to make better decisions as active citizens in the economy.
  5. Design a budget plan.

Educational standards

A. economics

Council for Economic Education and the National Association of Economics Educators and the Foundation for Teaching Economics , Voluntary National Content Standards in Economics (1997): (External Link)

  • Standard 1: Productive resources are limited. Therefore, people cannot have all the goods and services they want; as a result, they must choose some things and give up others.
  • Standard 2: Effective decision making requires comparing the additional costs of alternatives with the additional benefits. Most choices involve doing a little more or a little less of something; few choices are all-or-nothing decisions.
  • Standard 11: Money makes it easier to trade, borrow, save, invest, and compare the value of goods and services.

B. personal finance

JumpStart Coalition for Personal Financial Literacy, National Standards in Personal Finance (2007): (External Link)

  • Financial Responsibility and Decision Making: People make choices because they have limited financial resources and cannot have everything they want. A first step toward reaching financial goals is to identify needs and wants and rank them in order of importance. A decision-making process can help people make money decisions. Financial choices that people make have benefits, costs, and future consequences.
  • Planning and Money Management: A budget is a plan for spending and saving income. A budget identifies expected income and expenses, including saving, and serves as a guide to help people live within their income. A personal financial plan should include the following components: financial goals, a net worth statement, and income and expense record, an insurance plan, a saving and investing plan, and a budget.

Materials

  • Transparencies and/or power point visuals
  • Copies of the educational activities

Procedure

Step 1.- Use these or similar questions to start students thinking about the functions and properties of the money and how it relates to them (refer to Visual 1):

  • What’s the purpose of money? Imagine that for one day, money didn’t exist. What would be the impact on daily life?
  • Does the value of money stay constant? What are some factors that might affect the value of the dollar?
  • Has anyone here opened a savings account at a bank? What are the reasons you decided to do so?

Questions & Answers

Ayele, K., 2003. Introductory Economics, 3rd ed., Addis Ababa.
Widad Reply
can you send the book attached ?
Ariel
?
Ariel
What is economics
Widad Reply
the study of how humans make choices under conditions of scarcity
AI-Robot
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn Reply
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn
what is ecnomics
Jan Reply
this is the study of how the society manages it's scarce resources
Belonwu
what is macroeconomic
John Reply
macroeconomic is the branch of economics which studies actions, scale, activities and behaviour of the aggregate economy as a whole.
husaini
etc
husaini
difference between firm and industry
husaini Reply
what's the difference between a firm and an industry
Abdul
firm is the unit which transform inputs to output where as industry contain combination of firms with similar production 😅😅
Abdulraufu
Suppose the demand function that a firm faces shifted from Qd  120 3P to Qd  90  3P and the supply function has shifted from QS  20  2P to QS 10  2P . a) Find the effect of this change on price and quantity. b) Which of the changes in demand and supply is higher?
Toofiq Reply
explain standard reason why economic is a science
innocent Reply
factors influencing supply
Petrus Reply
what is economic.
Milan Reply
scares means__________________ends resources. unlimited
Jan
economics is a science that studies human behaviour as a relationship b/w ends and scares means which have alternative uses
Jan
calculate the profit maximizing for demand and supply
Zarshad Reply
Why qualify 28 supplies
Milan
what are explicit costs
Nomsa Reply
out-of-pocket costs for a firm, for example, payments for wages and salaries, rent, or materials
AI-Robot
concepts of supply in microeconomics
David Reply
economic overview notes
Amahle Reply
identify a demand and a supply curve
Salome Reply
i don't know
Parul
there's a difference
Aryan
Demand curve shows that how supply and others conditions affect on demand of a particular thing and what percent demand increase whith increase of supply of goods
Israr
Hi Sir please how do u calculate Cross elastic demand and income elastic demand?
Abari
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Source:  OpenStax, Civis project - uprm. OpenStax CNX. Nov 20, 2013 Download for free at http://cnx.org/content/col11359/1.4
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