Economic Concepts in Education
The Old battle- Spending vs savings
Dr. Fred A. Carr, Director,
Center for Economic Education
The University of Akron
Saving Basic Concepts Scarcity Consumer Education
Joyce Sutherland
5790 Navarre Rd. S.W.
Grades 9-10 Canton, Ohio - 44706
The Old Battle -Spending v Savings
This paper is designed to be a life awareness activity
after a year of teaching counting and money to E.M.R.
students ages 9 -10. Many of them are never given real
money except in my classroom during the March unit on
identifying and counting change. Now it is May and time to
review the math skills arid introduce some economic
principles.
These are the objectives:
To add money units on a daily basis.
To learn, concepts of scarcity, opportunity costs, and
Cost- benefit analysis.
To be aware of present consumption vs capital accumulation.
To allow students to make decisions then evaluate the
decisions,
and feel comfortable with them.
This paper covers four weeks. The first week introduces
scarcity. The next three weeks develop opportunity costs,
decision making, and counting money review. By the fourth
week the students should feel comfortable with their
decisions. They should understand that saving money can he more satisfying in the long run than spending immediately.
Week One, Day One
Time Social Studies
Objectives To introduces scarcity.
Materials Blackboard and Chalk, Bulletin Board Letters "There's
A Scarcity" , Scarcity Concentration Game Level1,
Match Game, Level 11 Procedural. Ask the students to name things they would like to have.
Accept all answers, enthusiastically and write them on
the board. Someone will probably say after looking at
the list "We want everything , " or words to that
effect.
If not the teacher will say it. Then ask why we can't
have everything. There is a scarcity of money to buy.
There is a scarcity of Materials to make them with.
There is a scarcity of time to use them all. Spend a lot of
time defining the word scarcity.
2. Decide to make a Bulletin board “Theres a Scarcity". Each child
will bring in picture showing a scarcity.(four pencils -three
children)
3. Introduce the scarcity concentration games. Scarcity level 1, match Game Level 2.
Week One Day two
Time Language Arts
Objectives To drill on scarcity.
To review counting money
To listen to a story about saving money
To make a piggy bank.
The jars will be placed on a shelf, behind the teacher's
desk. The shelf will have a named taped to each spot so the
children will always put their banks in the same spots.
The teacher explains all these stations in the first 1/2
hour of 1anguage arts • The children follow a checklist
telling them what day to do which stations. It is good to
put compatible children to be on these at the same time. By
the end of the week all children should have done each
station. This will prepare them for next week.
Week One Day Three
Time Social Studies
Objectives To reinforce scarcity
Materials Overhead projector and Sherwood Woods
Argument,Suirrel and Blue Jay pictures.
Procedure Display the Sherwood Woods Agrument on the
overhead. Read and discuss. Then let the children take
turns being the bluebird and the squirrel, ho1ding the
picture in their hands, the children are finished role-
playing take a vote to decide how the class fee1s is
the best way to solve the scarcity dilemma.
Week One Day Four
Time Social Studies
Objectives To reinforce coin recognition
To promote the ideas of saving money
Materials Ditto 11A and 11B, pencils, scissors,
Crayons Procedure Begin by asking the class how many
Get allowances.
Materials Scarcity Games level 1 and 2,Language Master,
Language master set.. 2404 Using Money, Headset, Tape
Recorder, headset, tape on which the teacher has taped
“The Day the gang got Rich” by William Kotzwinkle. Baby
food jars with lids, patchwork pieces cut in 2"
squares, glue watered down to paint on jars, laquar
spray, hammer and screwdriver to rut in slit-tops for
banks by teacher, shelf behind the teacher's desks,
Procedure this room will he arranged with learning
Stations around the room that the children will use
for the rest of the reek. Station I will be the
scarcity games. Remind the chi1dren who are to play
level 1, and those who are to play level 2. Station 2
will be the Language Master with a head set. The set
2404 “Using Money” will be used with the Language
Master. This is an auditory-and visual reinforcement of
coin values, coin equivalents, and coin totals. Station
4 will be a tape recorder, headset, a tape of the
teacher reading "The Day the Gang Got Rich by William
Kotzwinkle.
The students may listen while following along in the
book.
Station 5 will be making a piggy bank. There should be
A baby food jar for each child. The child on his day
will, glue pieces of patchwork on the jar to corer it
completely When dry the teacher will spray the jar with
laquar to make it shine be sure the pieces will stay on. Then the
teacher will use a hammer in screwdriver to make a slit
in each jar to drop in the coins. W hen finished the jars will
have each child's name in permanent marker on the
bottom.
Discuss how much they get and what they save. If you do not get an allowance, how much would be fair for you to get? What part would you save? What would you save for? How long would it take for you to save for it? What would you spend the rest on??
Then pass out the dittos. Name the coins, color the silver ones silver And the copper ones brown or copper. Read the questions together and fi11 them in. teacher should promote ten percent should be saved. Discuss the importance of saving money when something important comes up and so on. Color the pig. Cut out the coins they wish to save and drop them in the slit they cut. Cut out all the coins to save for next weeks project.
Week one Day Five
Time Social Studies
Objectives To make a job list for the class. To help
them understand that some jobs are worth more pay than
others.
Materials Chart, marker, parent's Letter.
Procedure The children have been told all year doing
well in school is their “job”. Now they are going to be
paid for “Jobs”. Lets make a chart of the jobs we do and
pay they are worth.
The children will have their own ideas. Every class will
be different.
When the chart is finished it should be laminated and
hung up before the
children arrive the next day.
Send parents letter I home
Week Two Day One
First thing in the morning
Objectives To begin paying the children for their "Jobs".
Materials Charts
Procedure Remind the children of the chart. Explain the most they can
earn a day is 80cents. The most they can earn for the week is $ 4.00.
They may buy something at the end of each day.
Or the may save it until the end of the week. Show the
laminated Price Lust chart. Discuss the things that
could be bought at night. Discuss what they could but on
Friday.
Week Two Day 1
Time Social Studies
Objectives To review scarcity, to introduce opportunity
costs, to begin decision-making.
Materials Chart. (job list, price list), crafts they might make etc.
Procedure First review scarcity. None can have everything he wants. Then introduce the opportunity cost of buying a sucker every night before they go home or saving up for free time I'm sure. How would you feel if you had to do a book report while others had free time?. You had already had candy everyday. Show them the crafts they might make. Every week should be something different a key ring for Mother's day, a wastebasket for their room, soap on a rope for Dad. Show them anything else that will be offered that they have not seen.
Now ask what decisions they have made.
Week two through Four Days One through Five, except the last Friday.
Time the end of the day.
Objectives To pay them what they have earned.
Materials Tag board coins and piggybanks, charts.
Procedure Keep a third chart with each child's name and check it for each thing he has done that day. Pay them the amount but make them count it back to you as they should do in a bank.
The first week always pays them the correct amount. After that
make mistakes to see if they can catch you. Do not let them
leave the desk until their money is right. I have a sign that
reads “Cashier” that is in fun for them to read. If anyone
wants to send their money they tray after everyone is paid. Then
all of the banks go behind the teachers desks on a shelf with
their name in the spot their bank goes.
Week Two Day two
Am Review Charts for first five minutes.
Social Studies
Objectives to reinforce saving money
Materials Paddington Bear, PBS Tape
Procedure Remind them that I have read them Paddington bear during story time about a month ago. Now we get to watch him in cartoon.
He is going to a bank. What will he see there? what might he learn?. Show the tape. Then ask the questions again.
week Two Day Three
Time Social Studies
Objectives To identify producers, consumers, and savers.
To discuss decision-making.
Materials Aesop Fable “Grasshopper and the Ant story”
Procedure . Read and discuss the Grasshopper and the Ant. Who were the producers, the consumers and the serves?. Discuss the decisions made between work and play and the consequences.
Discuss the problem if everyone saved and no one spent.
Week Two Day Four
Time Social Studies
Objectives To reinforce the value of saving money.
Materials Filmstrip projector, tape recorder, SVESinger, filmstrip and cassette “Pennies, Nickles,Dimes”
Procedure Show filmstrip then discuss how the value of saving money that was in the filmstrip relates to us and our saving for something special on Friday.
Week Two Day Five
Time End of day
Objectives To allow them to make decisions using the money they have earned this week.
Procedure let them but from the price list on a first
come first serve basis. With only 12 children none
should be disappointed with their choices available.
Week Three Day One
Time Social Studies
Objectives
To review opportunity cost and benefit analysis
To discuss present consumption vs capital accumulation
To evaluate the students decisions and allow them to discuss them without making value judgements.
Materials Chart
Procedure Review each child's purchase on Friday. This is great if someone was saving for a toy or a day without work ($ 8.99)
But if they aren't it can still be discussed how it was worth it not to buy candy everyday so they could have free time or a fun activity on Friday. Candy only lasts for a short time but the activity time was for a half an hour.
Ask the children did you like what you got? Was it worth waiting for? Would you change your decision? Are you going to buy the same thing next week?
Week Three Day two
Time Social Studies
Objectives To practice making choices
Materials
Tag board cards cut out 'x+"; the list of wants the �l9ren mentioned on one week one should be individually t on the cards;
Procedure The students individually ask question which can be
answered with a “yes” or “no”. One student has picked a
card and will answer the questions ( teacher may help)
There can only be 20 "no”. answers. If the children have not
guessed it by then the child may nick another. After a
while the children will learn to ask discriminating
questions, wou1d a nine-year-old girl want this? Would a teenager want
this? Rather that I it a dog?
week Three Day Three
Time Social Studies
Objectives To become more aware of opportunity costs
To make wise decisions and name the opportunity that was lost by making the decision they did.
Materials Pictures from Peahody Developmental Language Kit
gun, gold watch, fishing pole, five-dollar bil1, cat,
gold fish, dog, wagon, earrings, kite, yoyo, etc.
Game this or that??
Procedure Present students with a problem situation.
Example A man is shipwrecked of an island. Before his boat sinks, he only has time to take one thing with him. What should he take, a gun, a fishing pole or his gold watch?
Example B A family wants to get a pet. They can have only one. They live in an apartment house in the city. Which would be a better pet - a cat, a gold fish, or a dog?
Example C A girl has five dollars. She must decide whether to buy the neighbors used wagon or earrings for her mother's birthday. No other choices should be allowed.
Example D An eight year old boy lives alone with his father on an isolated island. He wants to buy a toy. Which would be better a yoyo or a kite? Have the students list positive reasons for selecting each of the items. Have the students decide which they would select. Ask the students what hey have gained by selecting that item and then have them identify what they have lost by selecting that item. Ask the students to think about what they have done. Finally ask them to make a generalization about their values by observing their selections. (We like playing outside. We like buying things for other people. We value things that last.) This will be very difficult for the E.M.R. child, but it should be a worthy lesson to work for.
Week Three day Four Twenty questions (See Week Three Day two)
Day five same as Week Two Day Five
Week Four Day One same as Week Three Day One
Week Four day two same as week Three Day Three this or that
Week Four day Three
Time Social Studies
Objectives To remember that saving money is good.
To become aware that their are longer periods to save money besides a
piggy bank.
To become aware that banks pay you to keep your money there.
Materials “Adam builds a bank; saving for goods and Services” BFA
Educational media filmstrip 4 of primary Economics when he wasn't
Using it. Discuss how much money Adam had when the bank paid him to keep it. Discuss how longsome people save money, (Once a year for a vacation, or many years for a house, or college money,) Discuss the good and bad things about keeping money in a bank.
Week Four Day Four same as Week Two day Five last Day to buy or be paid.
Week Four day Five
Time Social Studies Discuss cost benefit analysis
Materials Money replicates, banks, envelopes, ditto 2 to parents
Procedure Discuss cost benefit analysis. Send replicates of money home in envelopes. Ask the parents to let their child count different amounts out of them over the summer. Send home the parents evaluation. Collect on Monday.
