Economic Principles to Prepare Students for an Unpredictable Financial Environment. Kimberly Roy November 17, 2017

Transcription

1 Economic Principles to Prepare Students for an Unpredictable Financial Environment Kimberly Roy November 17,

2 Agenda 2 Who is NEFE Economic Nuts and Bolts The Evolving Meaning of Money Activities Connecting Economic Principles to Financial Decisions Handouts online at: HSFPP.org/ECON

3 What is the National Endowment for Financial Education (NEFE)? 3 NEFE is a nonprofit, noncommercial, independent, self-funded, private foundation Everything Provided by NEFE is FREE. NEFE s mission is to inspire empowered financial decision-making for individuals and families through every stage of life. Education Awareness Research

4 4 Economic State of Mind

5 Economics in Star Wars 5

6 Dreaming Big! How much money would you need to earn to buy everything you could ever want? People have limitless wants, but limited resources.

7 Never enough Scarcity: not having enough resources to satisfy your wants. A.S., fifth grader,

8 Everyone is an Economist! Economics is the art of making decisions in the presence of scarcity. Goal of Financial Education: Teach students to make mindful financial decisions understanding the benefits, costs and future consequences of their options and opportunities.

9 How do I decide???? Before you can make a good decision, you need to decide: What is your criteria for a successful outcome?

10 Finally a phone!!! You ask your mom for a cellphone. When she asks you want you want you say, I don t know, any cellphone. Would you be happy if she came home with Thinking through your criteria for success makes it more likely you will be happy with your choice (or your mom s).

11 11 Historical Meaning of Money

12 all societies have economic systems, whether or not these involve the use of money. All societies have customs specifying how people gain access to natural resources; customary ways of transforming or converting those resources, through labor, into necessities and other desired goods and services; and customs for distributing (and perhaps exchanging) goods and services. 12 Carol R. Ember and Melvin Ember, Cultural Anthropology 7th Edition, 1993, p. 104

13 The Ascent of Money 13 The Ascent of Money - Dreams of Avarice (Episode 1), Niall Ferguson:

14 The Evolving Meaning of Money 14 Have students choose one of the events to research and explain how it changed our relationship with money. Assign students to talk with their parents about one of the events in their lifetime. What do they remember? What did it change?

15 What Comes Next? 15 Review expert predictions Challenge students to make their own predictions on how their relationship with money will change in the future.

16 16 Activities to Make Economics Real

17 Topic: Money Values and Beliefs 17 Facilitate a discussion about how values influence our spending habits. Point out how values differ from person to person. Values will also change as a person moves through life situations such as single to married to single or employed to unemployed. NOTE: Be sure to impress on students that there are no wrong answers, and that everyone has different values when it comes to money. (This is one reason that money can be such a stressor in a marriage!) Beliefs Experiences Family and Friends

18 18 Activity: Values and Spending Survey

19 Topic: Opportunity Cost 19 Seinfeld Video Jerry Seinfeld Night Guy and Day Guy:

20 Activity: 20 Provide examples when you bought something overpriced or not worth it. Estimate how much money was wasted. What else could you have bought? Create videos, songs, skits, etc. for a class competition. What is the spending habit? Is this a sensible or unwise habit? Why? How much does the habit cost? What else could the money be used for? When have you wasted money? Wasted Money Spendster Video:

21 21 Topic: Purchasing Power Parity Big Mac Economics Video:

22 22 State Comparison of Value of $100

23 23 Activity: Tale of Two Cities

24 24