Blue Eagle Credit Union offers free financial literacy educational materials great for kids through adults! We are sharing one of the courses here that will help your kids learn how to make wise decisions when spending money. They'll learn about wants versus needs, peer pressure and the cost of opportunity. Read through this article and discussion questions with your child and help them complete the attached activities.
What is Opportunity Cost?
You make many choices every day.
You choose how to spend your time.
You choose how to spend your energy.
You also choose how to spend your money.
Did you know that every choice you make has an opportunity cost?
An opportunity cost is the value of the options you didn’t choose.
For example, let’s say you spend $20 on a new book. You could have spent that $20 on many other things. You could have bought a poster for your room or a meal at a restaurant. Reading has more value to you than a poster or a fancy meal, so you bought the book instead. As a result, your bedroom wall will stay blank and you will eat at home. The opportunity cost of buying the book is a blank wall and leftovers for dinner. To you, the new book is worth the opportunity cost.
Some of the choices you make have value even when they are not very fun. For example, there is an opportunity cost to reading these words right now. You could be doing something more fun. You could be watching cartoons or making up a new dance. You decided that learning has more value to you than a cartoon or a dance...at least for now!
| GROCERY STORE CHALLENGE MAZE | ||
| COMIC STRIP COLORING SHEET | ||
| DISCUSSION QUESTIONS | ||
| 1. Other than money, name two other things you choose to spend. 2. What is opportunity cost? 3. What is a choice you made today? 4. What was the opportunity cost of your choice? | ||
Thank you to our friends at Blue Eagle Credit Union for sharing these fun and educational materials on being smart with money!
Did you know Blue Eagle Credit Union encourages savings accounts for kids? They'll even reward you for earning good grades on your report card!
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