Warm Up 1.Write the name of your favorite cereal on the front board : 2.On a piece of paper, answer a)Why is that cereal your favorite b)What is its advertisement

Pre-Assess Chapter 1 Turn to page 45 Answer 1-16

Let’s Analyze Which factors most influence your choice in cereal? Profitable businesses go to great effort to research what consumers WANT and then provide it Why do you think businesses do this?

Today’s Objectives Describe – Values – Goals – Opportunity costs Explain – Need vs. Want

You’ve got the Power! Have you ever heard… “The customer is always right” A business cannot success without them! YOU have the power to CHOOSE – What to buy – Where to buy it Knowing your values is a good place to start

Values Values are your principles (standards) by which you live When you list your values you are judging – What is right or wrong – Good or bad – Important or unimportant to you Example: wanting to spend time with your family and friends

Different types of values In your notebook… 1.Life values 2.Work values 3.Cultural values 4.Social values 5.Demographic values

Values CHANGE As you learn and grow As a society – In the 1950’s women stayed home, today families place a higher value on a mother’s contribution to the household income DO NOW: What are some of your values? – Make a list – Prioritize – Need an example? Next slide!

Examples of Values Family Friendship Education Financial Success

Goals The things you want to accomplish in your life are GOALS They come from your values, needs, wants, hopes and dreams NEEDS: things you cannot live without WANTS: things you would like to have but could live without

With a Partner NeedsWants

Your life span Why do you think a person’s wants and needs change as he or she ages? Short term vs. long term goals – What do you want to do after you graduate – Long term career – Short term goals to reach that goal How are short and long term goals different from needs and wants?

Opportunity Costs Having a plan is a great way to reach your goals But…what about the things you have to give up? If you are a full time student, you will not have as much time to have a job and make money The income you give up while you’re in school is your OPPORTUNITY COST

Opportunity cost is the value of your next best alternative whenever you make a choice Because different people value different things, your opportunity cost may not be the same as a friend’s The opportunity cost of buying a CD may be the baseball cap you also wanted but didn’t have enough money for both Every decision you make has an opportunity cost

Closure 1. You have just found $30! – How would you spend it? – What is your opportunity cost? 2. What is the opportunity cost of having a job after school? 3. What is the difference between a need and want?