1. Opportunity cost
Make the right choice

2. Standards
12.1.1
Students understand common economic terms and concepts and economic reasoning.
Examine the causal relationship between scarcity and the need for choices.

3. Standards
12.1.2
Students understand common economic terms and concepts and economic reasoning.
Explain opportunity cost and marginal benefit and marginal cost.

4. Standards
12.3.2
Students analyze the influence of the federal government on the American economy.
Identify the factors that may cause the costs of government actions to outweigh the benefits.

5. SWBAT
Define values and be encouraged to make spending choices consistent with their own values.
Define opportunity cost and apply the concept to spending decisions. 
Define delayed and instant gratification, and how each influences current and future spending choices and opportunities.
Correlate how the choices they make now affect future opportunities.

6. Don't eat the marshmallow yet

7. Learning Objective
With so many innovative and exciting products and services, you are faced with tough choices. Equally as challenging are the concurrent marketing efforts of a billion dollar industry that understands how to attract consumers. Couple this with an innate desire to want more than you can have, and it is evident why so many people make irresponsible spending decisions. Therefore, ingraining a decision making process that includes considering the opportunity cost of any spending decision is necessary to form responsible money management habits.

8. My goal for you!!!
The goal is for each of you is to understand the importance of spending money consistent with your values, and always considering the opportunity cost of spending choices to ensure your making the best choice.

9. Discussion Obstacles people face when they make spending choices.
Marshmallow
Instant Gratification – An unwillingness to give up something now in return for something later
Delayed Gratification – A willingness to give up something now in return for something later

10. Your task
Develop a list of products or services that you currently buy, and place them on either the "In" or "Out" side. If it is on the "Out" side, that means that based on opportunity cost or your own values, you regret your original choice because you feel that your money could be best spent elsewhere. 

11. Task cont. Financial calculator 18 years old $ per month?
HOW MUCH DO YOU NEED TO RETIRE?

12. Notes
BUDGET-A spending-and-savings plan, based on estimated income and expenses for an individual or an organization, covering a specific time period.
CHOICE-Decision made or course of action taken when faced with a set of alternatives.

13. notes
CONSUMERS-People who use goods and services to satisfy their personal needs and not for resale or in the production of other goods and services.
DECISION-A conclusion reached after considering alternatives and their results.
DECISION MAKING-Reaching a conclusion after considering alternatives and their results.

14. notes
FINANCIAL PLANNING-Setting short-, medium- and long-range goals; then collecting and analyzing income and expenditure information to determine how to meet one's goals.
GOAL-Something a person or organization plans to achieve in the future; an aim or desired result.

15. notes
INCOME-Payments earned by households for selling or renting their productive resources. May include salaries, wages, interest and dividends.
MONEY-Anything that is generally accepted as final payment for goods and services; serves as a medium of exchange, a store of value and a standard of value. Characteristics of money are portability, stability in value, uniformity, durability and acceptance.

16. notes
MONEY MANAGEMENT-A system for income and spending that allows for the achievement of financial and consumer goals.
OPPORTUNITY COST-The second-best alternative (or the value of that alternative) that must be given up when scarce resources are used for one purpose instead of another.

17. notes
RETURN-Earnings from an investment, usually expressed as an annual percentage.
SERVICES-Activities performed by people, firms or government agencies to satisfy economic wants.
SPEND-Use money now to buy goods and services.

18. Be responsible
Responsible spending behavior is consistent with those who consider the opportunity cost before making a purchase, are capable of delaying gratification to make choices, and make spending choices consistent with their values.