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Spending Money

It's a Money Thing Junior Lesson #2

Spending Money
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It's A Money Thing

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.Spending Money - choices

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.

Spending Money - needSome 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!

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?

 

What was the opportunity cost of your choiceSpending Money - want

People earn an income when they are hired by an employer to work at a job. Income is earned as a wage, a salary or a sales commission.

 

 

 

 


Activity

Did you know a shopping list can save you money? It helps you buy only the things you need. Pick up all 5 items on your shopping list in the maze below then go to CHECKOUT. Download the printable PDF.

IAMT Jr Spending Money - activity sheet


ComicIAMT Jr - Spending Money Comic

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