Common Cents

Discuss this quote: "I think the environment should be put in the category of our national security. Defense of our resources is just as important as defense abroad. Otherwise, what is there to defend?" - Robert Redford

Learn about and compare different payment methods in the Kansas City Fed's role play Payment Parliament. http://bit.ly/196JUbk

Read the book Alexander Who Used to be Rich Last Saturday to introduce saving money. Start with Alexander's dollar on the board and subtract the amount of his purchases throughout the story. Discuss Alexander's spending decisions.

Brainstorm the qualities that create credit worthiness. Assume the role of loan officers and review the credit histories of several fictitious individual who are requesting a loan. Decide to approve or reject the requests and provide rationale.

Use the lesson plan "Currency and the Fed" to introduce students to the functions of money and the Federal Reserve System: www.stlouisfed.org/education/assets/lesson_plans/Currency&Fed.pdf. Ask students to write a brief newspaper article on how money is handled by the Federal Reserve.

Read Saving Strawberry Farm by Deborah Hopkinson. Use the children's literature lesson to discuss the role banks played during the Great Depression: www.stlouisfed.org/education_resources/assets/lesson_plans/StrawberryFarm.pdf.

Introduce the concepts of producers and consumers. Brainstorm a list of producers, such as artists, bakers, farmers and manufacturers of different products. Ask students to role-play various producers as they create their products. Have classmates guess what good or service each producer provides for consumers.

Read Uncle Jed's Barbershop by Margaree King Mitchell. Use the children's literature lesson to discuss the challenges of entrepreneurship: www.stlouisfed.org/education_resources/assets/lesson_plans/UncleJedsBarbershop.pdf.

Ask students to compose a story about becoming an entrepreneur, including the name and type of their new business and a description of the capital and human resources they'd need.

Choose one principle from the Guide to Economic Reasoning and illustrate it using an everyday life situation. (Example: People gain when they trade voluntarily - a picture of a student trading a food item with another student at lunch.)

Just for fun, try saying this tongue twister quickly three times: Skyler scored the scarce scholarship.

Discuss the difference between fixed expenses (those costs that do not change) and variable expenses (those costs that can change). Ask students to interview a parent to discover what fixed and variable expenses they pay monthly. Report findings to the class.

Use the following questions to interview three people about their spending habits as consumers: Where do you shop the most? Are you more concerned with price or quality? Is customer service important to you? Compare interview results with a classmate.

Ask students to inventory their personal assets and liabilities and develop a graphic organizer with their results. Have them rate their personal financial situation as great, okay or needing improvement. Tell them to write three goals for their financial health in the next year.

Visit a local bank or credit union and ask for some deposit slips. Use addition and subtraction and place value to practice filling out the slips

Write a short story about your last five purchases and whether each was a want or a need. Include lessons you've learned about your spending habits and steps you can take in the future to purchase fewer wants and more needs.

Wants and needs may vary depending on culture. Research wants and needs around the world and compare and contrast them with your own community.

Choose a publicly-traded company, such as Amazon (AMZN), and follow the price of that company's stock each week for a month. Report whether the price has increased or decreased during that time, and provide a recommendation on buying the stock.

Through a story and activities, Piggy Bank Primer introduces students to economic concepts such as saving and budgeting: http://www.stlouisfed.org/education_resources/assets/lesson_plans/piggy_bank_primer/StudentSavingBudgeting.pdf.

Ask the class to brainstorm ways they could spend $10. List ideas and ask them to narrow it down to one, since the class has only one $10 bill. When there is disagreement on which one, discuss that the scarcity of the money to be spent forces us to make choices.

Use magazine pictures to create a collage of future wants. Develop a budget that includes long term savings goals to purchase these items within the next five to 10 years.

Use the Kansas City Fed's Exploring Economic Sectors lesson to learn how the Federal Reserve assesses economic conditions in the United States. http://bit.ly/13mAbfu

Discover how the recession influenced the savings habits of consumers in the Recession Lesson: "The Silver Lining of the Economic Downturn" at www.kansascityfed.org/publicat/education/teachingresources/RecessionLesson-SavingsHabits.pdf.

Is a home an asset or liability? Research this question and then draw an illustration to explain what you learned and whether you think a house is an asset or liability.

Consumer trivia: What is phishing? (a scam where internet fraudsters send spam or pop-up messages to lure personal information from unsuspecting victims.) Why should consumers be aware of this scam?

Use the "Professor Finance and Fed Boy Meet the Catastrophe Clan" lesson: www.kansascityfed.org/education to introduce the Credit CARD Act and consumers' credit rights and responsibilities.

Calculate the monetary costs and benefits of running a lemonade stand using the following assumptions: mix that makes 32-oz. of lemonade costs $3 per container and a package of 50 8-oz. cups is $5. You sell 48 8-oz. cups for $2 each. (costs=$44, benefits=$96)

Taylor purchased candy bars from the store at 50 cents each. She wants to sell them at school after lunch for $1 each. From what you've learned about supply and demand, what advice would you give Taylor regarding her price?

Read Isabel's Car Wash by Sheila Bair and Judy Stead. Discuss how Isabel started her car wash with help from investors, who became part owners with her. Did the car wash earn a profit or show a loss in the story?

Focus on and discuss human capital: the skills, talents and education that people possess. Discuss how improving human capital through education and training correlates with increasing income. Ask students to research and share education levels and average income of chosen careers by going to the Bureau of Labor Statistics website to look at the Occupational Outlook Handbook: www.bls.gov/oco.

Read The Panic of 1907 by the Boston Fed. Write a skit titled "We Survived the Bank Panic," describing the thoughts and emotions that people may feel as they wait in line to withdraw money before their bank closes for business. http://bit.ly/1840vMy

Learn how a bank operates as a business in the Kansas City Fed's There's No Business like Bank Business activity. http://bit.ly/150sooC

Watch the Economic Lowdown video on equilibrium at: http://www.stlouisfed.org/education_resources/podcasts/economic_lowdown_video_3.cfm. How do the concepts of surplus and shortage relate to market equilibrium?

How do high levels of employment affect economic growth?

Ask students to imagine they have landed on a deserted island and will be living there until they are rescued. Have them work in pairs to develop two lists: one of their daily needs to survive, and the other of their wants while on the island. Share lists and discuss ideas with the class.

If U.S. exports to China are worth $8 billion, and U.S. imports from China are worth $34 billion, what is the total trade amount? ($42 billion) What is the trade deficit? ($26 billion)

Discuss this quote: "Don't put all your eggs in one basket," and relate it to diversifying, or having a variety, of stock investments. Why is diversification a good strategy?

Introduce the concepts of profit and loss. Organize a classroom business selling a food or craft product. Have students figure the cost of materials (expenses); create the products; and decide on a selling price (income) to make a profit. Invite another class to view and buy the products using fake money. After the sale, have students figure the class profit/loss based onthis formula: total income - total expenses = profit.

Tell students to imagine they’ve just purchased their first used car. Have them name services their car will need to run efficiently, and goods they could buy to fix up their vehicle. Ask them to go online to find auto stores that provide these goods and services with item costs.

Research Mattel, Hasbro or other toy companies to see how they determine what toys to produce and supply to retail stores. Use the information you find to predict what toys might be popular in 2020.

Assume the identity of a superhero or a credit villain in the Kansas City Fed's role play Professor Finance and Fed Boy Meet the Catastrophe Clan to learn about the use and misuse of credit and how the CARD Act protects consumers. http://bit.ly/13jzWzX

What key historical events led to the establishment of the Federal Reserve System?

Discuss famous entrepreneurs that students are familiar with, such as Bill Gates, Oprah Winfrey, Walt Disney and J.K. Rowling. Look at: www.thelittlee.com/html/famous_entrepreneurs.html and ask students to choose one entrepreneur they are impressed with to research and share with the class.

Discuss fixed budget expenses (costs that remain the same) and variable expenses (costs that change). Write and perform a skit about college students living on campus who deal with these expenses.

Cut magazine or catalog pictures of natural, human and capital resources and place them randomly into paper bags. Divide students into groups and give each group a resource bag. Ask them to create a new business using their resources and share how each resource is used within their business to produce a product.

Discuss the quote: "In our rich consumers' civilization, we spin cocoons around ourselves and get possessed by our possessions." - Max Lerner

Write about the problem that occurs when people do not recycle resources and the resulting opportunity cost on the environment.

Trivia: Eldercare services are predicted to be one of the most profitable business opportunities in 2012-2013 due to a boom in the elderly population and longer overall life spans.

The Fed is the lender of last resort to financial institutions. Watch Federal Reserve Chairman Ben Bernanke explain this role in lecture one of The Federal Reserve and the Financial Crisis. Draw a political cartoon illustrating how the Fed might assist banks during a financialpanic. http://1.usa.gov/12Txk0q

Compare three different credit card offers. Make a chart showing the similarities and differences of each. Decide which offer is best for you and present your information tothe class.

There was no uniform currency during the Free Banking Era, so state-regulated banks issued their own banknotes. Brainstorm problems that could develop with many different currencies in circulation throughout the United States.

Look at the Federal Trade Commission's website: www.ftc.gov/bcp/edu/pubs/consumer/credit/cre34.shtm to learn about the Fair Credit Reporting Act. Discuss why consumers should order a copy of their credit report yearly.

A class of 28 students earned popsicles. The teacher bought 2 boxes of popsicles, with 12 in each box. How many more popsicles does the teacher need to avoid a scarcity in her classroom? (4 more)

What's your money personality? Are you a saver, avoider, spender, giver or worrier? Find out by taking the Money Make-up quiz at the end of the Kansas City Fed's Common Cents article "Watch and Learn". http://bit.ly/1923cSJ

Introduce the three types of resources, giving examples of each:Natural - gifts of nature used to make goods and services;Human - workers who make goods and provide services;Capital - goods made and used to provide other goods and services.Hand out magazines and have students find pictures of each type of resource. Use images to create a class resource poster with three columns labeled for the different resource types.

The launch of the Air Jordan retro basketball shoe sale caused long lines, fights and store closings across the United States. Discuss the concepts of supply and demand in this situation. Ask students to give reasons why these shoes sold out, even though their retail price was $180 a pair.

The interest on your savings account has increased from 1% to 2.5%. How much interest would your $100 deposit earn in a year (without compounding) at each percentage? ($1; $2.50) Explain how receiving interest can be an incentive to save.

Discuss this proverb: "It is a wise man who lives with money in the bank, it is a fool who dies that way."

Track expenses for a week and then create a spending plan to make sure your expenses don't exceed your income.

Research and list the components of GDP by expenditure. What is the largest component of U.S. GDP? (consumption)

Gas prices are $3.29 a gallon and then increase to $3.69 a gallon due to a shortage. How much would 18 gallons of gas cost at each price? ($59.22; $66.42) How much would you save if you purchased gas at the lower price? ($7.20)

Discuss this quote: "A man with a surplus can control circumstances, but a man without a surplus is controlled by them, and often has no opportunity to exercise judgment." - Marshall Field

Design a new $500 bill with your nominee in the portrait. Remember to include legal currency details, such as denomination, serial numbers, seals and signatures. Add additional details to make your note unique.

Working in groups, use restaurant menus to pick something to order and then calculate the sales tax on the order. Report the cost with tax and figure the tip using the tax rate as a guide.

Ask students to work with a partner on the following income/expenses problem: You want to convince your family to buy a new computer to replace the outdated one at home. Create a visual that gives family members ideas on how to cut monthly expenses (such as food, clothing and entertainment) in order to save income for the purchase.

Interview family members or neighbors about the recent recession and any changes or effects it had on their lifestyles. Report your findings to the class.

Create a trophy that could be awarded as a classroom incentive for the best singer, athlete or leader in the group.

Debate this topic: "The benefits of making financial mistakes outweigh the costs."

Discuss this quote: "The only thing we have to fear is fear itself". - Franklin D. Roosevelt. How could these words relate to bank panics?

Your credit card company sets your minimum payment at 2% of your balance. If you have a $1,000 balance on your credit card, what will your minimum payment be? (answer: $20). (Keep in mind, if you only pay the minimum balance most of your payment goestoward interest.)

Introduce stocks as shares of ownership in a company. Ask students to choose a company they are familiar with and follow its stock price online or in a newspaper. Have them record the closing stock price each Friday for a month. Ask them to give a presentation with the following information: the weekly profit/loss from shares purchased (subtractclosing prices from one week to the next); and the monthly profit/loss (subtract week one from four).

If you had to choose a president for a new $200 bill, which choice would you select and which would be your opportunity cost? A) John Kennedy or B) Franklin Roosevelt. Have students discuss why they made their choice.

Use the Recession Lesson "Navigating the Fear of the Unknown" (http://kansascityfed.org/publicat/education/teachingresources/RecessionLesson-EconomicUncertainty.pdf) to learn about the role that economic uncertainty played during the recent recession for businesses and consumers.

Research your Federal Reserve Bank or Branch Board of Directors members, including the industries and states they represent. Write a short essay explaining why each board member's input is important to understanding the regional economy.

Discuss the use of income to purchase holiday gifts and ask students to make a list of five items they'd like to buy for friends, including the price of each gift. Looking at the total amount they'll need, will they earn enough income to make purchases? How might they earn more money to complete their shopping?

Use the lesson "M&M Interesting," found at http://ecedweb.unomaha.edu/lessons/M&M6-8.pdf# to learn about the advantages of compound interest. Discuss why it is important to start a savings account while you are young.

Discuss the meaning of the following quote: "Budget: a mathematical confirmation of your suspicions." - A.A. Latime

Create a PACED (Problem, Alternatives, Criteria, Evaluate, Decision) grid to determine the costs and benefits of a used car decision. Possible criteria include model; year; gas mileage; and insurance costs. Visit www.econedlink.org/lessons/docs_lessons/463_PACED1.pdf for a sample grid.

Cut out or draw pictures of three of your top wants. Estimate how much they cost and determine a budget or way to save for these items. Present your wants and savings plan to the class.

Use Lesson Two "Budget to Save: Developing a Budget" from Building Wealth in the Classroom: www.dallasfed.org/education/pubs/wealth_classroom/02_lesson.pdf to discuss budgets in relation to financial goals. Do the suggested activity of a budget analysis for a high school senior saving for the prom. Discuss areas where this budget could be streamlined to meet the student's financial goals.

What innovations and technological advancements have changed the U.S. payments system in the last 30 years?

Currency is printed at the Bureau of Engraving and Printing (in Washington, DC or Fort Worth, TX) and then shipped to the Federal Reserve for distribution to local banks when needed. Find these locations and the Federal Reserve office closest to you on a U.S. map.

Using the Chicago Board of Trade (www.cmegroup.com), follow the prices of basic commodities used in producing food, such as corn, wheat and meat products. Report results at the end of the month and make a prediction on food prices for the next month.

You have opened a new video game store and hired five full-time employees. If starting salaries are $8.50 an hour and all employees work a 40-hour week, how much should you budget for employee salaries weekly? ($1,700)

Determine which economic principle relates best to the following quote, and then explain its meaning: "I'm talking about economics as forecasting the future. If you own auto stocks, you ought to be very interested in used car prices." - Peter Lynch

Ask students to keep a financial journal, writing down what they spendand save for 30 days. They should keep track of the amount they spendin one column and the amount they save in another column. At the endof the 30 days, ask them to total the amounts of each column and figurethe percentage of money they spent and the percentage they saved.

Use a graphic organizer to show how the price of gas varies from your state to several neighboring states. How can the same gallon of gas from the same distributor, such as Shell or Phillips, differ in price from one state to the next?

Watch the Economic Lowdown video on demand at: www.stlouisfed.org/education_resources/podcasts/economic_lowdown_video_2.cfm. Take notes on the six ways demand can change, giving an example for each. Create and present a skit showing the effects of supply and demand on the purchase of the newest cell phone, tablet or electronic device.

Create a map of the neighborhood surrounding the school. Have students add the names of businesses in that area to the map, as well as what good or service they sell. Ask students to suggest other businesses that would complement those already in the neighborhood.

Write an essay on the topic of rebates as incentives for consumers when they purchase goods and services, such as electronics, cars, etc. Do you think rebates motivate people to spend more? Why or why not?

Read Scraps of Time 1960s: Abby Takes a Stand by Patricia C. McKissak. Use the children's literature lesson to learn about how taxes fund transfer programs such as Head Start and Medicaid: www.stlouisfed.org/education_resources/assets/lesson_plans/Scraps_of_time.pdf

Review the credit scenarios from the Dallas Fed's Building Wealth in the Classroom, Lesson 9. Choose one and decide whether the teen described should borrow money. Write a short persuasive essay with reasons to support your answer. http://bit.ly/10IsJHM

Estimate the cost: If you want to buy an item for $9.50 with a 9% sales tax, is $10 enough money?

Economic growth occurs with an increase in productivity, which is the amount of outputs (goods and services) produced per unit of input (resources). Form an assembly line production of bookmarks in class, and then try to increase productivity with more efficient assembly techniques.

Discuss capital resources in the area of technology by brainstorming types of technological resources used daily by students. Have students rank these devices by importance in their lives. Which of these capital resources could they do without? How would they compensate?

Discuss the fable of the Grasshopper and the Ant and its "saving for the future" moral. Rewrite the fable using human characters to make the spending and savings decisions.

Discuss the importance of the following quote to those who run their own business: "In the business world, the rearview mirror is always clearer than the windshield." - Warren Buffett

Use handout 3 from lesson 4 of Building Wealth in the Classroom from the Dallas Fed to compare the interest rate, fees and additional information on five account types from a local bank. Share your findings. Once everyone shares, discuss the account and bank you would select. http://bit.ly/18kHBE4

Imagine two people: one who has access to credit, and one who does not. Discuss the advantages of having access to credit and the barriers of non-access to credit and how it might shape each individual's future as his or her life unfolds.

Examine samples of foreign currency by going to: www.clevelandfed.org/Learning_Center/Online_Activities/explore_money/index.cfm. Compare bill features for three chosen countries. How are these notes similar? How are they different? What are some basic features that are common to all currency studied?

Use the above activity to develop small group businesses with four to five students. Each group should decide on their product, follow the production steps and sell the products to classmates using fake money. Students may choose to incorporate marketing techniques to increase sales. Groups should give a final business report, noting profit/loss, to the class.

Read Pickle Patch Bath Tub by Frances Kennedy. Use the children's literature lesson to discuss the topic of income in the story: www.stlouisfed.org/education_resources/assets/lesson_plans/PicklepatchBathTub.pdf

The mission of the Consumer Financial Protection Bureau (CFPB) is to make markets for consumer financial products and services, such as banking and credit, work for Americans. Research the CFPB at: www.consumerfinance.gov/regulations. Choose a regulation and share whether or not you think it is beneficial for businesses as well as consumers.

Introduce the stock market as a market in which the public buys and sells stock, or shares of ownership in companies. Brainstorm companies that students are familiar with (such as McDonalds, Nike, Toys R Us, etc.) and ask students to nominate the five best choices for stock purchases. Discuss the reasons for their picks.

How do students buy their goods and services? How many shop online versus going to brick-and-mortar stores? Discuss the use of shopping apps and how they help in comparing prices. Do students ever use apps to comparison shop?

Discuss "interest" as "payments made for the use of money." Ask students if they think earning interest when they deposit money in a savings account is a good incentive to save. Why or why not?

Read Uncle Jed's Barbershop by Margaree King Mitchell. Use the children's literature lesson to discuss starting a business at: www.stlouisfed.org/education_resources/assets/lesson_plans/UncleJedsBarbershop.pdf.

Write about a situation where a scarcity of food, money or time caused a problem, and how that problem was solved.

Explain why the United States, Canada and Mexico all gain from voluntary trade among their countries.

Use the lesson plan and role play "Professor Finance and Fed Boy Meet the Catastrophe Clan" to discuss the uses and misuses of credit: http://kansascityfed.org/publicat/education/teachingresources/fed_boy_lesson_plan.pdf

Ask students to choose a class business that might be successful in their school, such as a craft, food or entertainment business. Create a business plan, including the following: resources needed, production process, product display, advertising, pricing and labor schedule. Present the plan to your principal for approval.

Use a blank outline of your state to map your city and the major communities surrounding it. Draw images to represent the businesses and industries that are important in your region, such as a cow for agriculture or a truck for transportation.

Discuss that not all organizations are required to pay taxes to the government. These include schools, churches and not-for-profit groups, such as scouts, animal protection agencies and charities. Ask the class for reasons why these organizations are tax-exempt and whether they think this is fair to everyone else. Have students write a letter to the school newspaper explaining their opinion.

Opportunity cost is the next best choice given up when making a decision. Write and perform a skit where the main character makes a decision on whether to take a part-time job. Make sure to include the opportunity cost.

Look closely at a one-dollar bill. What symbols and words do you see that connect this bill with the Federal Reserve?

Starting your own business as an entrepreneur has opportunity for profit and possibility of loss. Brainstorm a list of potential businesses to start and then list possible profits and losses for one of those businesses. Debate whether the business risks are worth the rewards.

Visit the National Archives website to learn about the Homestead Act of 1862, which offered free land in the west to anyone over 21 if they agreed to farm it. Create a skit about the act and its effects on economic growth during that time. http://1.usa.gov/13v9G5v

Two friends set up a lemonade stand, charging 75 cents for two glasses sold. They lowered their price to 60 cents, selling four glasses. Their final price of 50 cents sold six glasses. Create a demand graph that shows this information. What was the twins' total revenue? ($6.90)

Use the Kansas City Fed's Teaching Tips: Is Your Bank Account Safe? to learn what happens when a bank fails and how the FDIC steps in following a bank's closing. Make a brochure that explains why money is well-protected in U.S. banks. http://kansascityfed.org/education/foreducators/high-school/teaching-tips/is-your-bank-safe.cfm

Develop a chart listing 10 tips that will help the environment through protecting natural resources. (Example: Pick up litter along trails and waterways.)

Draw a cartoon about a time when you experienced either a buyer's high or buyer's remorse after a purchase. In the panels, show the purchase, how the purchase made you feel and what you might do differently in the future.

Watch Katrina's Classroom from the Atlanta Fed to understand how natural disasters can affect banking services. Write a creative story about leaving your home due to a natural disaster and the steps you would take to be financially stable during this time.http://bit.ly/14C0lYK

Share pictures of different careers, and challenge students to analyze the costs and benefits of working in each career. Have them research information on salaries, education levels, work environment and job outlook by going to: www.bls.gov/oco/ooh_index.htm. Ask them to make a table listing this information for five careers, and then decide which career provides the most benefits and the least costs.

Look at a map of the Federal Reserve System. Discuss reasons why there are more Federal Reserve Banks on the East Coast than the West Coast. Find a map at http://1.usa.gov/11CECzE

The American economic system has tax laws that influence people's behavior. For example, a sales tax increase at restaurants might influence people to stop eating out. Write an essay on how a response to tax increases could have future consequences for businesses.

Discuss with students how they make daily decisions, selecting one choice and giving up a second as an opportunity cost. Have them draw two locations for their next birthday party, make a final decision, and label one "my choice" and the other "my opportunity cost."

Discuss that many economic scenarios can cause either a shortage or surplus of used cars. Ask students to brainstorm situations where a used car shortage might develop and where a used car surplus might develop. If you were a used car dealer, what would you do to avoid a large surplus or shortage?

List all the concepts from this planner on the board and number them. Number the sections of a beach ball similarly. Toss the ball to the class. Whoever catches it should explain the concept with the number closest to their right thumb. Repeat.

When a company wants to increase their profit, they can reduce their costs (expenses) or increase their sales (income). You are the owner of a new sushi restaurant. Describe two ways to increase your sales and two ways to reduce costs.

Write and perform a skit that explores the concept of fair trade, which aims to help producers in developing countries receive higher prices for their goods and improve social and environmental standards. Include advantages and disadvantages to fair trade policies.

Discuss this quote: "Entrepreneurs and their small enterprises are responsible for almost all the economic growth in the United States." Ronald Reagan

Brainstorm a list of careers or jobs that are associated with taxes (such as accountant). Research one of these careers to learn about the education qualifications, income level and demand for the job.

Watch the Economic Lowdown video on supply at: http://www.stlouisfed.org/education_resources/economic-lowdown-video-companion-series/episode-1-supply/. Draw and explain the basic supply curve shown in the video. Howcan this curve change based on market conditions?

Develop a role play about an entrepreneur whose ideas for a new product or business are not well accepted and how he/she meets these challenges and eventually becomes successful. Perform the role play for your class.

Explore bank supervision and regulation by watching Chapter 6 of the Philadelphia Fed's video The Federal Reserve and You. Write three key facts about each of the video segments: Supervision and Regulation History, the Role of Congress, and Bank Examinations.http://bit.ly/11dWBdQ

Discuss this quote: "Information is the currency of democracy." - Thomas Jefferson

Research three universities you may want to attend. Evaluate each one using a decision grid with these criteria: size, location, fields of study and tuition cost.

Summarize the tale of Little Red Riding Hood. What was the cost of Little Red ignoring her mother's advice on her way to Grandmother's house? What would have been the benefit ifshe had listened?

Look up the current national budget deficit at www.brillig.com/debt_clock. Consider methods to reduce the deficit, and write a letter to Congress with recommendations.

Draw a picture that shows farmers trading equipment, crops or labor with each other. Explain how this trade situation helps farmers and their families.

Discuss the topic of behavioral incentives and teens. Ask students which types of incentives work best to keep teens in line: extending curfew; car privileges; more computer/video game time; increasing allowance/funds. Tell students to give reasons for their choices.

Introduce the concepts of supply and demand. Give students play money and set out items for sale such as pencils, erasers and stickers. Set some prices low to encourage sales and others higher to discourage buyers. Let students shop, and then discuss the demand for the products at various prices.

Choose a job and research its income in two different countries. (Example: a starting teacher in Mexico is paid $10,465 a year, while a starting teacher in Canada is paid $35,400 a year.) Discuss why the same job can have different salary levels in different countries.

Examine currency from other countries and see what it can reveal about their culture and economy with the Cleveland Fed's Explore Money from Around the World online activity. http://bit.ly/11MDk3I

The St. Louis Fed offers instant message simulations on a variety of personal finance topics. Try one and learn about how to open a bank account. http://bit.ly/14C0qf1

Introduce the concepts of shortage and surplus. Give the example of a popular new toy on sale before the holidays as a possible shortage situation and a less popular toy as a possible surplus. After brainstorming other shortage/surplus situations, have students write a short story titled "Standing in line to buy..."

Trivia: U.S. household and nonprofit organizations' liabilities, which include mortgages, consumer credit, loans and securities, totaled almost $14 billion in 2010.

How will paying for goods and services change in the future? Invent and illustrate a new method of payment for the year 2025. Label invention parts and write a brief explanation telling how to use your payment method.

Introduce the concept of market clearing price: where buyers and sellers agree on a price to reflect supply and demand; also called an equilibrium price. Discuss the market clearing prices (MCP) of tickets to a concert. What can you assume if the concert is sold out? (MCP is too low.) If few tickets are sold? (MCP is too high.) If you were a concert promoter, what criteria would you use to set ticket prices?

You are a producer of a new and unique athletic shoe. Develop a poster or commercial to advertise your amazing shoe.

Develop a budget for a classic picnic. Use grocery ads to plan a meal for 20 students that includes an entrêe, two sides and a dessert, for $50 or less

Play 20 Econ Questions or Econ Word Wiz (www.federalreserveeducation.org/resources/fiftynifty) using "producer" as one of the words.

Before Harry Truman became the 33rd president, he was a Kansas City entrepreneur in which business? A) Finance B) Newspaper C) Clothing. Answer: C) He ran a business that tailored men's clothing.

Draw pictures that represent financial words and write the definitions of the words on the opposite side. Save these financial flashcards to use for review. Suggested words: bank, save, deposit, withdrawal, interest, emergency fund, short-term goal, long-term goal.

Professionals like lawyers and accountants may trade services, such as an accountant preparing a lawyer's taxes and a lawyer handling a legal matter from the accountant. Write a short news article about the costs and benefits of trading services.

"You Can't Always Get What You Want" by the Rolling Stones is a classic rock song that refers to wants and needs. Brainstorm a class list of other songs on the topic of wants and needs.

Discuss the exchange rate of currency as the ratio at which a unit of currency in one country can be exchanged for that of another country. Research the exchange rate for bills from five countries by going to: www.xe.com and using the exchange rate calculator. Which notes were worth more than the American dollar? Which were worth less? Why do you think one country's currency is valued higher than another?

Read Saving Strawberry Farm by Deborah Hopkinson. Use the children's literature lesson from the St. Louis Fed to simulate a bank run. http://bit.ly/138xL3x

Nominate a president or famous person in U.S. history (no longer living) for a new $500 bill. Write an essay describing how your nominee contributed to American history and why he/she would be a worthy candidate.

In preparation for homecoming, identify what is needed for the event. Then divide the list of items into goods and services. Rank the list in order of importance to you. What goods and services could you give up if you were on a limited budget?

Read Little House in the Big Woods by Laura Ingalls Wilder to learn about factors of production, which can lead to economic growth. Draw a flow chart that shows the inputs (productive resources) necessary to create chocolate chip cookies (outputs). http://bit.ly/120lmuN

The following statements are common descriptions of credit. Discuss each example and use one as a topic for a creative story.Credit is your reputation for financial responsibility.Credit is the time allowed for payment for something sold on trust.Credit is a source of revenue for financial institutions.Credit is NOT more money; it is "tomorrow's" money.

Just who was Salmon Chase and why was he on a $10,000 banknote? Explore the American Currency Exhibit: www.frbsf.org/education/teacher-resources/american-currency-exhibit/showcase-of-bills to learn how our country's history is reflected on our currency.

Create a map of the Federal Reserve System following the directions from the St. Louis Fed's 25 Cents Worth of History. Locate your state and outline it in your favorite color. Which Federal Reserve Bank is closest to where you live? http:/bit.ly/103kPqV

Explore myths and realities about the Fed using primary source materials in the Atlanta Fed's lesson Myths, Tall Tales, and Urban Legends: A Lesson on the Facts Behind the Fed. http://bit.ly/YeYn1k

Would you accept a cow as payment? Learn about the four characteristics of money and evaluate various forms of money, including cows, that were used as currency in earlier times by reviewing Kansas City Fed's lesson Early Forms of Money. http://bit.ly/1a8sTip

Review the story of the Three Little Pigs. Do a cost/benefit analysis to compare their houses of straw, sticks and bricks in terms of materials, labor, cost and effectiveness.

Introduce the definitions for save and spend. Describe short-term savings goals as items students want that will require saving for several months. Ask students to choose an item as a savings goal, estimate the cost of the item and figure the amount they would have to save weekly to reach their goal. Have students share their goals and savings plans with the class.

What is the value of the largest note ever printed? ($100,000) Which president was on the bill? (Woodrow Wilson)

Place a variety of job titles with their associated incomes in a hat and then place an assortment of typical monthly expenses in another hat. Draw one job and income and five monthly expenses. Determine if the income exceeds the monthly expenses.

Learn about federal income taxes, FICA, W-4 and W-2 forms in Know your dough Lesson Two: "W" is for Wages, W-4 and W-2: www.stlouisfed.org/education_resources/assets/lesson_plans/paycheck/IYP_lesson2.pdf.

Introduce the importance of weekly budgeting. Ask the class to use spending journals to track their purchases for a week. After journals are completed, students should share results for a class list of typical purchases and costs. Have students use the list to create a graph showing the areas where most purchases were made. Discuss ways to cut back on common buys to stay within their budgets.

Read Earth Day-Hooray! by Stuart Murphy. Use the children's literature lesson to discuss the topic of incentives in the story: www.stlouisfed.org/education_resources/assets/lesson_plans/EarthDayHooray.pdf

Learn more about the importance of credit score by watching "The Drawing Board: your Credit Score" http://www.youtube.com/watch?v=DWa34pB3pQA&feature=player_embedded.

Why do bank panics often lead to recessions or larger financial upheavals?

Compare the prices of store-brand items you need (milk, soap, clothing, etc.) versus the name-brands you want. Are the name brand items worth the price? Give reasons to back your opinion.

Why have other countries adopted mobile payments faster than the United States? Find out in the Atlanta Fed's podcast The Future of Mobile Payments. Write a description of a mobile payment option you think would work best in United States. http://bit.ly/11YTIOu

Introduce the following formula: Assets-Liabilities = Net Worth, or your economic wealth. Use Money Circle Theme 3, Lesson 1 found at: www.federalreserveeducation.org/resources/MoneyCircle. Discuss the assets, liabilities and net worth of the student in the Activity 1 story. Ask students to write a similar story about themselves, listing current assets, liabilities and assessing their net worth.

Without international trade, you may not have the items on your back. Ask students to look at the labels on their clothing and accessories, and list the countries that manufactured the items. Create a class graph showing all of the countries represented and compare label totals. Discuss whether clothing and goods made in the U.S. are a prevalent as they once were.

Learn about market equilibrium, or the point at which there is no shortage or surplus of a good or service, by watching the third episode of the Economic Lowdown Video Companion Series at: www.stlouisfed.org/education_resources/video_podcasts.cfm.

Discuss the difference between fact and opinion statements used to market a product. Hand out advertisements from magazines that contain both types of statements and ask students to identify the facts and opinions given. How can an awareness of these statements help consumers make wise choices?

Add together all the bill denominations currently in circulation. What is your dollar total? ($1+$2+$5+$10+$20+$50+$100=$188)

Play the online game Pursuit: On the Trail of Economic Growth from the Boston Fed with a small group or individually. This game traces the economic growth of New England throughout history. What events shaped the growth of this area? http://bit.ly/190VJ2L

Brainstorm types of financial emergencies (car break-downs, medical problems, home repairs, etc.). Discuss why it is important to have an emergency fund for unexpected expenses.

Learn about the sectors of the Federal Reserve's Beige Book in the lesson Exploring Economic Sectors, available at: www.kansascityfed.org/publicat/education/teachingresources/Exploring-Economic-Sectors.pdf. Use the discussion questions provided for each sector to explore the concepts of supply and demand.

Your credit report is like a report card. It is used to calculate your credit score. You can receive one free credit report every twelve months from each of the nationwide credit bureaus-Equifax, Experian, and Transunion-by visiting www.annualcreditreport.com.

Use Lesson 2: "W Is for Wages, W4 and W2" at www.stlouisfed.org/education_resources/assets/lesson_plans/paycheck/IYP_lesson2.pdf to learn about gross pay, net pay and the different deductions that are taken from paychecks.

Some areas routinely experience water shortages. List the ways you use water every day. How could you cut down your usage or recycle water to help reduce water shortages? Create a public service announcement featuring your water saving ideas.

If U.S. exports to China are worth $8 billion, and U.S. imports from China are worth $34 billion, what is the total trade amount? ($42 billion) What is the trade deficit? ($26 billion)

Discuss the meaning of this scarcity quote: "There is no scarcity of opportunity to make a living at what you love; there's only a scarcity of resolve to make it happen." - Wayne Dyer

Use GeoFRED from the St. Louis Fed to examine economic data for your state. How does your state's unemployment rate today compare with what it was in May 2009? http://bit.ly/13R3yWW

Go to the following website to learn about McDonald's: http://www.aboutmcdonalds.com/mcd/our_company/mcd_history.html. Look through the timeline and share three risks the company took as it became an established business.

Create a consumer profile, such as a 20-year-old college athlete, and make a collage of products or services using newspaper, magazine ads and/or computer-generated images that would appeal to that type of consumer.

If a company's losses are much greater than its profits, the owners might consider filing for bankruptcy. Research the concept of bankruptcy and write an essay describing the advantages and disadvantages.

Read My Side of the Mountain by Jean Craighead George. Use the children's literature lesson to discuss investing in human capital through acquiring skills and knowledge: www.stlouisfed.org/education_resources/assets/lesson_plans/MySideMountain.pdf

Display items manufactured by different countries, such as electronics, food products and clothing. Ask students to list the manufacturing country of each good. Have them locate these countries on a large blank world map, using one dot per manufactured good. Discuss reasons why some countries may have more dots than others.

Why is a bank holiday not something to celebrate, and why did President Franklin D. Roosevelt establish a national one in 1933? Find out in the Boston Fed's Closed for the Holiday: The Bank Holiday of 1933. http://bit.ly/11I1W4r

Think of a time when you paid for an expense you planned to buy (food, school supplies, etc.) and one you didn't plan to buy (spur-of-the-moment purchase.) Write a song that explains which was the better decision and why.

Use the Fifty Nifty Card Teacher Resource Guide's "Word of the Week" activity to integrate the concept of scarcity into reading, language and art: www.federalreserveeducation.org/resources/fiftynifty

Discuss homecoming expense choices and opportunity costs. For example, with a limited amount of money, would you choose a fancy limo for transportation? Would you spend more money for a high-dollar outfit instead? Or would you spend your dollars on an expensive restaurant meal before the dance? Discuss the reasoning behind your decisions.

What could happen to the price of gasoline if demand increases worldwide? Will prices increase or decrease? What could happen to the price if new oil pipelines add to the supply of gasoline? Will prices increase or decrease?

As entrepreneurs invent new products, they often make former products obsolete, or out of date and no longer used. An example of this would be the typewriter, which is now rare because of computer word processing. This concept is called "creative destruction." Ask students to brainstorm and discuss other examples of creative destruction due to new inventions.

Choose a food product and ask students to brainstorm all of the natural, human and capital resources used to produce it. (For example: a candy bar - cacao beans, land, sun, water, sugar, milk, farmers, factory workers, assembly line, wrapper, etc.) Ask students to draw pictures or work together on a mural showing the production process.

Visit the Federal Reserve Board of Governor's website to find tips for improving your credit score. Make a poster to share this information with your classmates. http://1.usa.gov/140Qjnb

Discuss this quote: "No one has a greater asset for his business than a man's pride in his work." - Hosea Ballou

Bank XYZ is examined and scored every year to make sure it is following banking rules as a safe and sound place for your money. The last four scores were 3, 2, 2 and 1. What is the average score of Bank XYZ? (Answer: 2)

Debate the pros and cons of using money as an incentive for getting higher grades. Is this a good practice? Will this encourage students to work harder for grades?

Introduce taxes by asking what happens on April 15. Discuss that one of the purposes of income taxes is to pay for public goods (such as parks and roads) and public services (such as police, fire and military workers). Ask students to imagine what would happen if the government didn't use tax money to provide these goods and services. Have them draw a picture of a situation where a lack of public goods or services caused a problem.

Explore money from around the world by visiting the following website: www.clevelandfed.org/Learning_Center/Online_Activities/explore_money/index.cfm. Discuss money symbols and designs from several chosen countries, then vote for the most beautiful piece of currency. Ask students to redesign a U.S. dollar using more symbolism and color.

Imagine your school district does not have enough money in its budget to provide all the services necessary to run your local schools. Assuming the role of the president of the school board, brainstorm a list of all the benefits of a tax increase. Then consider the perspective of a taxpayer against the increase and make a list of the monetary costs. Use the lists for a classroom debate on the topic.

Solve this income problem: Jay shoveled snow for five neighbors on his block. He earned $10 from two of them, $12 from the third, and $15 from the fourth and fifth. What was his income total? What was his average income from each shoveling job? (Total income: $62.00. Average income per job $12.40)

How does the following quote relate to today's rate of savings? "In the old days, a man who saved money was a miser; nowadays, he's a wonder." - Author unknown

Read The Pickle Patch Bathtub by Frances Kennedy. Use the St. Louis Fed's children's literature lesson to discuss the topic of developing a plan to achieve your savings goal: http://bit.ly/12LedV1

Become a board member of a Federal Reserve Bank and learn about the Fed's grassroots approach to gathering regional economic information in the Atlanta Fed's simulation Monetary Policy Starts in Your Own Backyard. http://bit.ly/ZNti2r

Look at a dime and identify the portrait. Use the lesson plan, "Why is Roosevelt on the Dime" available at: http://www.usmint.gov/kids/teachers/lessonplans/viewLP.cfm?id=29 to learn more about Franklin Roosevelt and why he was chosen for the dime.

Create a skit in small groups about possible financial situations at age 65 (i.e., no savings vs. wealthy investor). Discuss possible actions that can lead to financial security in retirement.

Research and record the population of five different cities or communities within your region. Develop a bar graph to compare the population results. Discuss how the population of an area can affect its economy, in terms of jobs and housing.

Brainstorm the skills and knowledge that will be needed in the future to work as a bank teller. Write a job posting that might be used by a local bank describing the characteristics that banks will be looking for when hiring tellers.

Your school had a pancake breakfast to raise funds for the sports teams. Expenses included paying for food and set-up costs, which were $949. The number of dinners sold was 275 at $6.00 each. What was the total income from the event? What was the profit after expenses? ($1650; $701)

Write a haiku on the importance of paying yourself first.

After assigning classroom jobs (i.e. line leader, paper passer, etc.), provide students with the opportunity to trade jobs with others. After trading is completed, discuss the students' reasons for their trades, making a list of the costs and benefits of each job during the discussion.

Compare the unit price, or cost per item, of products. To find unit price, divide the price by the number of pieces, ounces or pounds. What would be the unit price for a 20 pound bag of dog food priced at $15? ($.75 per pound)

Gather pictures from magazine, local newspaper articles, chamber of commerce promotional material, etc., and create individual or group collages that represent the economy of theregion where you live. Be sure to include the natural, human and capital resources of your area.

Introduce the first three principles, discussing incentives as things that influence the behavior of people. Discuss the concepts of opportunity cost and monetary cost. Provide the following scenario: You are trying to decide whether to start college right after graduation or wait and work for a year before enrolling. Create a table listing the opportunity costs and monetary costs, as well as the benefits of both choices. Make your final decision and explain your reasoning.

Divide students into two teams. Hold up pictures of natural, human and capital resources and take turns asking teams to identify the type of resource each is. Teams score points for correct answers.

Discuss the fact that $5, $10, $20, $50 and $100 bills have all been redesigned by the Treasury and will be updated again in the future. What is the incentive for our government to do this redesigning?

Would you want to bank at an unregulated bank? Give a two-minute oral presentation explaining your position.

What does money mean to you? Purchasing power? Security? Freedom? Brainstorm ideas and then create a collage showing what money can represent.

Read So Few of Me by Peter Reynolds. Use the children's literature lesson to discuss the topic of opportunity cost in the story: www.stlouisfed.org/education_resources/assets/lesson_plans/SoFewOfMe.pdf.

Money doesn't grow on trees, but it can grow. Watch No Frills Money Skills episode 1 from the St. Louis Fed. Develop a table showing how saving $1,000 at 3% annual interest can compound your savings over a 6-year period. http://bit.ly/11OJ5Pt

Read Free Enterprise: The Economics of Cooperation, available at www.dallasfed.org/educate/classroom.cfm, to learn about the role of businesses in a free-enterprise system.

Introduce and discuss the characteristics of an entrepreneur, such as being a risk taker; having high energy; being competitive; having a strong desire to be your own boss; and possessing a "never quit" attitude. Ask students to rank themselves "+" or "-" on each of these characteristics to assess their own potential for entrepreneurship.

Explain a market economy as an economy that operates by voluntary exchange between buyers and sellers in a free market not planned or controlled by government. Ask students to research this and other types, such as traditional and command economies: http://www.councilforeconed.org/resources/lessons/whateconisabout-sample.pdf. Discuss the differences in the three economies and why a market economy works best in our country.

Use the above activity to develop small group businesses with four to five students. Each group should decide on their product, follow the production steps and sell the products to classmates using fake money. Students may choose to incorporate marketing techniques to increase sales. Groups should give a final business report, noting profit/loss, to the class.

Write and perform a skit showing the impact of incentives on changing poor cafeteria behavior.

Discuss how businesses invest in capital resources, such as newer computers, machines and technology. How can spending money on these resources lead to profits in the long term?

Explain the meaning of the following quote: "Our necessities never equal our wants." - Benjamin Franklin

Read the original Federal Reserve Act, signed Dec. 23, 1913. Write down four key facts about the founding of the Federal Reserve System from the primary source document, available from the Librarians' Society of Washington, D.C. http://bit.ly/18qbUEL.

Credit card bills now provide an estimate of how long it will take to pay off a balance making only the minimum payment. Paying more than the minimum can substantially decrease the total amount of the purchase. Discover the savings using the credit card repayment calculator at www.federalreserve.gov/creditcardcalculator.

Discuss this quote: "When written in Chinese, the word �crisis' is composed of two characters. One represents danger and the other represents opportunity." - John Kennedy

Discuss this quote: "Competition is not only the basis of protection for the consumer, but is the incentive to progress." - Herbert Hoover

What can happen when a person or organization doesn't face all the consequences of their actions? Learn about moral hazard and the role it played during the recent recession and financial crisis in the Kansas City Fed's Recession Lesson: Moral Hazard. http://bit.ly/11JIFss

Use lesson 2, "W is for Wages, W4 and W2," from It's Your Paycheck personal finance curriculum to learn what deductions are taken from weekly/monthly income. Discuss why these deductions are necessary for the government and the individual. www.stlouisfed.org/education_resources/assets/lesson_plans/paycheck/IYP_lesson2.pdf

Hand out various grocery receipts to students with the sales tax blacked out. Discuss that some states tax only non-food items, while others tax both food and non-food. Have students calculate the sales tax for both situations.

Introduce the concepts of asset and liability. Brainstorm a list of students' current assets and discuss items that they would like to own as future assets. Ask students to design a tri-fold showing their assets now, possible future assets and their savings plan to get these assets.

Read Supermarket by Kathleen Krull. Use the children's literature lesson to discuss how technology has changed markets: www.stlouisfed.org/education_resources/assets/lesson_plans/supermarket.pdf

Draw a cartoon to portray one of the following label instructions found on consumer goods: hairdryer-never use while sleeping; iron-do not iron clothes on body; child's costume-cape does not enable user to fly.

Ask students if they have ever run a lemonade stand. Point out that this is an example of a market, where buyers purchase lemonade from sellers. Discuss how sellers set their prices so buyers are willing to purchase. Ask students to give examples of goods from other types of markets they have visited, such as farmers markets, flea markets and garage sales.

Many supermarkets have non-food services such as floral departments, pharmacies, banks, dry cleaning and DVD rentals. Why do you think supermarkets offer these additional services?

Research the meaning of marginal cost and marginal benefit. Businesses think on the margin, deciding whether the benefit of producing one more unit would be greater than or less than the cost. Share an example of this marginal cost/benefit situation from your research.

Read Less than Zero by Stuart Murphy. Use the children's literature lesson from the Philadelphia Fed to discuss the topic of borrowing and repayment of debt. http://bit.ly/113exYV

If a company produced 10 items at $7 per item and sold all 10 at $8.50 each, what is the profit for the producer? (10 x $1.50 = $15)

Introduce banking by asking which students have bank accounts and where they bank. Discuss how a bank operates as a business by asking the following questions: Do banks hold all money deposited in their vaults? (No) What do banks do with the deposited dollars? (They keep the required reserve amount on hand, and lend out most of the remaining dollars.) What would happen if banks kept all the deposited money? (Customers would not get loans, and the bank would not receive interest from the loans.)

Resource Trivia: What two fabric resources are used to make paper currency? (linen - 25%; cotton - 75%)

In groups, construct story problems that feature characters needing to calculate amounts to save or spend. Example: Joe wants to save $500 for a trip to Chicago in six months. How much does he need to save each week to meet his goal?

What three federal agencies regulate banks? (Office of the Comptroller of the Currency-OCC; Federal Deposit Insurance Corporation-FDIC; and the Federal Reserve)

Introduce budgeting as a plan for spending, saving and sharing money by balancing income with expenses. Ask students to divide drawing paper into three sections and draw examples of these three ways to use money. Ask them to explain which of these examples is easiest for them to do and to give reasons why.

In professional sports, a trade is a sports league transaction involving and exchange of players' contracts and/or draft picks. Have students research a sports trade in the NBA. Ask them to write a summary of the trade deal, including the advantages and disadvantages for the teams and/or players involved.

Use the limerick below to introduce surpluses and shortages. Ask students to make up their own poem about surpluses and shortages to share. There once was a price just too high,So that no one would bother to buy.On the shelf the stuff sat,Gathered dust like a floor mat.A surplus needs a lower price-that's why! And then there was a price oh so low,That folks stood in a long line, oh no!But the shelves were soon bare,Those still waiting sure cared.A higher price would have solvedtheir shortage woes.

Read Monster Musical Chairs by Stuart Murphy. Use the children's literature lesson to discuss the topic of scarcity in the story: www.stlouisfed.org/education_resources/assets/lesson_plans/MonsterMusicalChairs.pdf

Create a three-column KWL (What I know, want to know, and what I've learned) about credit cards. Brainstorm to complete the first two columns, then discuss information from the Federal Reserve's website on credit cards: www.federalreserve.gov/creditcard. Summarize what students have learned by asking them to create true/false statements about credit to complete the third column.

Read Something from Nothing by Phoebe Gilman. Use the children's literature lesson to discuss the topic of opportunity cost in the story: www.stlouisfed.org/education_resources/assets/lesson_plans/SomethingNothing.pdf

Play "Econ Bingo" after reading directions, downloading bingo cards and sample money from the Fifty Nifty Econ Cards website: www.federalreserveeducation.org/resources/fiftynifty. Award $5 of money for each bingo during the game. Let winning students use their income to purchase incentives you have supplied.

Research the United States' top 15 trading partners by going to: www.census.gov/foreign-trade/statistics/highlights/topcurmon.html. Create a bar chart that shows three things: U.S. total trade with its top 15 trading partners, U.S. exports with its top 15 trading partners; and U.S. imports with its top 15 trading partners. Discuss the graph and what it shows about U.S. trade.

Why is there a lag time between the beginning of a recessionary period and when it is officially declared a recession? Answer this discussion question and more with the Kansas City Fed's Teaching Tips: Recessions 101. http://bit.ly/11ML6M3

Discuss this quote: "Expenditures rise to meet income." - C. Northcote Parkinson

Introduce the first two principles: People choose and people's choices involve costs. Explain that opportunity cost is a person's second-best choice that is given up when the first choice is made. Ask students to give examples of choices they make during a school day, such as lunch and recess options, and name the cost and benefits of each choice.

The threat of war pushed the Federal Reserve Banks to open early because of bank panic fears. How else can war affect the economic health of a country?

Read Saturday Sancocho by Leyla Torres. Use the related children's literature lesson from the St. Louis Fed to learn about the advantages of paying money over bartering for goods.http://bit.ly/18D0u5U

Read A Chair for My Mother by Vera B. Williams. Use the children's literature lesson to discuss how part of the family income was saved to reach a goal: www.stlouisfed.org/education_resources/assets/lesson_plans/ChairForMother.pdf.

Stores often have a surplus of holiday candy after Halloween and Valentine's Day. What methods do store managers use to quickly sell their surplus? (half-price sales; special display) Describe three new and creative ways to reduce this surplus.

Check out the Kansas City Fed's Financial Fables ebooks to discover how "money morals" can help students from preschool to fifth grade become money smart. http://bit.ly/11OINYK

Develop a classroom currency to use as pay for completing projects, following rules and helping others. Discuss income earned from these tasks each week and plan a future action to spend this income at the end of the quarter, semester or year.

How can pocket money make someone a millionaire? Use anonline compound interest calculator to see how a small monthlyinvestment can grow over time by compounding. Write a plan toreach a financial goal using compound interest.

Create a collage using magazine pictures of items you'd like to purchase in the future. Narrow your choices to two favorites. What would your final choice/opportunity cost be?

Discuss this quote: "America's support for human rights and democracy is our noblest export to the world." - William Bennett

Discuss this quote: "As scarce as truth is, the supply has always been in excess of the demand." - Josh Billings

Discuss the stock market as a public place to invest dollars in stocks, or shares of ownership in a company. Go to: www.essortment.com/invest-money-mutual-funds-stocks-17734.html to learn about stocks vs. mutual funds. Which type of stock would you invest in? Give reasons for your answers.

Use the "Creative Story Starter-Enterprising Entrepreneur" activity from the Fifty Nifty website: www.federalreserveeducation.org/resources/fiftynifty to have students write about a new product or business they would create.

Discover what it takes to be a bank examiner at the Federal Reserve by reviewing an examiner job description from the Kansas City Fed. What are the three college degrees recommended for a bank examiner? http://bit.ly/18lWMKo

Choose a country and list the natural, human and capital resources available in that geographic area. Create a business producing a good or service that uses those available resources.

Using your local newspaper, find three advertisements for products. List examples of marketing techniques that producers use to entice customers to buy their products, suchas bargain prices or use of brand names. Share your results.

Change the lyrics of a popular song so that they now convince someone to keep their liabilities low for better financial health.

Food shortages occur throughout the world due to disasters, war and population increases. Research how the United States helps at: http://foodaid.org/resources/the-history-of-food-aid/. Create a visual illustrating how these food programs enable countries to become more self-sufficient.

Research the concept of balance of trade. Define this term and explain what it means to the U.S. economy.

Explore the evolvement of the payment system by watching Chapter 5 of the Philadelphia Fed's video The Federal Reserve and You. Create a public service announcement highlighting the Fed's role in providing cash and electronic payment services. http://bit.ly/11dWBdQ

Why is money deducted from your paycheck and where does it go? Learn how to read a paystub, discuss different methods for receiving wages, and discover ways to get more from your paycheck with the Kansas City Fed's Putting Your Paycheck to Work resources. http://bit.ly/17nFIa0

Discuss opportunity costs in buying school supplies with students. What backpack choices did they make, and what designs were their second choices? Did they consider mechanical pencils vs. regular pencils? Did they choose markers or crayons? Talk about how they made their decisions.

Use actual coins to show that quarters are 1/4 of a dollar, dimes are 1/10 of a dollar, nickels are 1/20, and pennies are 1/100. Use coins to add fractions to see if you have enough money to pay for sample small items.

Look carefully at a picture of a $10 bill. Identify the following features that make the bill legal currency: denomination amount; presidential portrait; serial numbers; Federal Reserve and Treasury seals; important signature. Ask students to look for additional features and discuss.

Talk about the choices and opportunity costs of school cafeteria lunches with students. Compare the entrêe, salad, sandwich and other choices for the day. What final choice did they make? What was their opportunity cost? Continue each day for a week and have students graph individual and class choices and opportunity costs.

Calculate this profit/loss stock statement: 100 shares of XYZ Electronics bought at $29 each + $1.50 broker fee ($2901.50); 100 shares sold at $35 each - $1.50 broker fee ($3498.50); ($3498.50-$2901.50 = $597 profit).

Discuss the resources used in the production of chocolate (cocoa beans, sugar, milk) and the producers of each resource. Ask students to choose any product, make a list of resources used in its production, and count the number of producers involved in the process. Can anyone find a product that has more than five producers?

Explain this quote: "Competition is not only the basis of protection to the consumer, but is the incentive to progress." - Herbert Hoover

The Federal Deposit Insurance Corporation, or FDIC, insures bank accounts up to $250,000 per account holder. What part of $1,000,000 is $250,000? (answer: one fourth or 25%)

After discussing entrepreneurship, ask students to interview an entrepreneur in their community. Interview questions could include: describing their business; explaining how they financed their venture; discussing any challenges in their business; and describing a typical work day. Share completed interviews with the class.

Review your monthly family budget to determine how much your family spends on wants vs. needs. Discuss how your family might reduce the dollar amount of wants over the next few months. Report your budget-saving measures to the class.

Introduce the concepts of imports and exports. Learn the top three imports and exports of your state by visiting: www.census.gov/foreigntrade/statistics/state/data/index.html. Discuss possible reasons why these resources made the top of the list. Choose a neighboring state and do the same research. Create two Venn diagrams comparing both states' imports and exports.

Become better informed about payment cards from the Philadelphia Fed's resource What You Need to Know about Payment Cards. Design a poster showing the advantages and disadvantages of the three main types of payment cards. http://bit.ly/18D0HGm

Think you have what it takes to steer our country's central bank? Play the Chair the Fed game from the San Francisco Fed to try your hand at monetary policy. http://sffed-education.org/chairthefed/default.html