The Stock Market: Risks & Rewards
Lesson Plan: Scarcity, Choice, and Decisions
Activity 1: Planning the Prom
Your class has been engaged in various fund-raising projects during the past several years, and you now have a total of $9,635 to spend on a big bash - your last school dance. You may not spend more than this amount on the dance, but you do not have to spend all of it on the dance. Any money "left over" can be used for a class project, designed to help your school or community.
You have decided that there are three categories of expenditures for the dance. 1) hiring a band, 2) renting a place to hold the dance, and 3) providing refreshments and decorations. A committee has provided the following information:
Your task now is to decide, with the other members of your class, which band to hire, where to hold the dance, and what type of refreshments and decorations to provide. Your class must select one item from each expenditure category.
In what ways is this problem similar to economizing problems faced by your family? In what ways is it different?
Keep a money diary that tracks what you save and spend. It will tell you about when, why, and how you use money.