Session 1: Decision Making and Wants vs. Needs

Here is our general class outline. We started off with a fun icebreaker (Getting to Know You Bingo) which got everyone off their feet and interacting. We also had the girls establish their own group norms (aka rules) to help maintain a positive learning setting. Our class always ends with a current affairs article that somehow applies to our general topic of discussion. A link has been provided for you to read the article as well.

So here goes! Our general outline:

- What is Financial Literacy? Being educated, or “literate” about your personal money matters. It affects everyone, and the more you know the more financially successful you will be.

- Decision Making – we all have to make money decisions – Pepsi or coke? Candy or chocolate? Go to the movies with friends or stay in and study for a big exam.

- When we make a decision there is usually an Opportunity Cost – what is given up or sacrificed when one alternative is chosen instead of the next best alternative. So when you decide to stay in and study for a big exam, the opportunity cost is going to the movies and having fun with your friends.

- Wants vs. Needs – we all have wants vs. needs.

- Food, Shelter and Medicine are all needs.

- Ask class: What are examples of “wants"?

- What is Peer Pressure? Doing something because others are doing it.

- Some people make spending decisions because they are influenced by what their friends are doing.

- Remind them how we looked at different advertisements – marketers are always trying to influence the way you spend your money.

- Jobs/Income: Income is salary or money that is received by a person. For you, income might be through a regular allowance, for others maybe your income is from birthday money you receive.

- However you get money – it’s important to BUDGET so you don’t run out of money. By BUDGETING you will be able to afford what you need to as well as save up for some big things you might need or want.

- Current Affairs Article: Schools open lockers to advertising. Discussion Questions:

1. Why are schools considering selling advertising space?

2. If your school started doing this, do you think your spending decisions would be influenced by the advertisements?

3. Do you agree with advertising to children in school?

4. What the pros and cons of selling advertising space?

5. The article mentions “10% of the available surface” – is 10% too much, too little? What are the consequences of making 100% of available surface open for advertising, or going even further?