Six Basic Ways to Teach Six Basic Ways to Teach Economics/Entrepreneurship In Economics/Entrepreneurship In

Your ClassroomYour Classroom

1. Teaching Activities on Specific 1. Teaching Activities on Specific ConceptsConcepts

2. Classroom Mini-Economies 2. Classroom Mini-Economies (Classroom Currency) (Classroom Currency)

3. Classroom Businesses3. Classroom Businesses(Using Real Money)(Using Real Money)

4. Literature-Based Instruction4. Literature-Based Instruction

5. Using the Stock Market Game5. Using the Stock Market GameTMTM

6. Everyday Classroom Situations6. Everyday Classroom Situations

What is a Mini-Economy? What is a Mini-Economy?

And And

Why Should I Use One?Why Should I Use One?

The mini-economy is a form of economics instruction in which students participate in a classroom economy in order to simulate real world economic activity.

Five Basic Elements of Five Basic Elements of a Mini-Economya Mini-Economy

ECONOMICS INSTRUCTIONECONOMICS INSTRUCTION

CLASSROOM MANAGEMENTCLASSROOM MANAGEMENT

APPLICATION OF BASIC SKILLSAPPLICATION OF BASIC SKILLS

MONEY MANAGEMENTMONEY MANAGEMENT

ENTREPRENEURSHIPENTREPRENEURSHIP

Why Use a Why Use a Mini-Economy?Mini-Economy?

Reason 1:Reason 1: The Mini-Economy Helps Teach Economic Concepts

Reason 2:Reason 2: The Mini-Economy Integrates Easily into the Rest of the Curriculum

Reason 3:Reason 3: The Mini-Economy Improves Student Learning

• Real as opposed to vicarious

• Active rather than passive

• Actual decision-making and bearing the consequences

Reason 4:Reason 4: The Mini-Economy Models Our Economic System

Reason 5:Reason 5: The Mini-Economy Is a Tremendous Motivator

Reason 6:Reason 6: The Mini-Economy Helps Students Learn How to Manage Money

Reason 7:Reason 7: The Mini-Economy Develops Entrepreneurial Competency

Figure 1-2Figure 1-2

Types of Mini-EconomiesTypes of Mini-Economies

COMPLEXCOMPLEX

Kourilsky

II II ● II ●

TEACHER TEACHER STUDENT STUDENT

DIRECTEDDIRECTED DIRECTED DIRECTED

IIIIII IV IV

●●

New Mini-EconomyNew Mini-Economy

SIMPLESIMPLE

Three Important Things to RememberThree Important Things to Remember About Operating a Mini-EconomyAbout Operating a Mini-Economy

1.1. EXPAND MINI-ECONOMYEXPAND MINI-ECONOMYACTIVITIES GRADUALLY ACTIVITIES GRADUALLY

Don’t Try to Do Everything at OnceDon’t Try to Do Everything at Once

2.2. GIVE STUDENTS RESPONSIBILITYGIVE STUDENTS RESPONSIBILITYFOR HANDLING MANY FOR HANDLING MANY MINI-ECONOMY DETAILSMINI-ECONOMY DETAILS

Don’t Do What Your Don’t Do What Your StudentsStudents Can Do Can Do

3.3. USE THE MINI-ECONOMY TOUSE THE MINI-ECONOMY TOTEACH BASIC ECONOMIC TEACH BASIC ECONOMIC CONCEPTSCONCEPTS

Don’t Use the Mini-Economy Don’t Use the Mini-Economy Primarily for Classroom Primarily for Classroom Management Management

“ “My son is one of the students with My son is one of the students with special needs. His disability – special needs. His disability – autism – makes it very difficult for autism – makes it very difficult for him to understand abstract him to understand abstract concepts….Through the use of concepts….Through the use of these many different approaches, these many different approaches, Mrs. Salsman has been able to Mrs. Salsman has been able to achieve a real breakthrough with achieve a real breakthrough with my son and teach him so much my son and teach him so much about the value of money, working, about the value of money, working, getting paid, spending and saving. getting paid, spending and saving. For a child with his disability to For a child with his disability to have made so much progress in have made so much progress in one school year could easily be one school year could easily be considered a miracle.considered a miracle.””

Five Steps for Starting Five Steps for Starting a Mini-Economya Mini-Economy

Step 1: Step 1: Design the Classroom MoneyDesign the Classroom Money

Step 2: Step 2: Decide How Students Will Decide How Students Will

Earn MoneyEarn Money

Classroom Jobs

Payment for Desired Behavior

Mini-Economy Businesses

Classroom JobsClassroom Jobs

Payment for Desired Payment for Desired BehaviorBehavior

Mini-Economy Mini-Economy BusinessesBusinesses

Step 3: Step 3: Determine What Items and Determine What Items and Privileges the Money Will Privileges the Money Will BuyBuy

Step 4: Step 4: Determine How to Distribute Determine How to Distribute Items and PrivilegesItems and Privileges

Classroom Store

Auction

Step 5: Step 5: Do It!Do It!

Expanding Your Expanding Your Mini-EconomyMini-Economy

Life NecessitiesLife Necessities

One simple, yet powerful way to One simple, yet powerful way to add realism to a mini-economy is add realism to a mini-economy is to require students to pay for to require students to pay for various “necessities of life.”various “necessities of life.”

BanksBanks A bank is a natural for the mini-economy.A bank is a natural for the mini-economy.

See the Mini-Economy Banking Program at See the Mini-Economy Banking Program at http://www.econed-in.org/mebp.asp

Insurance CompaniesInsurance Companies Insurance is one of the most popular Insurance is one of the most popular

aspects of the mini-economy.aspects of the mini-economy.

Government and TaxesGovernment and Taxes

Government and taxes are Government and taxes are aspects of the mini-economy aspects of the mini-economy that are easy to implement.that are easy to implement.

Real EstateReal Estate One of the easiest ways to add realism One of the easiest ways to add realism

and excitement into your mini-economy is and excitement into your mini-economy is by introducing the concepts of real estate by introducing the concepts of real estate and private contracts.and private contracts.

BusinessesBusinesses Many teachers report that Many teachers report that

mini-economy businesses are the most mini-economy businesses are the most rewarding and instructive aspect of rewarding and instructive aspect of their mini-economies.their mini-economies.

InvestmentsInvestments

Adding investments to the mini-economy Adding investments to the mini-economy creates much interest and enthusiasm, creates much interest and enthusiasm, and provide an excellent opportunity to and provide an excellent opportunity to use many basic math skills.use many basic math skills.

Exchange RatesExchange Rates

If there is another mini-economy in If there is another mini-economy in your school, it is easy to introduce your school, it is easy to introduce the concept of exchange rates.the concept of exchange rates.

Teaching Economics in Teaching Economics in the Mini-Economy the Mini-Economy

ClassroomClassroomThe mini-economy classroom provides a perfect setting for teaching students the basic economic concepts that are part of the social studies curriculum.

The Actual Classroom The Actual Classroom EnvironmentEnvironment

Economics is an integral part of the world Economics is an integral part of the world around us and permeates virtually all around us and permeates virtually all facets of life, including the elementary facets of life, including the elementary and middle school classroom.and middle school classroom.

Use Everyday Classroom Situations

Use Economics Vocabulary Whenever Possible

Sample:

The school secretary’s job is important to our school.

The school secretary provides a valuable service to our school.

Existing CurriculumExisting Curriculum

Economic concepts and themes Economic concepts and themes are found throughout the are found throughout the curriculum.curriculum.

Social Studies

Math

Language Arts

Economic Education Economic Education MaterialsMaterials

There are many excellent There are many excellent economic education materials economic education materials available to teachers.available to teachers.

Play Dough Economics

http://store.ncee.net/playdougheconomics.html

KidsEcon Posters

www.kidseconposters.comFocus: Economics Grade 3-5http://store.ncee.net/focus35.html

Questions?Questions?