Warm Up

1. Write the name of your favorite cereal on the front board :

2. On a piece of paper, answera) Why is that cereal your favoriteb) What is its advertisement

Pre-Assess Chapter 1

• Turn to page 45• Answer 1-16

Let’s Analyze

• Which factors most influence your choice in cereal?

• Profitable businesses go to great effort to research what consumers WANT and then provide it

• Why do you think businesses do this?

Today’s Objectives

• Describe– Values– Goals– Opportunity costs

• Explain– Need vs. Want

You’ve got the Power!

• Have you ever heard…“The customer is always right”

• A business cannot success without them!• YOU have the power to CHOOSE– What to buy– Where to buy it

• Knowing your values is a good place to start

Values

• Values are your principles (standards) by which you live

• When you list your values you are judging– What is right or wrong– Good or bad– Important or unimportant to you

• Example: wanting to spend time with your family and friends

Different types of values

In your notebook…1. Life values2. Work values3. Cultural values4. Social values5. Demographic values

Values CHANGE

• As you learn and grow• As a society– In the 1950’s women stayed home, today families

place a higher value on a mother’s contribution to the household income

• DO NOW: What are some of your values? – Make a list– Prioritize– Need an example? Next slide!

Examples of Values

• Family• Friendship• Education• Financial Success

Goals

• The things you want to accomplish in your life are GOALS

• They come from your values, needs, wants, hopes and dreams

• NEEDS: things you cannot live without• WANTS: things you would like to have but

could live without

With a PartnerNeeds Wants

Your life span

• Why do you think a person’s wants and needs change as he or she ages?

• Short term vs. long term goals– What do you want to do after you graduate– Long term career– Short term goals to reach that goal

• How are short and long term goals different from needs and wants?

Opportunity Costs

• Having a plan is a great way to reach your goals

• But…what about the things you have to give up?

• If you are a full time student, you will not have as much time to have a job and make money

• The income you give up while you’re in school is your OPPORTUNITY COST

• Opportunity cost is the value of your next best alternative whenever you make a choice

• Because different people value different things, your opportunity cost may not be the same as a friend’s

• The opportunity cost of buying a CD may be the baseball cap you also wanted but didn’t have enough money for both

• Every decision you make has an opportunity cost

Closure

1. You have just found $30!– How would you spend it?– What is your opportunity cost?

2. What is the opportunity cost of having a job after school?

3. What is the difference between a need and want?