Unit Plan: Creating a Classroom Economy

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Students are actively involved in a year-long study of economics where they earn credits and debits while maintaining a class bank and store. The unit is cross-curricular: students learn major-principles concepts, as well as use math skills on a daily basis. The students' potential to earn credits and debits (incentive!) also helps teachers facilitate classroom management.

While economics is considered part of the elementary social studies curriculum, textbooks and other social studies programs often neglect to incorporate economic instruction. The classroom economy can fill this void while serving as a fun way for students to act as both consumers and economists in a real world setting.

OBJECTIVE
Students will:

1. Participate in a classroom economy designed to mimic real world economic activity
2. Compare economic systems over time and history
3. Evaluate the importance of classroom jobs and daily responsibilities
4. Perform classroom jobs to earn daily salaries
5. Budget their money and balance their "checking accounts"
6. Use a decision making model to make consumer decisions
7. Reflect on the importance of saving money
8. Discover that every decision has an opportunity cost
9. Observe consumer behavior to understand the law of demand
10. Discover how inflation works and the effect it can have on the classroom economy
11. Study economic trends in the classroom economy

LESSONS FOR THIS UNIT
Lesson 1: Introducing the Classroom Economy
Lesson 2: Grand Opening
Lesson 3: Using the Class Store to Teach Economic Principles
Lesson 4: The Student Economist

REPRODUCIBLES
Kids Bank Online Activity (PDF)
Credit and Debit Log (PDF)
Money Design Template (PDF)
Blank Check Template (PDF)
Student Earnings Log (SWF)
Shopping at the Class Store (PDF)
Consumers Make Choices (PDF)
Spending vs. Saving (SWF)
What Is My Opportunity Cost? (PDF)
Economist Report (PDF)
Money Spent Log (PDF)
Student Earnings Graph (PDF)

CULMINATING ACTIVITY

By the end of the year, students have learned diverse economic concepts while participating in an economy that mimics activity in the real world. They have become responsible and well-informed consumers who make good decisions and are familiar with typical consumer behavior.

You may decide that they are now ready to become entrepreneurs. During the last month of school, I allow students to sell goods they have created themselves. Students can choose what to make and sell in the class store. They need to determine an appropriate price based on the amount of money classmates are willing to pay. Students can also market their products by creating advertisements on poster board or even filming commercials.

SUPPORTING BOOKS

Books and Materials for Teaching Economic Principles

In Beth Newingham's classroom reading, writing, and math workshops are at the heart of the learning that takes place every day. You can find her best ideas on Teaching Matters. She strives to weave technology into her curriculum and works hard to make lessons applicable to the real world. Making learning both engaging and purposeful is her ultimate goal with her students.

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