Students learn what a payday loan is and the high cost involved in using such a loan. They calculate an annual percentage rate (APR) on a short-term loan and see why comparing loans using APR is more informative than simply by comparing interest rates.

Students learn what a payday loan is and the high cost involved in using such a loan. They calculate an annual percentage rate (APR) on a short-term loan and see why comparing loans using APR is more informative than simply by comparing interest rates.

Students review the elements of a contract. They discuss the characteristics of rent-to-own contracts and compare the cost of those contracts with the outright purchase of goods.

Students review the elements of a contract. They discuss the characteristics of rent-to-own contracts and compare the cost of those contracts with the outright purchase of goods.

In this module, students use their knowledge of the production possibilities curve to determine how specialization in production can yield greater global consumption.

Specifically, Andy and Jack grow potatoes and strawberries on their islands, Los Andeles and Jackramento. When trying to find the mix of potato and strawberry production that will satisfy the islanders’ wants, they happen upon a solution that provides greater strawberry and potato consumption – specialization and trade.

In this module, students are introduced to absolute advantage, the ability to produce more of a good or service than another producer using the same amount of resources as that producer.

The superhero Jack of All Trades recognizes that although he has the absolute advantage in many tasks, it doesn’t mean he should do all tasks, as Jack explains to mortal, Andy.

From this basic concept, students can move toward an understanding of the benefits of trade and comparative advantage.

In this module, students learn that economies can experience greater consumption through specialization and trade. However, the price must be right for trade to occur. So, students also ascertain the terms of trade, a condition where trade can only benefit both parties when the price of the good is higher than the exporter’s opportunity cost and lower than the importer’s opportunity cost.

Specifically, Jack and Andy work out the terms of trading potatoes and strawberries between their islands by comparing their opportunity costs of producing those goods.

In this module, students learn that even when absolute advantage exists, two parties can still benefit from trading, if they do so according to their comparative advantage. Miss Information tries to persuade Andy that his new car repair and snow removal business is doomed to failure because Jack has the absolute advantage in both tasks. However, Jack dispels Miss Information’s misinformation by suggesting they work together and exploit their comparative advantage.
Miss Information tries to persuade Andy that his new car repair and snow removal business is doomed to failure because Jack has the absolute advantage in both tasks. However, Jack dispels Miss Information’s misinformation by suggesting they work together and exploit their comparative advantage.

Miss Information tries to persuade Andy that his new car repair and snow removal business is doomed to failure because Jack has the absolute advantage in both tasks. However, Jack dispels Miss Information’s misinformation by suggesting they work together and exploit their comparative advantage.

In this module, students learn about the production possibilities curve, a graphic representation of output combinations that can be produced given an economy’s available resources and technology. With their new-found wealth, Andy and Jack have acquired islands, Los Andeles and Jackramento, giving Jack the perfect opportunity to teach Jack about production possibilities, opportunity cost, and the efficiencies of trade according to comparative advantage.

Aggregate demand, short-run aggregate supply, and long-run aggregate supply come together on one of the most notable models in macroeconomics. This module will teach students how positive and negative demand shocks cause real gross domestic product, price level, and unemployment changes in an economy. These changes can take an economy from equilibrium to disequilibrium, leading to a recession or an inflationary gap. At this point, students should already understand how these individual parts of the model work: aggregate demand (AD), short-run aggregate supply (SRAS), and long-run aggregate supply (LRAS)

In this module, students learn about market equilibrium.

Prices for most goods and services are determined in markets by what economists call supply and demand. This module uses a fictitious chocolate market to help students better understand how supply and demand work together to determine prices.

NOTE: This module assumes that your students already understand the economic concepts of demand and supply. If your students do not have a deep understanding of demand and supply, please assign the EconLowdown Demand and Supply modules first.

When unemployment is persistently high, government may enact policies to bring it down; so, unemployment statistics matter. Students learn how these data are collected and how unemployment is measured in this short module.

In this short overview of the Federal Reserve System, students will get acquainted with the major roles and responsibilities of the central bank. It is a module that is designed primarily for those who are preparing a trip to the Federal Reserve Bank of Chicago (or another regional Federal Reserve location). It could also serve as a primer for students just being introduced to the Fed in various contexts.

Inflation, unemployment, recession, economic growth?these economic concepts affect people in very real ways. In this module containing three interactive, thought-provoking lessons, students will learn about monetary policy, the avenue by which the Federal Reserve System attempts to influence the economy. Four other modules that would further students understanding of related content are GDP and Pizza, The Story of Unemployment, The Great Inflation, and Fiscal Policy.

We are faced with the need to make decisions, both big and small, on a daily basis. The earlier young people learn how to make a good decision, the better their decisionmaking skills will be. In this short module, your students will read and listen to a story about Ella, who has decisions to make. While most of her decisions are easy, she runs across a hard one and employs a decisionmaking tool to solve her problem.

This module introduces opportunity cost, a fundamental concept in economics. An understanding of opportunity cost contributes to informed decision making at the personal and societal levels.

What is interest? Why are most people paying and earning interest at the same time? How are interest and opportunity cost related? Making informed borrowing, saving, and lending decisions requires a basic understanding of interest. This module will help you better understand what interest is and why borrowers pay interest and lenders/savers receive interest.

What is the future value of an asset or cash at a specified date in the future that is equal in value to a specified amount today? You can use a formula to determine that—the future value formula: FV=PV (1+i)n. In this module you will learn more than the formula. You will learn why knowing the future value is such an important concept to understand when planning your financial future.

What is present value? There’s a formula you can use to determine present value, but why does present value matter? Well, suppose that you want to have a certain amount of money in the future—say $25,000 to make a down payment on a home. How much do you have to put away today to achieve that goal? Or, what if you win the lottery—do you take a lump sum payment today or equal payments over the next 26 years? Present value is a tool to help you make choices like these.

A “Standard” Personal Finance Curriculum is designed as a high school personal finance course. It is divided into seven units that address the six National Standards for Financial Literacy and a standard on decisionmaking, respectively. Each unit includes a description, talking points, and links to recommended resources for teaching the given standard, along with a selection of supplemental resources. The talking points are introductory comments and information about the content for each unit. Recommended resources include lessons, videos, and online modules. Thus, the curriculum is designed with flexibility for teachers to select the individual resources that best meet the needs of their classes. The curriculum also includes a glossary of terms and a matrix that aligns all of the recommended and supplemental resources with the national standards.