Teller Elementary School: Challenge Project

Economics

The Challenge Project is an optional activity for students who want to extend their learning experiences, to work beyond the classroom requirements, and/or to explore alternative topics. Families may need to lend support, encouragement, and assistance at home. The Challenge Projects are organized by Ms. Bass, Teller’s GT Specialist.

1. Economics is the study of how people use resources. There are three kinds of resources:

natural resources (things that occur in nature)

human resources (people that work) capital resources (tools or equipment that

workers use)

When you go to the grocery store, Target, the bank, restaurant, or another business with a parent, make a chart showing the resources that you see being used. Here’s a partial example:

natural resources human resources capital resources

wood cashiers computers

fish, seafood waiter kitchen appliances

2. Read the Three Little Wolves and the Big Bad Pig by Eugene Trivizas. Discuss and identify (with an adult) the capital resources in the book. Then create a Top Ten List (ala David Letterman) of the most important capital resources in the school. Remember, number one is the most important!

3. Read The Giving Tree by Shel Silverstein. Develop a clever way to show both the goods and services that the tree provided to the boy / man.

Do one or more additional projects about economics.

3. Think about the resources used at school. Create a flip book showing the natural resources, human resources, and capital resources used at school. Do we use more of one kind of resource at school than the others? If so, why do you think that is?

School Resources

natural resourceshuman resourcescapital resources

4. Consider your family and the work that people in your family do. Do your parents provide a service or do they make a product? How do you earn money? Do you offer a service or make a product? OR Interview your classmates and ask them if their parents provide a service or make a product? Graph and analyze the results. What pattern(s) do you see?

5. Can you think of a specific business where both goods and services are provided? Try to give a number of examples.

6. Look through a newspaper or magazine and cut out 10 ads: five advertising a good and five advertising a service. Write a short paragraph discussing the difference between the two types of product for sale.

7. Read Lemonade for Sale by Stuart J. Murphy. If you can’t find the book, you can find it on YouTube: https://www.youtube.com/watch?v=Sc2TTXmJRZs Discuss with an adult the differences between an entrepreneur and a human resource.

8. Think of a business that you would like to begin that will make a profit. You can sell something that others would like to buy (lemonade, baked goods, art, scarves, stationary, etc.) or you can do work that others will pay you to do (babysitting, washing cars, mowing lawns, etc.). Be creative and think of something that will interest you!

As you think about your new business, be sure to consider who your customers will be and how they will know about your goods or services. What natural, human, and capital resources will you need? [Parents may loan you money for startup expenses, but should not pay for these. If they “float you a loan,” you must pay them back.]

Start your business, by asking an adult to help you set up an Excel spreadsheet so you can keep track of your expenses and your revenue (money earned). As your business begins, ask yourself if you making a profit or losing money? Brainstorm ways to have fewer expenses and greater revenues. Were your plans successful? If so, why? If not, why not? What is the most challenging aspect of starting a business and making a profit?

9. Profit or Loss? Although businesses charge for their goods and services, they also have to pay expenses, such as for raw materials, utilities, salaries, etc. For each of the scenarios below, determine if the business made a profit or lost money?

Mark’s Lawn Service charges $25 to mow a small lawn. Mark must pay $4.00 for gasoline and $12.00 to his workers for each lawn mown. How much profit does Mark make on each lawn mown?

Paul’s Pottery imports pots from Mexico. Paul pays $2.65 for each pot he buys. He must also pay $1.40 shipping

costs for each pot. A customer buys 8 of the pots for $7.89 each. How much profit does Paul make on the sale of the 8 pots?

Amy’s lemonade stand did not have many customers. Amy had expenses of $9.50 for lemonade mix, $7.25 for sugar, and $3.85 for cups. She sold 43 cups of lemonade for $.45 a cup. Did she have a profit or a loss? How much? How many more cups of lemonade would Amy have to sell to break even? To make a profit?

10. Read A Chair for my Mother by Vera Williams. Consider when you have been a consumer and when you’ve been a producer. Complete one or both of the attached sheets.

11. A budget is a plan that helps you determine how much money you have and how to plan ahead so you have money when you need it. Talk to an adult about budgets and/or locate a book (or book section) about budgeting. When you are done, talk to your parents about the challenges and choices that they face in budgeting for your family.

You have $250 to spend on any of the items on the Decisions, Decisions Cost Guide (see Ms. Bass for this page). However, you must buy at least one item from each category, as well as set aside money for savings. [You do not have to fill in every line on the budget sheet.] Once you are done, consider the following questions and answer them in a format of your choice.

What were your thoughts and feelings as you completed the budget? Was it harder or easier than you expected to stay within the budget? What were some of the items that you wanted to buy, but couldn’t

afford? How did you make your choices? Do you think that these challenges and choices are realistic to most

families?

12. Research taxes and be ready to explain or display the following:

Why do we pay taxes? Where does this money go? What does our tax money pay for?

What if taxpayers don’t agree with how tax money is spent? What if we didn’t pay taxes? Does everyone pay the same amount of tax? How is this figured? How do other countries pay for government services? Do their citizens

pay taxes, too?

13. Work with your teacher, your parents, or Ms. Bass to create an activity that will help your classmates understand and experience “supply and demand.” Make sure that you and your classmates are able to answer the following questions:

What factors influence consumers when they are making choices about buying goods or services?

What happens when there is more demand for a product or service than the supply can handle?

Why / How does scarcity cause the price of an item to increase? When have you been impacted by the supply and demand cycle?

14. Read The Day I Swapped my Dad for Two Goldfish by Dave McKean. Work with your teacher, your parents, or Ms. Bass to create an activity that will help your classmates understand and experience “bartering.” Make sure that you and your classmates are able to answer the following questions:

When bartering, what were the high demand items?

What were the items that were least wanted?

What did people do to get the high demand items?

Why do you think we use money instead of bartering?

What would happen if we bartered instead of using a standard currency?

15. Many people enjoy the game Monopoly. But what is a monopoly in the business world? Why is a monopoly a negative thing? How does that affect us, as consumers?

16. Can one person working alone make bookmarks as fast as several people working together? Try the assembly line investigation that follows.

17. Research microloans. With your parents, go to the website, www.kiva.org. Browse through the different loans. Select one loan you would contribute to IF you had $25 to lend. You do not need to loan money (but can if you wish). Either way, consider the following questions:

Who is the entrepreneur (the person trying to start and run the business) that you selected?

Where does he or she live? What is his or her business? What would the loan help pay for? How long does he or she have to pay the loan back? How do microloans help those in need, especially in poor countries?

18. Interdependence means that people in different parts of the world depend on each other for resources and goods. Look through products (clothing, shoes, foods, manufactured and/or electronic goods, etc.) at home and see where they were made. Using a world map, label the products and where they were made. What patterns do you notice?

19. What are the advantages and disadvantages of buying products that are made outside of the United States? And what are the advantages and disadvantages of buying products that are made in the United States? How does this type of interdependence impact the U.S. economy? The economies of other countries?

20. Pick a country that interests you and make a list of the products that it imports (brings in) and exports (sends out).

21. There are four primary types of economic systems in the world: traditional, command, market, and mixed. Create a way to detail each economic system, and its strengths and weaknesses. Where in the world do we see each economic system?

22. It’s important to understand how different parts of the world function economically, as economies are some of the strongest forces when it comes to balancing political power, instigating war, and delivering a high (or low) quality of life to the people it serves. Research how economic systems have driven politics, war, revolutions, and quality of life in specific countries.

23. What factors explain the economic contrast (difference) between the richest countries and the poorest countries in the world?

24. If you are still interested, examine the difference between microeconomics and macroeconomics.

25. Investigate how the Stock Market works by doing some research. With an adult, register and play the Stock Market Game at http://registration.smgww.org/#/find-programs

26. Read a book from the book list (see Ms. Bass) and discuss the economic ideas that you read about with a parent or teacher.

27. Create your own project that relates to economics.

Describe a time when you saved money for something you really wanted.

Describe a time when you spent money on something you really wanted.

How does the price of an item affect your decision as a consumer?

Describe a time when you wanted to buy two things, but only had enough money for one item. What did you buy? What was your opportunity cost (loss)?

I’m a Consumer!

I’m a Producer!Describe a time when you decided to sell something. Tell whether you sold a good or a service.

How did you find buyers or customers?

What were some of your expenses and how did you pay for them?

How did you decide how to price your goods or services?

Assembly Line Experiment

Directions: One person will work alone and do all of the steps below to make 5 bookmarks, while 5 people will work together to make the same number of bookmarks. Each of the five people will only do one step of the assembly line process listed below. Who do you think will finish faster?

Materials: red paper, white paper, green paper, blue paper, glue, scissors

Step One: Cut five strips from the white paper. Each strip must measure 2” x 5”.

Step Two: Cut five strips from the red paper. Each strip must measure 1” x 4”.

Step Three: Cut five strips from the blue paper. Each strip must measure 1” x 4”.

Step Four: Cut five small stars from the green paper.

Step Five: Glue one red strip and one blue strip on each piece of white paper. Glue one small star at the top of each piece of white paper.

Books about Money/Economics

Age 3 and up

Paddy's Pay Day by Alexandra Day. Paddy is a dog who does circus acts. On his day off, he goes shopping. You can tell what's important to Paddy by what he buys with the money he earned.

Tom And Annie Go Shopping by Barry Smith. Tom and Annie go shopping for a lot of items. This book asks you to find the items on the shelves. Shopping isn't as easy as it looks.

Age 4 and up

The Berenstain Bears & Mama's New Job by Stan and Jan Berenstain. When Mama becomes a "business bear," the way work gets done around the house changes. Other members of the Bear family discover how to help more.

The Berenstain Bears Get The Gimmes by Jan and Stan Berenstain. Can Mama and Papa Bear find a way to keep the cubs from begging at the store?

The Berenstain Bears' Trouble With Money by Jan and Stan Berenstain. Brother and sister Bear spend money as soon as they get it. Mama and Papa Bear want the cubs to understand that there is more to know about money than just how to spend it.

Carl Goes Shopping by Alexandra Day. A dog named Carl goes to the store with his master. He watches the baby while the master goes shopping. Carl cares for the baby as they explore different parts of the store.

Curious George at the Laundromat by Margret Rey. George tries to use the washing machine and makes a mess.

Fancy Nancy and the Fabulous Fashion Boutique by Jane O'Connor. Fancy Nancy, a girl who enjoys turning even the most ordinary events into fabulous occasions, figures out how to earn money and spend it.

How I Learned Geography by Uri Shulevitz. A boy, along with his family, is forced to flee their country and start over in a new country (present-day Kazakhstan).

Just Shopping With Mom by Mercer Mayer. Mom shops with three youngsters. One has trouble accepting "no" for an answer.

The Money We'll Save by Brock Cole. A 19th century family has to get creative about keeping costs down, including raising a turkey in their small home. (Ages 4 to 8)

Mrs. Pirate by Nick Sharratt. Mrs. Pirate goes shopping. She buys items for the ship. This is a great book for children who are just starting to read.

My First Job by Julia Allen. A small boy is asked to perform his first household jobs. Dimes and feelings of success are his rewards.

Ox-Cart Man by Donald Hall. A farm family use their time and energy and talents to grow or make almost everything they need. They also grow or make extra things to take to market and sell.

Sheep in a Shop by Nancy Shaw. Some sheep go shopping for a birthday gift. They find out they do not have enough money to pay for it. They decided to solve their problem by trading.

The Penny Pot by Stuart J. MurphyJessie would like to have her face painted at the school fair, but she just bought an ice-cream cone and has only 39 cents left. Will the penny pot help her achieve her financial goal?

Working Cotton by Shirley Anne Wilson. Have you ever wondered what it's like to pick cotton? This book is about a day in the life of a family who work together in the cotton fields.

Age 5 and up

A Bargain for Frances by Russell Hoban. Frances saves and saves for a china tea set. Her friend Thelma tricks her into buying an old plastic tea set. Thelma says there are no "backsies" on the bargain. Frances finds a way to get what she really wants.

A Quarter from the Tooth Fairy by Caren Holtzman. A boy tries to figure out how to spend the money he got from the tooth fairy. This book has notes in the front for adults and activities in the back for kids.

Alexander, Who Used To Be Rich Last Sunday by Judith Viorst. Alexander started the week as a rich young man. There are so many things he could do with a dollar. The money begins to slip away.

Apple Picking Time by Michele Benoit Slawson. All the townspeople work in the orchards at harvest time. Anna sets a goal to pick a whole basket of apples herself.

Brothers by Florence B. Freedman. Two brothers inherit their father's land and split it evenly. Find out how they make their father's wish come true.

Charlie Needs a Cloak by Tomie de Paola.

The Doorbell Rang by Pat Hutchins.

Frank and Ernest Play Ball by Alexandra Day.

The Goat in the Rug by Charles Blood and Martin Link.

Henry Reed, Inc. by Keith Robertson.

Henry Reed’s Baby-Sitting Service by Keith Robertson.

How The Second Grade Got $8,205.50 To Visit The Statue Of Liberty by Nathan Zimelman. The second grade class finds out that earning money for a big trip is not as easy as it looks.

Jalapeno Bagels by Natasha Wing.

Little Nino’s Pizzeria by Karen Barbour.

The Lorax by Sr. Seuss.

Not So Fast Songololo by Niki Daly. A young boy goes with his grandmother to the busy city. He helps her do her shopping. Before they leave, she gets him a nice surprise.

Pancakes, Pancakes! by Eric Carle.

Something Special for Me by Vera B. Williams. Rosa can't make up her mind. After a long day of shopping, she finally finds the gift she wants.

The Gold Coin by Alma F. Ada. Atheneum, 1991. This is a picture book based on a Spanish folk tale. Juan is a thief who wants to steal Doña Josefa's gold coin. As he travels to find her, he meets farmers and villagers who need his help with their chores. By the times he finds Doña Josefa, he has found another type of treasure. Find out what treasure Juan finds.

The Purse by Kathy Caple. Katie loves the noise her savings make in her Band-Aid box. She spends her savings on a new purse and throws away her Band-Aid box. Now she has no noise and no money.

Those Shoes by Maribeth Boelts. This book features a young boy learning the difference between needs and wants with a pair of shoes.

Tight Times by Barbara Shook Hazen. David learns about "tight times" and making hard decisions.

Tony’s Bread by Tomie de Paola.

The Tortilla Factory by Gary Paulsen.

The Wonderful Pigs of Jillian Jiggs by Phoebe Gilman.

Uncle Jed’s Barbershop by Margaret King Mitchell.

Age 6 and up

Amelia Bedelia Means Business by Herman Parish. The adored (and often befuddled) heroine figures out how to earn money.

A Chair for My Mother by Vera B. Williams. A family loses all their furniture in a fire. They set a goal to buy a chair for mother. Find out how the family, neighbors and friends work together for success.

A Job for Jenny Archer by Ellen Conford. Jenny wants to buy her Mom a fur coat. She tries many ways to earn money. Instead of a coat, Jenny finds the perfect gift in a most unlikely place.

Arthur's Pet Business by Marc Brown. Arthur wants a pet. His parents doubt he can take care of one. Arthur starts a pet business to prove his parents wrong.

Bea and Mr. Jones by Amy Schwarz. Bea and her father switch places. He goes to school. She goes to work.

Ben Goes Into Business by Marilyn Hirsch. A boy in the early 1900's makes 60 cents with a 10 cent investment at Coney Island.

The Cinnamon Hen's Autumn Day by Sandra Dutton. Is it more fun to rake your own leaves or have Mr. Rabbit's lawn service do it for you?

Erandi's Braids by Antonio Hernández Madrigal. Erandi's mother needs a new fishing net and also wants to buy Erandi her birthday gift, but is unable to due to their limited income. Erandi recognizes that her braids are valuable and makes a decision.

The Get Rich Quick Club by Dan Gutman.

The Gift by Aliana Brodmann. A young girl cannot decide what to buy with her Hanukkah money. Her decision is touching and surprising.

Isabel's Car Wash by Shelia Bair. Isabel decides to start a car wash business so she can purchase The Nelly Longhair doll, which is on sale at Murphy's Toys for ten dollars.

Jerome the Babysitter by Eileen Christelow. Jerome goes on his first baby-sitting job. The kids play tricks on him. Jerome is surprised when he gets them all to bed.

The Lemonade War series by Jacqueline Davies

Leo and Emily's Zoo by Franz Brandenberg Leo and Emily set up their own zoo. They make people pay to get in. Things don't go well. See who helps them out.

My Rows and Piles of Coins by Tololwa M. Mollel. Saruni saves money he receives from helping his mother work in the marketplace. His goal is to save enough money to buy a bicycle, so that he can better help his mother carry food to the marketplace. He works and saves his money for a long time.

No Time for Christmas by Judy Delton. Two friends get jobs to buy each other Christmas presents. One works nights and the other works days. They don't see each other anymore.

Pedrito's Day by Luis Garay. Pedrito works to make money to buy a bicycle to help his mother at the marketplace. He helps his aunt with work, but makes a mistake and loses her money. He then finds a way to fix his mistake.

Something Good by Robert Munsch. Annick Press Ltd., 1990. Tyya tries and tries to get her father to buy "something good" at the grocery store. After some trouble, Tyya's father buys her for $29.95.

When Times are Tough by Yanitzia Canetti. A little boy learns why he can't have more new toys or go out to restaurants more.

Yard Sale by James Stevenson.The characters in this book sell one another all sorts of items at the local yard sale. Unfortunately money isn’t there only motivation.

Age 7 and up

An Island Called Liberty by Joseph Specht.

Beetles Lightly Toasted by Phyllis Reynolds Naylor.

The Chocolate Touch by Patrick Skene Catling.

Max Malone Makes a Million by Charlotte Herman.

The Terrible Thing that Happened at our House by Marge Blaine.

Age 8 and up

Becoming Naomi Leon by Pam Munoz Ryan.

A young girl deals with multiple hardships, including a very tight budget.

Chicken Sunday by Patricia Polacco. To thank old Eula for her wonderful chicken dinners, the children sell decorated eggs and buy her a beautiful Easter hat.

Hothead by Cal Ripken Jr. The protagonist, whose father was recently laid off, has to learn about anger management, both at home and on the field.

How to Steal a Dog by Barbara O'Connor. This book, which features a homeless child, offers a valuable lesson on hardship and ethics, and it does so with humor.

The Rag Coat by Lauren A. Mills. Minna proudly wears her new coat of clothing scraps to school, where the other children laugh at her until she tells them the stories behind the scraps.

Rock, Brock, and the Savings Shock by Shelia Bair.Twin brothers accept a savings challenge proposed by their grandfather.

Where the Mountain Meets the Moon by Grace Lin. Chinese folklore inspires this story about a girl who tries to change her family's fortune.

Age 9 and up

The Adventures of Tom Sawyer by Mark Twain. In the second chapter, Tom gets out of the boring job of whitewashing the fence. He finds a way to get every boy in town to do it for him.

All the Money in the World by Bill Brittain. A young boy's wish for all the money in the world comes true. The boy finds out that having all the money in the world isn't as fun as he thought.

The Bell Bandit by Jacqueline Davies.

The Beloved Dearly by Doug Cooney.

Cally’s Enterprise by Claudia Mills.

Homer Price by Robert McCloskey.

Jefferson by Mary Frances Shura. Jefferson's family doesn't have enough money to give him a birthday party. The neighborhood kids earn money for a party.

Lawn Boy by Gary Paulsen. An ordinary preteen with an old riding lawn mower makes the dizzying ascent up the financial ladder so he can buy a new inner tube for his bike.

Lyddie by Katherine Paterson.In the 1840's a farm girl goes to the city to get a factory job. She works hard to earn money to pay off the debt on the family farm.

Lunch Money by Andrew Clements.

The Mighty Miss Malone by Christopher Paul Curtis. An African American family in Gary, Ind. deals with the tough economy of the Great Depression in the 1930s.

Not for a Billion Gazillion Dollars by Paula Danziger.Matthew embarks upon a frenzy of fundraising after his parents refuse to buy him the nifty computer program he wants.

Project Wheels by Jacqueline Turner Banks. Angela and her friends raise money. They want to help a classmate buy a wheelchair. Angela begins to see that she and her friends are growing-up.

The Richest Kids in Town by Pet Kehret.

Striker Jones: Elementary Economics for Elementary Detectives by Maggie M. Larche.

Tarantula Shoes by Tom Birdseye. After working odd jobs, Ryan decides to showcase his pet tarantula to earn enough money to buy expensive basketball shoes.

The Trading Game by Alfred Slote.

Tybee Trimble's Hard Times by Lila Perl. Tybee wants to go to the circus, but there's no extra money. Should she go alone if she earns the money for a ticket?

Age 10 and up

Blue Denim Blues by Anne W. Smith. Shy Janet is good with children. She gets a job in day care. She learns about child abuse and overcomes her shyness.

Finders, Keepers? by Elizabeth Crary. What would you do if you found something? Finders of lost goods have choices.

First Things First by Kristi D. Holl. Shelly's mom and dad can't pay for summer camp this year. Shelly spends her summer earning money. She finds out what is important to her.

Gopher, Tanker and the Admiral by Shirley Climo. Gopher wants to earn money to buy a bike. He decides to baby-sit for a crabby neighbor who has a broken leg. Together they solve a mystery.

How to Get Fabulously Rich by Thomas Rockwell. Billy wins a lot of money. Everyone he knows wants some of the money. He wonders if winning was worth it.

Kid Power by Susan Beth Pfeffer. Janice has a summer business doing odd jobs. She ends up with more jobs than she can handle. She hires other kids to work for her.

Kid Power Strikes Back by Susan Beth Pfeffer. Janice's summer business ends when school starts. She begins to miss the money she made. Find out what she does.

Mall Mania by Betsy Haynes. Beth borrows a friend's credit card and goes on a shopping spree at the mall. She gets deeply into debt and must find a way out.

Okay for Now by Gary D. Schmidt. A young boy has to learn how to rise above a series of adverse events, including the financial troubles of his family.

Oliver Dibbs to the Rescue by Barbara Steiner. Oliver and his brother think about ways to earn money. They want to use the money to help protect animals.

The Toothpaste Millionaire by Jean Merrill. Rufus makes his own toothpaste. He starts selling it and makes money. His friends help him make his business something great.

Age 11 and up

Jason and the Money Tree by Sonia Levitan. Jason plants a ten dollar bill. It grows into a money tree. He gets into some situations that help him learn about life.

Age 12 and up

The Not-So-Great Depression by Amy Goldman Koss. A teenage girl has to deal with a major change after her mom gets laid off.