Title: Describe the importance of the fundamental principles of economics on personal finances.
Course: Independent Living (22904-18) > Section: Managing Personal and Family Finances

Description should include

- examining fundamental principles of personal and family economics, including
  - determining wants vs. needs
  - considering scarcity (e.g., of time, space, money)
  - acknowledging opportunity costs and trade-offs
  - considering supply and demand
- applying economic principles to personal and family finances, including
  - distinguishing between gross and net pay and recognizing the effects of taxes
  - interpreting the opportunity costs of financial decisions
  - applying a decision-making process to personal financial choices
  - making a plan to align income with budget
- analyzing how economic conditions affect the attainment of personal goals.

Teacher Resources:

- Empowering Futures, One Dollar at a Time, Virginia Council on Economic Education
- Financial Fitness, FCCLA
- Teen Teach-In, Virginia Events Jump$tart! Financial Smarts for Students
- Invest in What's Next: Your Career and Education Pathways, Federal Reserve Education
- Financial Fitness, FCCLA

Process/Skill Questions:

Thinking

- What is the relationship between trade-offs and opportunity costs?

Communication

- How can scarcity affect one’s life?

Leadership

- What is the difference between a durable good and a non-durable good?

Management

- Why must a society face the choices about what, how, and for whom to produce?