Title: Describe the importance of the fundamental principles of economics on personal finances.
Course: Independent Living (22904-36) > Section: Managing Personal and Family Finances

Description should include

- examining fundamental principles of personal and family economics, including wants vs. needs, scarcity (e.g., of time, space, money), opportunity costs/trade-offs, and supply and demand
- applying economic principles to personal and family finances, including
  - distinguishing between gross and net pay and recognizing the effect of taxes
  - explaining how limited personal financial resources affect the choices people make
  - interpreting the opportunity costs of financial decisions
  - applying a decision-making process to personal financial choices
- analyzing how economic conditions affect the attainment of personal income and goals.

Process/Skill Questions:

Thinking

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

Communication

- How does scarcity affect your 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?

Teacher Resources:

- Educator Toolkit for 2011 National Financial Capability Challenge, U.S. Department of Education (https://www.ed.gov/category/keyword/educator-toolkit-2011-national-financial-capability-challenge)
- Virginia Council on Economic Education (https://vcee.org/)
- Virginia Jump$tart Coalition for Personal Financial Literacy (https://www.jumpstart.org/who-we-are/states/virginia/)