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In- "cent" -ives

Grades: 
6, 7, 8
Subjects: 
Language Arts
Philanthropy
Social Studies
Keywords & Concepts: 
Character Education: Perseverance
Opportunity Cost

Through a discussion of impulse spending and opportunity cost, learners weigh the benefits of careful decisions and perseverance in reaching goals.

Duration 
PrintOne 20-minute lesson
Objectives 

The learner will:

  • define impulse spending, buyer's remorse, and opportunity cost.
Related Resources 

Instructions

Print

  1. Anticipatory Set:

    Some people set goals on New Year's Eve, called resolutions [firm decisions to act on a specific goal]. These resolutions frequently have to do with goals for fitness or the use of time or money. Ask what methods they think people use to keep resolutions. Talk about how this might be related to perseverance.

  2. Tell a story of impulse spending or invite the learners to tell stories of when they purchased something without forethought and later regretted it. Buyer's remorse is regretting a purchase after the fact.

  3. Explain that each decision has an opportunity cost. When you make a buying decision, you give up the next thing you could have done with that money. When you make a decision with how to spend your time, you give up the next best thing to do with your time. 

    Example: When I bought that box of candy impulsively, I gave up the opportunity to go to the movie I wanted to see. Missing the movie was the opportunity cost (the next best choice I gave up for the choice I made instead).

    Buyer's remorse may come from wishing you bought the next best thing. When setting a goal, thinking about opportunity cost can help you persevere and make a more careful decision about how to spend time or money.

  4. Tell the learners, "The perceived benefits and costs that we consider when making any decision are called incentives." Discuss what incentives encourage them to purchase or do something (It will be fun, taste good, make me look good).

  5. Goals can act as incentives that help us achieve something in the future like buying something or getting something done. Discuss why setting goals might help them make better decisions. Setting goals and sticking with them is an act of perseverance.

  6. The learners can reflect in writing on this question: "What goal would you like to set and how will you try to stick with it?"

Philanthropy Framework

  1. Strand PHIL.II Philanthropy and Civil Society
    1. Standard PCS 01. Self, citizenship, and society
      1. Benchmark MS.4 Describe the characteristics of someone who helps others.
    2. Standard PCS 02. Diverse Cultures
      1. Benchmark MS.2 Describe the importance of hearing all voices in a community and respecting their right to be heard.
      2. Benchmark MS.3 Give an example of how philanthropy can transcend cultures.
  2. Strand PHIL.III Philanthropy and the Individual
    1. Standard PI 01. Reasons for Individual Philanthropy
      1. Benchmark MS.3 Identify and give examples of stewardship in cultural traditions around the world.
      2. Benchmark MS.4 Identify and describe the actions of how citizens act for the common good.
      3. Benchmark MS.5 Describe the responsibility students have to act in the civil society sector to improve the common good.