As we discussed in the introduction video to this series, deciding between needs and wants can be tough. Financial Literacy—Needs and Wants explains the difference between needs versus wants. But it goes further and describes what opportunity cost is. This will help your kids learn how to make decisions, not between needs and wants, but wants and more wants.

A need, as you now know, is something that is necessary to your survival. Food, water, and shelter are needs because we have to have those things in order to survive. Wants include way more things because there are lots of things in this world that we don't have to have to survive. Toys, games, books, subscriptions to stuff. While it may be hard to decide between a need and want, sometimes it's even harder to decide between two wants.

Opportunity cost relates to decisions between wants. It is basically the cost of missing out on the option you do not choose. The video offers an example in which Frankie Finance has to choose between a pair of rollerblades she has saved up for and going to the movies with her friends. The rollerblades cost more than she has, but there will be a sale to bring down the price to one she can afford.

If Frankie chooses the rollerblades, she will miss out on a movie night with her friends. If she chooses to go to the movie, she will not be able to afford the rollerblades, which will be on sale for one day only. If she doesn't buy them then, she will not be able to get them. There is an opportunity cost tied to each decision. One thing you can do to help you make decisions like this is to create a pros and cons list!

We hope you and your student(s) enjoyed learning about the difference between a need and a want! If you want even more information, head over to our website and download one of our many free lesson plans about financial literacy, full of activities, worksheets, and more!

https://learnbright.org/lesson....s/math/financial-lit
https://learnbright.org/lesson....s/math/introduction-

What you will learn in Financial Literacy—Needs and Wants:
0:00 Introduction
0:32 Difference between needs and wants
1:39 Opportunity costs
2:01 Example of opportunity cost in action
3:19 How to decide between options

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As we discussed in the introduction video to this series, making a budget to balance your finances is a great way to ensure you have money for the things you want. Financial Literacy—Making a Budget explains how to create a budget based on your income and expenses. This will help your kids learn how to use a spending plan in order to use their money wisely.

Budgeting is a great skill to have that will help you learn how to save for something you want to buy. A budget is a spending plan to based on your income and expenses. In other words, it estimates how much money your earn and spend over time. Expenses can be either fixed or variable. Fixed expenses are the same every time you have to pay them. Variable expenses, well, vary.

To make a budget, you have to look are how much money your earn or receive as gifts (income). Then you look at your expenses. Subtracting your expenses from your income gives you the amount of money you have left over to spend on something you want. You must be careful to watch out for unexpected expenses though, which can put a dent in that budge of yours!

We hope you and your student(s) enjoyed learning about the difference between a need and a want! If you want even more information, head over to our website and download one of our many free lesson plans about financial literacy, full of activities, worksheets, and more!

https://learnbright.org/lesson....s/math/financial-lit
https://learnbright.org/lesson....s/math/introduction-

What you will learn in Financial Literacy—Making a Budget:
0:00 Introduction
0:36 What is a budget?
1:34 How to make a budget—income
2:20 How to make a budget—fixed and variable expenses
3:40 Accounting for unexpected expenses and contingencies
4:41 Try it at home!

Thank you for watching and learning with us! We’re constantly releasing new content and videos, so click that “Subscribe” button and you’ll get notified.

Find and Follow Us Online:
Facebook: https://www.facebook.com/LearnBright/
Instagram: https://instagram.com/LearnBrightEducation
Pinterest: https://pinterest.com/LearnBrightEducation
YouTube: @LearnBright
Website: https://learnbright.org/

*Teachers and Parents! Did you know? In addition to these great videos, we have also created a library of high-quality and engaging lessons for your elementary aged student(s). Visit us and sign up for a free account, and you'll instantly have access to thousands of lesson plans, learning materials, teaching instructions, activities, and assignments that your kids will really enjoy! We hope to see you soon!

Browse our entire collection of Math lesson plans:
https://learnbright.org/lessons/?filter_subject=math

#budgeting
#financialliteracy
#financialliteracyforkids