Basic Economics

Basic Economics and Finance Lessons

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Welcome to our Basic Economics page, your ultimate resource for teaching essential economics and finance concepts to your students. We offer a wide range of educational materials, including lessons, worksheets, educational videos, interactive material, and other teaching resources.

Our lessons and worksheets provide clear explanations and practical examples that help simplify complex concepts. They cover key topics such as the time value of money, compound interest, opportunity cost, supply and demand, inflation, and many others. Our educational videos and interactive material offer an engaging and dynamic way to teach these concepts.

Our resources are designed to be accessible and relevant to real-life situations, making them ideal for students of all ages and backgrounds. By using our materials, you can help your students improve their real-world math skills and make informed decisions about their personal finances.

At Money Instructor, we believe that financial education is essential for everyone, and we are committed to providing educators with the tools they need to succeed. Whether you're a new teacher or an experienced educator, our materials can help you deliver high-quality lessons that engage and inspire your students.


Basic Economics Lessons

This material provides a foundation in basic economics and finance principles.


Lesson WHAT IS ECONOMICS?

What is Economics? Lesson Plan

An introduction to economics. Students learn the vocabulary of economics, what economics is, why we study it, and why it is important to our daily lives.


Lesson TIME VALUE OF MONEY

Time Value of Money - TVM

Time is Money! This lesson introduces students to a basic concept behind all types of investments, the Time Value of Money. Also introduces the concepts of Present Value and Future Value.

 

MAIN FUNCTIONS OF MONEY VIDEO LESSON

Main Functions of Money

Learn what is money and what are its four main functions. Money serves all these functions: it is a medium for exchange, store of value, unit of account, and standard for deferred payments. Instructional video lesson and worksheet.

 

Types of Money

What is money? Economists differentiate among several different types. Learn about the four main types including commodity money, representative money, fiat money, and bank money. Also learn why intrinsic value is important for understanding the types of money. Instructional video lesson and worksheet.

 

What is Currency?

What is currency? This lesson covers the concept of currency, its role in an economy as a medium of exchange and store of value, and different types of currency such as traditional currencies and newer digital currencies like Bitcoin. It also covers the foreign exchange market and how it determines the exchange rate between different currencies, as well as the factors that can affect the exchange rate, such as economic conditions, interest rates, and political events. Instructional video lesson and worksheet.


Lesson COMPOUND INTEREST

Compound Interest

A worksheet for a lesson in the concept of compound interest as it relates to the time value of money (TVM).

 

Lesson OPPORTUNITY COST

Opportunity Cost

We make many decisions every day. Should we go to work? Should we go shopping? In economics this is called opportunity cost.



Lesson SUPPLY AND DEMAND

Supply and Demand Introduction

A worksheet that introduces the concept of supply and demand.

 

Lesson LAW OF DEMAND

Law of Demand

Learn the law of demand, understand how it works, and create demand curves.


 

Lesson INFLATION INTRODUCTION

Inflation Introduction Lesson

A worksheet that introduces the concept of inflation.


WHAT IS CAUSING INFLATION?

What is causing Inflation? When will it end?

Why are prices going up for food, gas, and housing? Why are prices rising and who is it hurting? Why is everything so expensive? Learn about what is causing inflation. Includes video lesson and worksheet.

 

WHAT IS SLOWCESSION?

What is Slowcession? Slow Recession

The lesson is about understanding what is a slowcession. With a slowcession, or slow recession, economic growth slows down, but an economic downturn is avoided. With the Federal Reserve’s plan to raise interest rates hopefully helps lower inflation without causing a recession. Cheap oil prices, less inflation, and a strong housing market, are possible reasons for a slowsession. Includes video lesson and worksheet.

 

UNDERSTANDING THE DEBT CEILING

Understanding the Debt Ceiling and National Debt

The lesson explains the concept of the debt ceiling, or debt limit, and the national debt, their implications on the US government’s financial operations and the potential consequences of hitting the debt ceiling. It also discusses extraordinary measures and possible solutions to address the national debt, including raising the debt ceiling, cutting spending, increasing revenue and implementing structural reforms to entitlement programs.

 

Lesson PRESENT VALUE

Present Value

Learn about the important financial concept of present value. Present value tells us how much the prospect of future income is worth in today’s dollars.


Lesson SIMPLE INTEREST

Simple Interest

Understand what simple interest is, and how it is calculated.


Lesson COMPOUND INTEREST

Compound Interest

Understand what compound interest is, how it is calculated, and appreciate the impact it makes on loans and investments.


Lesson MORTGAGES AND INTEREST

Mortgages and Interest

Understand the concepts of mortgages and compound interest.


Lesson ANNUITIES AND PERPETUITIES

Annuities and Perpetuities

Understand, define, and calculate annuities and perpetuities.


Lesson NET PRESENT VALUE (NPV)

Net Present Value (NPV)

Understand the concept of net present value (NPV) and how it is used to determine the value of future cash in today's dollars.


Lesson NPV VERSUS OTHER INVESTMENT MODELS

NPV versus Other Investment Models

Compare other investment models to NPV including payback period, discounted payback, average return of book value, Internal Rate of Return (IRR), discounted cash flow, profitability index, and benefit-cost ratio.


Lesson MODERN PORTFOLIO THEORY

Modern Portfolio Theory (MPT)

Understand modern portfolio theory. Topics include Markowitz theory, efficient portfolio, CAPM, and the relationship between risk and reward.


Lesson INTRO TO RISK, RETURN, AND OPPORTUNITY COST OF CAPITAL

Intro to Risk, Return, and Opportunity Cost of Capital

Understand risk, return, and opportunity cost of capital. Topics include investment portfolio, variance, standard deviation, and portfolio risk.


Lesson USING NPV TO MAKE INVESTMENT DECISIONS

Using NPV to make Investment Decisions

Understand how to decide which items to include in the cash flow analysis after tax corporate cash flow, and how to utilize limited capital.


Lesson DEMAND AND MARGINAL UTILITY

Demand and Marginal Utility

Understand the concept of demand, marginal utility, and diminishing marginal utility.


Lesson GOODS AND SERVICES: KEY ECONOMIC QUESTIONS

Goods and Services: Key Economic Questions

Understand the three economic questions that all societies must answer.

 

WHAT IS THE FEDERAL RESERVE

What is the Federal Reserve?

What is the Fed and what does it do? In this lesson, students learn the role of the Fed, or Federal Reserve, which is the central bank of the United States, in managing the economy and preventing financial crises through monetary policy. It covers the various ways the Federal Reserve regulates financial institutions, influences interest rates, and stabilizes the economy.

 

 

Additional Lessons

Introduction: Economic Reasoning

Learn about macroeconomics, basic principles, and concepts.


 

 

Informational Articles

Macroeconomics: A General Overview

Learn about macroeconomics, basic principles, and concepts.

 

Microeconomics: A General Overview

Learn about microeconomics, and basic micro concepts.

 

The Evolution of Money

The two theories which explain what money is.

 


 

 

 

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