Basic Economics
Basic Economics and Finance Lessons
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.
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.
TIME VALUE OF MONEY
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
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.
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? 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.
COMPOUND INTEREST
A worksheet for a lesson in the concept of compound interest as it relates to the time value of money (TVM).
OPPORTUNITY COST
We make many decisions every day. Should we go to work? Should we go shopping? In economics this is called opportunity cost.
SUPPLY AND DEMAND
Supply and Demand Introduction
A worksheet that introduces the concept of supply and demand.
LAW OF DEMAND
Learn the law of demand, understand how it works, and create demand curves.
INFLATION INTRODUCTION
A worksheet that introduces the concept of inflation.
WHAT IS INFLATION?
What is Inflation? Inflation Explained Lesson
Students will learn about inflation, its causes, and its effects on daily life and finances. They will explore how inflation is measured and the role of governments and central banks in controlling it, along with practical strategies to protect their money from rising prices.
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.
WHAT IS STAGFLATION?
What Is Stagflation and How Does It Affect You
Students learn about stagflation, exploring its definition, causes, and the resulting effects such as stagnant growth and rising inflation on daily life and personal finances. The lesson discusses the personal impacts of stagflation, including increased living costs and reduced job opportunities, and provides strategies for managing finances through securing income, wise investing, and effective budgeting. This educational content is vital for understanding how economic conditions directly influence financial stability and lifestyle.
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.
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.
SIMPLE INTEREST
Understand what simple interest is, and how it is calculated.
COMPOUND INTEREST
Understand what compound interest is, how it is calculated, and appreciate the impact it makes on loans and investments.
MORTGAGES AND INTEREST
Understand the concepts of mortgages and compound interest.
ANNUITIES AND PERPETUITIES
Understand, define, and calculate annuities and perpetuities.
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.
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.
MODERN PORTFOLIO THEORY
Understand modern portfolio theory. Topics include Markowitz theory, efficient portfolio, CAPM, and the relationship between risk and reward.
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.
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.
DEMAND AND MARGINAL UTILITY
Understand the concept of demand, marginal utility, and diminishing marginal utility.
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 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.
JOBS AND THE ECONOMY
How the Job Market Slowdown, Unemployment, and Rate Cuts Impact You
Students will learn how the recent hiring slowdown and interest rate cuts impact job prospects, loans, and personal finances. The lesson explores how these economic changes influence career planning and provide practical tips for navigating financial decisions during uncertain times. It helps students stay informed about job market trends and protect their financial future.
ECONOMIC IMPACTS
Trump’s Tariffs Explained: Will Prices go Up?
Students learn how tariffs impact everyday expenses by raising the cost of imported goods. They explore why tariffs are implemented and how they can affect personal budgets. Through examples and discussions, students gain insight into the economic effects of tariffs on consumer choices.
Gulf of America? Why Trump Wants to Rename the Gulf of Mexico Lesson
Students learn about President-elect Donald Trump’s proposal to rename the Gulf of Mexico to the Gulf of America and its potential political, cultural, and economic impacts. They explore the Gulf's critical role in industries like fishing, oil, and shipping, as well as the historical and diplomatic challenges of altering its name. This discussion highlights the broader implications of redefining shared regions and how such changes reflect efforts to reshape America’s global influence.
Why Are Your Favorite Stores Closing? The Retail Collapse Explained Lesson
Students learn a lesson about why major retailers like Joann Fabrics, Bed Bath & Beyond, and Sears are closing, how debt and online shopping are changing the way businesses operate, and what store closures mean for consumers and the economy. They explore how these changes impact small businesses, job opportunities, and local communities while discussing ways brick-and-mortar stores can adapt to survive in a digital world.
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 two theories which explain what money is.
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