Math Lesson

Lesson Plan Title:

Alexander, Who Used to Be Rich Last Sunday: Understanding Opportunity Costs

Grade Level:2, 3, or 6th

Duration: three 50-minute class periods

Student Goal:

To understand that there is an opportunity cost to every economic decision and that these costs come as a result of limited resources.

Student Objectives

Students will:

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Identify "opportunity costs" in the story and in their own lives.

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Create an opportunity costs bar graph as a whole class.

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Complete a table of personal spending and savings information.

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Write an original story about how they spent and saved their allowance and what they gave up or their "opportunity costs" in order to reach their goals.

Materials:

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a copy of Alexander, Who Used to Be Rich Last Sunday, by Judith Viorst

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chart paper

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markers

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overhead projector

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transparency

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student handout: How I Spent & Saved My Allowance (included). This was provided by the teacher in which I was doing my participant observations with.

Set Up and Prepare:

1.

Use the book Alexander, Who Used to Be Rich Last Sunday, by Judith Viorst.

2.

Write the definition of the term "opportunity cost" on a sheet of chart paper and display for the class:

Opportunity Cost: what you give up when you decide to do or buy something

3.

Draw a bar graph on a transparency. Write the title "Opportunity Costs for a College Education" across the top. Label the horizontal axis "Opportunity Costs." Label the vertical axis "Number of Students."

4.

Print out copies of the student handout "How I Spent & Saved My Money" for each student to take home.

Directions: PART I:

Step 1:

Share with students a story about a time when you did not buy something you really wanted so that you could use or save the money for something more important. For example, maybe you didn't go on a vacation so you could save the money for a car you need to buy. Explain that what you gave up is called an "opportunity cost." Direct students' attention to the definition of "opportunity cost" displayed on the chart paper.

Step 2:

Ask students to share stories from their own lives in which they gave up something to get something else, or to save for something else that they want more. Have them identify their opportunity costs. Ask students why they think it is hard to save money. Encourage students to share ideas about how to save money. Jot their ideas on chart paper.

Step 3:

Show students the cover of of Alexander, Who Used to Be Rich Last Sunday. Read the title and author's name aloud. Tell students that this is a story about a little boy named Alexander who receives $1.00 from his grandparents. Instead of saving his money for something he really wants, he ends up spending it on silly things. Explain that Alexander is the youngest of three, and unlike his older brothers, he doesn't understand about saving his money. Ask students if they have younger siblings like Alexander. Or, were they like Alexander when they were younger.

Step 4:

Read the book aloud. As you read, invite students to keep track of what Alexander spends his money on. To do this, you may want to create a table on the chalkboard. Each time he spends money, students can volunteer to go up to the board to write down what Alexander bought and what it cost. At the end of the story, invite students to add up the cost of each item to see how much he spent. Encourage students to explain whether they think Alexander spent his money wisely.

Step 5:

Check students' comprehension Ð'-- especially the economic concept of opportunity cost Ð'-- by leading a class discussion. Use these guiding questions to prompt the discussion:

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Based on Alexander's behavior throughout the story, why do you think his brothers have more money than him at the beginning of the story? (Alexander is not good at saving money.)

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Why do you think Alexander has a more difficult time saving money than his brothers? (He's younger and doesn't know better yet.)

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What does Alexander's father tell