Two critical but often overlooked financial literacy concepts with entrepreneurial implications are decision making and opportunity cost: Financial education must include decision making skills. Teach students a simple but useful decision making process: 1.State the problem – What do I need to decide? 2.List the alternatives – What choices are there? 3.State the criteria – How will I judge? 4.Evaluate the alternatives – Use a numerical rating or a plus and minus system; this step is a cost/ benefit analysis. 5.Make a decision – What will work best with the resources I have? The critical sixth step is often left untaught: 6.Evaluate your decision – Did my decision work? What might have been better? What did I forget or overlook?
The activities support the Entrepreneurship Content Standards/Performance Indicators as follows: • A.18 Describe processes used to acquire adequate financial resources for venture creation/startup, • C.04 Explain opportunities for creating added value, • D.03 Use proper grammar and vocabulary, • D.08 Make oral presentations, • D.17 Follow directions, • G.03 Describe the sources of income (wages/salaries, interest, rent, dividends, transfer payments, etc.), • I.14 Determine market segments, • L.24 Select advertising media, and • L.29 Select sales/promotion options.
This resource is part of the Entrepreneurship Learning Activities collection.