A different kind of institution, clearly defined and enforced property rights, is essential to a market economy. Money makes it easier to trade, borrow, save, invest, and compare the value of goods and services. Have students compare the video version to the Web news story. Have students consult local banks or other resources to learn about compound interest and how it works. You might invite a local banker to explain the different kinds of interest one can earn on savings, and how teens benefit from saving money.
Teens can learn to manage their money by creating a budget worksheet.
Some students don't know where to start when it comes to creating a budget or personal financial plan, because they don't keep track of their income and expenses. Direct students to list their predicted and actual daily income and expenses, then add up the totals at the end of the two-week period. They should also track whether or not their estimates were over or under their expectations, and by how much. Discuss what students learned by monitoring their money and how this could benefit them when setting up a long-term budget or financial plan. Download a compound interest table , or use one found in an economics textbook.