The Latest from VEA

By Alice Stocks

To start on a strong note, I like to teach a lesson on opportunity cost on the first day of class. I ask, “What would you be doing if you had not come to school?” As students respond, I tell them that what they could have been doing is called “opportunity cost,” which becomes their first vocabulary word. I explain that whatever they gave up was the opportunity cost, which is the next best alternative, and that what they would have done was not as important as an education. I always get pushback from a few: some tell me they come to school because they had no choice, others say their parents made them come, while still others say it’s the law. I explain they always have a choice even if they do not like the options.

We then look at the six-step process to the economic way of thinking:

1. All choices involve costs: The cost of any choice is what you give up to get it.
2. People respond to incentives in predictable ways: Incentives are factors that motivate and influence human behavior. People are likely to change their behavior when incentives change.
3. Economic systems influence choices and incentives: The rules and structures of economic systems shape the choices and incentives available to individuals and businesses.
4. Voluntary trade creates wealth: People trade because they expect to gain something from the exchange.
5. Economic decisions have future consequences.

Understanding potential outcomes helps in making better choices, and asking, “What would you be doing if you had not come to school?” gives students a quick introduction to the concept of cost-benefit analysis. This allows them to see how quickly they can weigh potential benefits and costs of different choices, and how it helps them to reach a rational decision with long-term implications. I show them “If I come to school,” I will gain knowledge and skills, receive better job opportunities, and earn a higher income, all while socializing with my friends. Not attending school also has consequences: “I could be placed on punishment, have my privileges revoked, and fail. This would not allow me to graduate and without a high school diploma I would be unable to get a job that will support my future of living independently.”

Just like that, I have their attention. This approach not only enhances their understanding but also empowers them to make informed financial decisions. It is at this point that I say, “All decisions are economic decisions, not just monetary ones.”

To extend their knowledge, I encourage students to go home and share what they’re learning in class with the adults in their lives. My hope is that this will also help the adults who may be struggling with their own finances. When I first started teaching the course, a student was excited to share that she taught her mother how to write a check and how to use the checkbook register. Her mother had never written a check and did not have a checking account prior to the check-writing lesson, but she established an account after talking with her daughter. In addition, one of my seniors was convinced she was banking with 7-Eleven because that is where she cashed her checks. It took me the entire year to convince her to establish a checking account. Then, one day before the end of the year, she came to me and showed me her checkbook. I was so proud, and I told her as much. It was very rewarding knowing that I played a part in her financial growth and maturity.

Practical, real-world skills are invaluable assets that empower students to handle unexpected situations with confidence and efficiency. Two of my students from different classes got into a fender-bender in the student parking lot after we completed the insurance unit, and because they knew exactly what needed to be done, they handled the situation like seasoned professionals. I was very impressed and praised them for applying what they’d learned. Another student knew what to do when she and her family returned from a weekend getaway to find that a pipe had burst and flooded the inside of their home. Her parents were amazed that she knew what steps to take and what to tell the insurance company to resolve the problem.

Over the years, I have had students come back and tell me how much the Economics and Personal Finance class has helped them. One student called me from Hawaii to let me know that she had joined the Army. When I asked her what job she chose, she said, very matter-of-factly, that she had picked finance. “I chose what you taught me,” she said. Another student was inspired by the class to go to work for a bank, and yet another, spurred by what he had learned, majored in economics in college and now he works for the federal government in Washington, DC.

The value of understanding economics and personal finance for students cannot be underestimated. By equipping them with knowledge and skills to make sound financial decisions, they can avoid common pitfalls such as overspending, debt accumulation, and financial mismanagement. By instilling good financial habits, students are empowered to take control of their financial futures and build a strong foundation for economic success.

I can confidently say that choosing to teach Economics and Personal Finance is one of the most impactful decisions of my career. I believe I have not only influenced my students but also positively affected many families—and ultimately, isn’t that the true purpose of our profession?

Alice Stocks, a member of the Education Association of Norfolk, teaches at Granby High School. She was named a 2023 Virginia Regional Outstanding Economic Educator by the Virginia Council on Economic Education, and has also served as EAN Vice President, Board member, and Building Representative.