Lesson 3: Opportunity Cost

About 30 minutes — Discussion-based lesson

What You Will Learn

This lesson covers:

What is opportunity cost: what you give up when you choose
Real examples for 6th graders
Making better choices by thinking ahead
The hidden cost of impulse buying

What is opportunity cost: what you give up when you choose

This section covers the key ideas about what is opportunity cost: what you give up when you choose. Discuss with your group or family and explore the concepts together.

Real examples for 6th graders

This section covers the key ideas about real examples for 6th graders. Discuss with your group or family and explore the concepts together.

Making better choices by thinking ahead

This section covers the key ideas about making better choices by thinking ahead. Discuss with your group or family and explore the concepts together.

The hidden cost of impulse buying

This section covers the key ideas about the hidden cost of impulse buying. Discuss with your group or family and explore the concepts together.

Check Your Understanding

1. What is opportunity cost?

Answer: Opportunity cost is what you give up when you make a choice. If you spend $10 on a game, the opportunity cost is whatever else you could have done with that $10.

2. If you spend $15 on a movie, what might the opportunity cost be?

Answer: The opportunity cost could be saving that $15 toward a bigger goal, buying lunch for a friend, or putting it in your savings. It depends on your other options.

3. Why is understanding opportunity cost important for spending decisions?

Answer: Because every dollar can only be spent once. Understanding opportunity cost helps you think about what matters most before you spend.

4. What is the opportunity cost of impulse buying?

Answer: You lose the chance to spend that money on something you actually planned for or needed. Impulse purchases often have high opportunity costs because they were unplanned.

Key Takeaways

What is opportunity cost: what you give up when you choose
Real examples for 6th graders
Making better choices by thinking ahead
The hidden cost of impulse buying

Ready for More?

Next Lesson

Continue to Lesson 4: Israf and Qasad: Balance in Spending

Start Lesson 4

Session Home

Review all lessons and materials.

Back to Session Home