Needs, Wants, and Trade-offs

Every dollar spent is a dollar not spent elsewhere.

12 problems · about 20 minutes · TEKS M.M.2.B

NameDate

Figure — use these to answer the problems

Annual cost of three small recurring habits. Repeated small amounts grow faster than most people expect.

Daily coffee1250

Streaming180

Bought lunch2000

Daily coffee per year1250

Streaming per year180

Bought lunch per year2000

Figure 1

Straightforward practice. Get the method working first.

5 problems

$6 a day for 250 days. Annual cost in dollars?
Answer
2
What is opportunity cost?
- The best alternative you gave up by spending the money.
- A fee charged on a purchase.
$4 a day for 250 days. Annual cost in dollars?
Answer
$25 a month. Annual cost in dollars?
Answer
$8 lunch for 250 days. Annual cost in dollars?
Answer

The same ideas with more to keep track of.

3 problems

Three subscriptions at $12, $15 and $9 a month. Annual total in dollars?
Answer
Cutting a $5 daily habit to twice a week, 50 times a year. New annual cost in dollars?
Answer
$2 a day for 365 days. Annual cost in dollars?
Answer

Mixed problems. Work out what kind of question it is before you start.

4 problems

Sort each item as a need or a want in most situations.
Write each item under the heading it belongs to: Basic groceries · Rent · The newest phone model · A streaming subscription
Need
Want
$30 a month gym. Annual cost in dollars?
Answer
The Habit
$5 a day for 250 days. Annual cost in dollars?
Answerdollars
The Subscription
$15 a month. Annual cost in dollars?
Answerdollars