In previous years, personal income levels did not drop. Personal income levels dropped each month from March through June 2020. In the time between 20, numerous changes took place in the economy. For all of 2019, the personal saving rate was 7.5%. In June 2020, the personal saving rate was 19%. How much people save is often a reflection of how the economy is doing. The “personal saving rate” is the money people save compared to their disposable income, and it’s fluctuated over the years. When the economy is good, we have the freedom to buy what we want and need. They may also have enough money to buy extra items or set aside savings. During a good economy, people tend to have enough money to afford the things they need, such as food, clothing, and a place to live. You have a straightforward way of explaining a good economy to your kids. Modern technological advances, like robots, accelerate production and broaden the range of jobs that are available to workers. Inventions, such as the moving assembly line, made it possible to produce more of an item in a shorter period. Changes in technology: Technological changes and advancements also affect the economy.People typically shop more or less, depending on how they feel about the president’s future impact on the economy. Another example of how social or political changes affect the economy can be seen when a new president is elected. One example is the COVID-19 pandemic, which caused businesses to shut down and unemployment to increase. You can use examples to illustrate this concept to your kids. Political and social climate: Social changes and political events also affect the economy.Second, people need to have the skills and knowledge required to perform those jobs. First, it helps to have enough people to fill the jobs required to keep the economy moving. People can play a role in the health of an economy in a couple of ways. Availability of people: People are another resource that influences the economy of an area.This can lead to more money coming into and being exchanged in the area. For example, if a country has an abundance of resources, such as plants, minerals, livestock, and water, it’s likely to be able to provide more opportunities for the creation of products, services, and jobs than an area that has few or no resources. Availability of resources: The amount of resources in an area has an important role in influencing its overall economy.The amount of money that’s available can also fluctuate depending on local, national, or global events. People might spend more or less money during particular times or when certain events are taking place. Next, you can get into the factors that influence the economy. It can also refer to the economy of a country or to the way money is made and spent around the world. The word can refer to a local economy, such as the way people spend and make money in a small town or larger city. One simple way to define the economy: It’s the way people spend money and the way people make money.Īn economy can be big or small. When talking about the economy with your children, begin with a definition of the word.
#Economic websites for elementary students series
How can you simplify something with so many moving parts? Segment your explanation into a series of explanations, and start with the basics. After all, it’s a complex subject, even for those who have dedicated their lives to the field of economics. Or, their questions might be specific, asking about the price of a particular item and why it increased.Ĭoming up with an easy way to explain the economy to children can seem like a big challenge. Their questions might be broad, asking about the economy as a concept. They’ve likely heard the word “economy” at school, on the news, or from a conversation between adults. If your kids are naturally inquisitive, they may be curious about the economy.