Family Economy Simulation

An economy is the system by which a community produces, distributes, and consumes goods and services. Every town, country, and family can have its own mini economy — and today you are going to experience one first-hand.

The three roles in the simulation

• Worker — completes tasks assigned by a producer (e.g., folding paper, sorting items, making labels) and earns a wage in play money for each task completed.
• Producer / Business Owner — runs a mini business, hires workers, pays wages, creates goods or services, and sells them to consumers at the market.
• Consumer — uses play money to buy goods and services from producer stalls; makes spending decisions based on what they need or want.

Key economics ideas in the simulation

• Wage — the payment a worker receives for completing a task or working a set time.
• Budget — the amount of money available to spend; you must stay within your budget.
• Supply and demand — if many people want something (high demand) and there is little of it (low supply), the price tends to go up.
• Scarcity — when there is not enough of a resource or good to meet everyone's wants; scarcity requires people to make choices.

Reflection questions for after the simulation

• Which role did you find most challenging — worker, producer, or consumer? Why?
• Did you save any money or spend it all? What influenced your decision?
• What would happen to the whole economy if everyone stopped spending at the same time?