5) Buy & Sell Activity |
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Objective: Discover the cost of common products and how they may lose monetary value over time. Consider your needs, wants, and financial position as you buy and sell items during your life.
About Buy & Sell
As you live your life, you will need to purchase certain items and want to purchase others. Consider the difference between needs and wants.
Needs are things that are essential, regardless of your financial condition, such as food, shelter, and clothing. These items are necessary for maintaining life, and unless these needs are met, there is little necessity for other things.
Wants are things that you might wish to have, but not having them will not threaten your existence, such as a new television, video games, and taking a vacation. Wants are items you can live without, but would very much like to have.
When you own an item, it may appreciate or depreciate in value.
Appreciation is when the value of an item increases over time. Items that may appreciate over time include real estate, precious metals, art, and antiques. Nothing is guaranteed to increase in value, so be cautious when considering appreciation.
Depreciation is when the value of an item decreases over time. Most items depreciate in value – some faster than others. Automobiles, computers, and smartphones are example of items that quickly depreciate in value.
The financial value of an item is usually based on the amount that someone is willing and able to pay for the item. If an item is difficult to sell, then its value becomes questionable. You may have strong feelings about an item, but such sentimental value is not factored into the actual financial value of an item.
How to Play
As you live your life, you will need to purchase certain items and want to purchase others. Consider the difference between needs and wants.
Needs are things that are essential, regardless of your financial condition, such as food, shelter, and clothing. These items are necessary for maintaining life, and unless these needs are met, there is little necessity for other things.
Wants are things that you might wish to have, but not having them will not threaten your existence, such as a new television, video games, and taking a vacation. Wants are items you can live without, but would very much like to have.
When you own an item, it may appreciate or depreciate in value.
Appreciation is when the value of an item increases over time. Items that may appreciate over time include real estate, precious metals, art, and antiques. Nothing is guaranteed to increase in value, so be cautious when considering appreciation.
Depreciation is when the value of an item decreases over time. Most items depreciate in value – some faster than others. Automobiles, computers, and smartphones are example of items that quickly depreciate in value.
The financial value of an item is usually based on the amount that someone is willing and able to pay for the item. If an item is difficult to sell, then its value becomes questionable. You may have strong feelings about an item, but such sentimental value is not factored into the actual financial value of an item.
How to Play
- Review the items available to purchase. Click the NEXT or PREV links to scroll through the items or use the dropdown to jump to a specific category.
- Click an item to view its details. Click BUY to purchase it. Once an item is purchased, a checkmark will appear over it.
- To sell a purchased item, click it then click SELL. The item will be sold for the depreciated SELL PRICE.
- Monitor the PURCHASE COST TOTAL to see how much all of your items will cost. Experiment with the SELLING PRICE TOTAL to see how your items will depreciate in value over time.
- Use the PRINT button to print to paper or save as an electronic file (pdf). Write your name down on the printout if you will be submitting to an instructor.
- Use the RESET button to erase your data or start over.
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PRACTICE
Click the PLAY ACTIVITY button below to do the activity for MO and then for yourself. Mo Money Play this activity to select 25 items that Mo will need in his life. Experiment with changing the number of years owned and sold to see how depreciation affects the value of items. Review the MO MONEY PROFILE. YOUR TURN! Complete your own Buy & Sell activity. |