Economic Production

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Closely related to the concept of scarcity is the concept of production. The function of production, to some extent, is to try to meet the unlimited wants of consumers. In a democratic society, people choose the goods and services they consume and produce, although advertising and consumer demand influence both. The concept of exchange of money is related to economic production: consumers use money to purchase goods and services. Children can develop concepts of (1) being a consumer, (2) the function of money, (3) the differences between goods and services, and (4) production.

Consumers

Even before children can walk or talk, they consume goods, use services, and express their wants and needs. As they mature, they begin to choose what they buy. Their values influence the decisions they make; they will evaluate alternatives and select the best buy for their money and needs as well as act on their rights and responsibilities as consumers.

Throughout the school year, you can help children clarify their likes and dislikes. They might discuss and identify the stories they like or dislike, decide on materials they like, and explain why they did not select the alternative materials. Making lists, booklets, charts, or murals depicting favorite things at school, at home, or in the neighborhood will help children clarify their preferences. You can remind children to be honest and make decisions based on their likes rather than those of their parents, peers, or teacher.

Playing store is another way in which children make concepts of consumer and producer real to them. Taking on the role of clerk and purchaser, children gain insights into the roles of consumer and producer. Researchers have found that children’s store play begins simply, gradually building in complexity and becoming closer to reality:

• Stage 1. The very young child uses imitative play, often with a mother or a father, and uses imaginary goods. Usually the child has no concern about purchasing or exchanging money.
• Stage 2. This is the beginning of creative play. Children improvise play materials, use buttons for money, and play at purchasing items.
• Stage 3. Children appear to desire more representative goods; empty cartons, canned goods, and play money are useful at this stage.
• Stage 4. Children construct the store and goods, build counters, cut money out of paper, make signs, and take parts in purchasing and in exchanging money.
• Stage 5. A continuation of free play leads to more involved projects and teacher-contrived explorations of children’s interests. Children use signs, prices, graphs, and scales and hold sales with reduced merchandise or actually sell small boxes of raisins, cookies baked by the class, or plants grown from seeds.

As with other play, children need time to develop complex responses and to become involved in store play. To obtain the full potential from shop play, children need the opportunity to progress from the imitative stage to the creative and complex stage. Thus, shop play should continue through the primary grades rather than stop at kindergarten or first grade.