Materials

• Chart paper/chalkboard
• Markers
• Sentence strips
• Textbook, trade books, or other instructional materials

Instructional Activities

1. In this session, students will study the economics of colonial times. Set the scenario by placing the following statement on the board:
   
   You have no money. All you have are your toys and video games. You visit a friend who has a toy that you would really like to have. Without taking it from him, what would you offer to gain possession of your friend’s toy?
   
   List student responses. Lead them to think about trading and introduce the term barter. Review how the colonists traded with the American Indians (First Americans) to survive during early colonization.
   
   
2. Ask, “How do people acquire what they need or want in today’s society?” (Examples: money, checks, debit cards, credit cards)
   
   
3. Divide the students into four groups and give each group one of the following terms: money, credit, debt, and savings. Have each group define the word and generate a skit to perform for the class to teach their peers what they learned. Give the group a sentence strip to write the word and definition to be posted for easy reference and review.
   
   
4. Have students make an "Economic Terms" booklet, writing a definition and either drawing a picture or writing a sentence using each economic term.
   
   
5. Review that tobacco was a cash crop and was often referred to as green gold; therefore, it was used as money. Farmers, for example, would barter their harvested tobacco for goods and services. Emphasize that few people had paper money and coins to pay for goods and services, therefore, they often purchased needed items on credit, promising to pay their debts when their crops were harvested and sold.
   
   
6. Ask the students “When your parents need money, where do they go to get it?” (You want them to relate banks as resource.) Ask, “Were there banks in Colonial times?” List reasons why or why not. Explain that in Colonial times there were no banks in Virginia. (The first bank of the United States was established in 1791.)
   
   
7. Separate the students into small groups to create products that may have been used by the Colonial people. Hold a market day activity in class to barter and exchange their products.