Monday, December 22, 2014

Financial Literacy, The Economy, And Holiday Shopping

Source: NBC News
We received a lot of questions from our students about "Black Friday" this fall. It seems the play up to the annual start of the holiday shopping frenzy grows earlier with each passing year. If your students are like ours, many did not understand the hype around this day, how it affects the economy, or for that matter, why it is so important to the bottom line of so many companies.

Source: NBC News
Many students are unfamiliar with the term  “being in the red,” so the concept of “Black Friday” makes little sense when it comes to the overall economy. The video from NBC entitled “How Badly Would the Economy Suffer If Holidays Were Cancelled?” illustrates just how much the holiday shopping season has an impact on the economy even though it is a small part of the total.



Sometimes we need to stop and explain the underlying lingo to help students realize the financial implications. It’s more than just shopping for gifts. It may be a small portion of the larger economy, but many people depend on the holiday shopping season to help make ends meet. The issue is not whether it is too much hype, but more importantly, how it affects others. Either way, we cannot assume our learners understand the economic impact based on the colors of red and black unless we educate them.

2 comments:

  1. Great article as usual. A big thank you for all you us share.

    ReplyDelete

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