Decisional Balance: A tool that helps compare the benefits and drawbacks of different choices.
Pros: Positive outcomes or benefits of a choice.
Cons: Negative outcomes or drawbacks of a choice.
Opportunity Cost: What you give up when choosing one option over another.
- Identify the choice: What decision needs to be made?
- List the pros: Write down all positive aspects
- List the cons: Write down all negative aspects
- Weigh the options: Compare pros vs cons
- Make the decision: Choose the better option
• Always compare prices before buying
• Save money for important items
• Consider if you can afford the purchase
• Think about opportunity cost
• Plan your spending in advance
| Choice: Buy Toy Car ($15) | PROS (+) | CONS (-) |
|---|---|---|
| I will have a new toy car | ✓ Fun and entertainment | ✗ Only $5 left for other things |
| I will be happy | ✓ Makes me smile | ✗ Could save for bigger item |
| I can play with friends | ✓ Social activity | ✗ May break quickly |
- Identify the choice: Buy toy car or keep money
- List the pros: Fun, happiness, social benefits
- List the cons: Limited remaining funds, opportunity cost
- Weigh options: 3 pros vs 3 cons
- Consider budget: $20 budget, $15 spent, $5 remaining
Sarah has $20 total. The toy costs $15. After purchase, she'll have $5 left.
• Gets a fun toy car
• Brings joy and entertainment
• Can share with friends
• Only $5 remaining
• Could save for something bigger
• Might regret later
Save money for a larger purchase or find cheaper alternative.
This decision depends on Sarah's priorities. If she really wants the car and doesn't need the remaining $5, it might be worth it. However, saving could allow for bigger purchases later.
• Budget management: Consider available funds
• Opportunity cost: What else could $15 buy?
• Wants vs Needs: Is this necessary?
| Choice: Candy Bar ($3) | PROS (+) | CONS (-) |
|---|---|---|
| Tastes sweet | ✓ Immediate satisfaction | ✗ Not healthy |
| Popular with friends | ✓ Social acceptance | ✗ Sugar crash later |
| Easy to eat | ✓ Convenient | ✗ No nutrition |
| Choice: Fruit Snack ($2) | PROS (+) | CONS (-) |
|---|---|---|
| Healthy choice | ✓ Good for body | ✗ Less sweet taste |
| Provides energy | ✓ Natural vitamins | ✗ Different texture |
| Good for growth | ✓ Builds strong body | ✗ Some kids don't like |
Candy: $3 (sweet, less healthy) vs Fruit: $2 (healthy, nutritious)
Fruit snack provides nutrients and energy for growing bodies.
Fruit snack costs less ($2) leaving $8 remaining vs $7 for candy.
Healthier option with better budget management.
Tom should choose the fruit snack because it's healthier, costs less, and leaves him with more money to spend on other things.
• Health considerations: Choose nutritious options
• Budget efficiency: Get more value for money
• Long-term benefits: Health impacts future
| Choice: Video Game ($20) | PROS (+) | CONS (-) |
|---|---|---|
| Hours of entertainment | ✓ Fun and engaging | ✗ Expensive |
| Popular with peers | ✓ Social connection | ✗ Limited to one activity |
| New skills learned | ✓ Problem-solving | ✗ Screen time concerns |
| Choice: Books ($15) | PROS (+) | CONS (-) |
|---|---|---|
| Knowledge and learning | ✓ Educational | ✗ Requires focus |
| Multiple stories | ✓ Lasting enjoyment | ✗ Less interactive |
| Can share with others | ✓ Sharing opportunity | ✗ Takes time to finish |
Emma has $25. Option 1: Game ($20) leaves $5. Option 2: Books ($15) leaves $10.
Game offers entertainment but books offer education and longer-lasting value.
Books leave $10 remaining vs $5 for game. Extra money allows for additional purchases.
Books provide better value considering cost, education, and remaining budget.
Emma should choose the books because they cost less, provide educational value, and leave her with more money to spend on other things.
• Value assessment: Compare cost vs benefit
• Educational investment: Books provide lasting value
• Budget optimization: Choose option that maximizes remaining funds
| Choice: T-Shirt ($25) | PROS (+) | CONS (-) |
|---|---|---|
| Looks cool | ✓ Style and confidence | ✗ Expensive |
| Wear for events | ✓ Versatile | ✗ Only one item |
| Friends like it | ✓ Social approval | ✗ May go out of style |
| Choice: Three Pairs of Socks ($20) | PROS (+) | CONS (-) |
|---|---|---|
| Need for daily wear | ✓ Practical necessity | ✗ Not exciting |
| Replace old ones | ✓ Useful | ✗ Don't impress friends |
| Multiple items | ✓ Better value | ✗ Less visible |
T-shirt is a want (style), socks are a need (daily necessity).
Socks serve a daily purpose while t-shirt is occasional wear.
Socks cost $20 leaving $10 vs t-shirt at $25 leaving $5.
Practical needs take priority over style wants.
Alex should buy the socks because they meet a practical need, cost less, and leave more money for other purchases.
• Needs vs Wants: Prioritize necessities
• Budget optimization: Maximize remaining funds
• Practical value: Consider daily utility
| Choice: Pizza ($6) | PROS (+) | CONS (-) |
|---|---|---|
| Tasty and filling | ✓ Satisfying meal | ✗ More expensive |
| Popular choice | ✓ Enjoyable taste | ✗ Higher calories |
| Large portion | ✓ Full stomach | ✗ Less healthy |
| Choice: Sandwich & Juice ($5) | PROS (+) | CONS (-) |
|---|---|---|
| Balanced nutrition | ✓ Healthier option | ✗ Smaller portions |
| Energy boost | ✓ Juice provides vitamins | ✗ Less exciting |
| Full meal | ✓ Balanced diet | ✗ May not be as filling |
Sandwich and juice provide balanced nutrition vs pizza being less healthy.
Sandwich and juice cost $5 leaving $3 vs pizza at $6 leaving $2.
Healthier option supports better energy and growth.
Health and budget efficiency favor the sandwich and juice.
Maya should choose the sandwich and juice because it's healthier, costs less, and leaves more money remaining.
• Nutritional value: Choose healthier options
• Budget management: Maximize remaining funds
• Balanced meals: Support growth and energy
Decisional Balance Infographic
2. List pros
3. List cons
4. Weigh options
5. Decide
Think long-term
Consider needs vs wants
Ask for advice
Plan spending
Save for goals
Track expenses
Prioritize needs
Plan purchases
Review decisions
- Cost-Benefit Analysis: Assign points to pros and cons
- Time Delay Technique: Wait 24 hours before big purchases
- Alternative Options: Always consider at least 3 choices
- Goal Alignment: Does the purchase support your financial goals?
• Always think before you spend
• Save a portion of your money
• Distinguish between wants and needs
• Use decisional balance for major purchases
• Review your decisions to learn
Questions & Answers
Question: How do I teach my 3rd grader to properly use a decisional balance worksheet when they want to spend their allowance? They seem to focus only on the fun parts and ignore consequences.
Answer: Great question! With 3rd graders, make it visual and concrete:
- Use pictures or drawings next to pros and cons
- Create a simple 2-column chart with smiley faces for pros and sad faces for cons
- Give examples from their life: "If you buy this toy now, you won't have money for the school book fair next week"
- Start with small decisions ($1-$2) before moving to bigger ones
- Make it routine: "Let's fill out your decision sheet before any purchase over $1"
Example for a $5 toy: Pros could include "I'll have fun" with a drawing of a smiley face. Cons could include "No money left for ice cream" with a sad face. This visual approach helps children connect abstract concepts to concrete outcomes.
Question: My students struggle with understanding opportunity cost. How can I explain this concept in the context of decisional balance worksheets?
Answer: Explain opportunity cost as "the next best thing you give up." Use simple scenarios:
- "If you spend $3 on candy, you can't spend it on stickers"
- "If you use your time playing video games, you miss story time"
- Create a "trade-off" column in the decisional balance worksheet showing what they're giving up
Example worksheet addition: Under "Con: Buy video game ($10)", add "Trade-off: Could have bought 5 small toys instead." This helps students visualize that every choice means giving up other possibilities. Use manipulatives like coins or counters to physically demonstrate the concept.
Question: Sometimes I want something but I don't know if it's worth the money. How do I decide?
Answer: Sam, here's a simple way to decide:
- Wait 24 hours - see if you still want it tomorrow
- Ask yourself: "Will I still want this next week?"
- Think about what else you could buy with the same money
- Consider if it's something you need or just want
- Try to earn the money by doing chores instead of just spending saved money
Also, use your decisional balance worksheet! Write down why you want it (pros) and what you'll miss out on (cons). If the cons are bigger than the pros, maybe wait or choose something else. Remember: it's okay to say "not yet" to something you want!