Explain “opportunity cost” to a 3 year old

A couple of days ago, after dinner, Evan (my 3-year-old son) wanted to watch a little bit of TV (Peppa Pig!) and play with his brand-new board game. With bedtime approaching, it was clear that there wouldn’t be enough time for both activities. Ah ha! Time to teach him what opportunity cost is, i thought. In simple terms, opportunity cost is about understanding that when we make a choice, we often have to give up something else in return.

I sat down with Evan and explained that while he really wanted to do both things, he could only choose one before we started getting ready for bed. I asked Evan what he enjoyed about watching TV and playing the board game. He shared his excitement about the colorful characters on TV and the fun of rolling dice and moving game pieces. I acknowledged his enthusiasm for both activities and then pointed out that because we had limited time before bedtime, he would need to decide which one he wanted to do more. I could see the wheels turning in Evan’s mind as he considered his options.

I asked him what he would gain from each activity and what he might miss out on by not choosing the other. Evan’s understanding began to dawn on him, and he decided to play the board game (probably because it’s new!) As we began to set up the game, I praised Evan for making a decision and explained that this was an example of opportunity cost. I told him that by choosing the board game, he was giving up the chance to watch TV that evening. It wasn’t about making a “right” or “wrong” choice but rather about understanding the consequences of our decisions. Making choices is a part of life and sometimes we have to consider what we value most. Yesterday, he told me he wanted to go to the zoo and his cousin’s house both in the morning this saturday. I told him there isn’t enough time in the morning to do both. And then suddenly he burst out, “Hey mama, that’s opportunity cost!