Grade K-2

We are Consumers and Producers

Time: 30 mins,
Updated: January 8 2021,


Students will be able to:

  • Identify and distinguish the differences between consumers and producers.
  • Identify goods and services purchased by consumers.

In this economics lesson, students learn how they and family members fulfill the roles of producers and consumers.



Discuss the following with the students:

You may have heard the expression, “That person wears many hats.” In this saying the hats represent the different roles or jobs a person may have. People have many roles. At home a person could be a family member, neighbor, or care giver. Outside the home a person could be a student, factory worker, health care provider, and so on.

Write the following questions on the board. Have students answer the following questions by either drawing a picture or writing in words/full sentences.

  1. What roles do you have at home?
  2. What roles do you have at school and in our community?

Introduce the two main concepts by explaining to the students that they wear two other hats. They are also consumers and producers. A consumer is a person who buys and uses goods and services. Ask students to repeat after you and define consumer. A producer is a person who makes goods or provides services. Ask students to repeat after you and define producer.


Project and display the Producers and Consumers nearpod nteractive to the class. It reviews the definition of consumers and producers, prompting students with questions. Review its contents with the class. As an alternative, students may view this slideshow presentation using a 1-1 device with headphones.

Group Activity

Print copies of I Can Wash Dishes and distribute one copy to each student. Pair students and have them complete the activity sheet. Review the answers as a class. See below:

Dirty dishes: 1
Dishes soaking in water: 2
Child washing/drying dishes: 3
Child organizing dishes: 4

Upon completion discuss the following questions with the students.

  1. Is washing the dishes a good or a service? [service]
  2. Are dishes, pots, and pans goods or services? [goods]
  3. Do you help wash the dishes in your home?

Individual Activity

Print and distribute one copy of the We are Consumers and Producers activity sheet to each student. Instruct the students to either draw pictures or write a list of three goods and/or services they like to consume and three goods and/or services they like to produce. Encourage the students to share their favorite goods and services with the class.


Tell students that in order to leave the class today, they must complete the Gift Coupon. Distribute one coupon to each student. Have the students fill them out in class individually. Collect and check to see if the students have filled out the coupon correctly. Return the coupons and tell the students to present it to a family member. Encourage students to share how the are a producer and what good or service they will offer honoring the coupon.


Activity 1

Play 21 Good or Service Questions. Ask the students to secretly write down the name of a good or service they use. Then, invite other members of the class to try to determine the secret good or service is by asking questions. Write the following questions on the board in order to prompt students to guess:

  1. Is it a good or service?
  2. Who uses your (good, service)?
  3. Do you have to pay for it?
  4. Is it bigger than your desk?
  5. Can you (hear, taste, smell) it?
  6. Is it something we would find at school (home)?

Activity 2

Create a bulletin board titled “We are Producers.” Have students cut out or draw pictures of jobs they could do for their family and/or community.