August 22 – National Tooth Fairy Day

Bell Ringers, Economics(BR)

Watch: CSE – The Tooth Fairy

CSE – The Tooth Fairy – Official Trailer (HD) – 20th Century FOX from Certell on Vimeo.[/cs_text][/cs_column][/cs_row]

For those whose families participated, visits from the tooth fairy formed one of the great “awe” moments of an otherwise painful and sometimes messy rite of passage.

One of the challenges parents face is establishing the proper value for a tooth. Presumably it needs to be a round number. Presumably it needs to be enough to inspire the child to participate, but presumably it shouldn’t break the bank, either.

As it turns out, there is a lot of variability in the value of a lost tooth under a pillow. To see how much, play around with the calculator below.

Practical Money Skills – The Tooth Fairy Calculator

Clearly, the value of a tooth is subjective. Understanding subjective value helps us to recognize the importance of trade to create wealth. If you have something, and value it less than someone else, it enables you both to be better off by engaging in a trade. Using the calculator above, or discussing with others in your class, explore the different values people place on teeth, and explore why they might be so!

For instance, why is the amount less for some middle income brackets than for either high or low earners? (e.g. in California among 40 year old college educated males)