Cupcake Economics With Fancy Nancy (K-2)

Do you love Fancy Nancy? Do you want to teach Economics concepts while you read children’s literature? Then you need these economics-based questions (EBQ’s) to accompany Fancy Nancy and the Delectable Cupcakes. This lesson can be used with K-2 grades. First you will find the EBQ’s that can be used in general. Following the EBQ’s, find CCSS tasks based on NGSSS for Social Studies Economics for K-2


During Reading: During reading, there are perfect opportunities for discussing these econ-cepts.

Cover: Fancy Nancy is making cupcakes. What goods do you need to buy at the supermarket to make cupcakes? Look at the picture. What are some of the resources she is using?

P. 6: There is a bake sale at school the next day. The bake sale is to raise money for library books. How does that work? How does the school make money from the bake sale? (People donate goods/ services)

P. 12: At the market, what goods does Nancy’s mom buy? These goods will be used to make other goods–cupcakes–so they are called intermediate goods. What are the natural resources that were used to create these goods? (sugar cane, wheat, etc.)

P. 13-15: Capital resources are the tools used to make the cupcakes. What tools are used? Human resources are the people who help make the cupcakes. Who are the human resources and what jobs are they doing?

P. 19: Nancy is making a deal with a friend to exchange 2 brownies for 2 cupcakes. Does that make money for the school library? How does that exchange benefit Nancy and her friend? Nancy will exchange some cupcakes for other goods. She will also sell cupcakes in exchange for currency-money.

P. 25: After Nancy’s disaster where the dog eats the cupcakes, her father also brought home resources to make cupcakes. What goods did he have in his bag? Were these the same goods mom bought? Anything different? Do you remember what you call goods that are used to make another product? That’s right! Intermediate goods. They are in the middle of being goods themselves (flour, sugar, etc.) and being made into another product (a cupcake).

P. 27: What jobs were people doing on pages 25-27 in order to make cupcakes? What equipment (capital resources) or tools did they use? Was there anything different from the tools on pages 13-15?

P. 29-30: The bake-sale! Who are the buyers? Who are the sellers? What are all of the goods for sale? How do you think people paid for the baked goods? Where do you think they stored the money?

After Reading: Use “Focus Econ-cepts for Grades” to reinforce specific standard concepts.



K: K:SS.K.E.1.1 Describe different of jobs that people do and the tools and equipment used.

Before Reading: What are the tools and equipment needed to make cupcakes? What jobs do people do to make cupcakes?

During Reading: Thumbs up for tools or jobs.

After Reading: Let’s review the tools and jobs. Now let’s make our own cupcakes or watch a video and find out what other tools and equipment are needed. Students can draw a picture or make a comic about how cupcakes are made.

1st Grade: 1 SS.1.E.1.6. Distinguish people as buyers, sellers, and producers of goods and services.

Before Reading: Pretend you want to make cupcakes. What goods/services would you use?

Who would be the buyers, sellers, producers?

During Reading: Thumbs up for econ-cepts.

After Reading: Let’s review the goods and services. Who were the buyers, sellers, and producers of these goods and services? Now put in your own ideas. If you were going to have a cupcake stand, where would you get your goods? Who would be the seller? How would you get buyers/customers? Would you advertise? Make your poster/advertisement.

2nd Grade: SS.2.E.1.1 Recognize that people make choices because of limited (scarce) resources.

Before Reading: Fancy Nancy wants to help the library bakesale. When the dog eats her cupcakes she has scarce resources. What choices does she have?

During Reading: Thumbs up for scarcity/choices.

After Reading: What if Nancy’s dad didn’t bring home ingredients? What could they have done? What choices would they have? What decision would you make?

About Deborah Kozdras

Instructor and Chief Creative Officer at the Gus A. Stavros Center for Free Enterprise and Economic Education at the University of South Florida.
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