MicroBites #3: Game Nights and Opportunity Cost: What Are You Giving Up?

It’s Friday night, and you’ve got $15 and two free hours. Should you hit the movies with friends, stay home for a gaming marathon, or grab a burger and hang out at the mall? Every decision you make comes with a trade-off, and that’s where opportunity cost comes in.

What is Opportunity Cost?:

Opportunity cost is the value of what you give up when you choose one option over another. For example, if you choose the movies, you miss out on two hours of gaming and the money you could have saved by staying home. If you play games instead, you might miss out on the fun memories at the mall.

FOMO vs. Smart Choices:

Teens often face FOMO (Fear of Missing Out). But opportunity cost isn’t about regretting what you didn’t do, it’s about understanding what each choice offers and deciding what’s most valuable to you. A lot of people have a lot of trouble making decisions because they are trying to weight what they think would be more fun or better, but usually they end up being sad regardless of what they do because they always think about what would’ve happened if they chose the other option

Real-Life Example:

Imagine you have a part-time job that pays $10 an hour. If you decide to work instead of going to the movies, you’re giving up the fun but gaining $20. However, if you skip work to go out, the opportunity cost is the $20 you would’ve earned and whatever was spent at the movies. 

Why It Matters:

Understanding opportunity cost helps you make smarter decisions, not just for your Friday nights but for bigger choices like college, careers, and investments. There is always logic behind decisions, it is not just intuition. Opportunity cost is a big role in financial decisions whether it comes to stock choices or something like that. It is really important to know the implications of your decisions on yourself to pave the best path for yourself.

The Final Thought:

Next time you’re weighing options, ask yourself: “What’s the opportunity cost?” It’s a simple way to make sure your choices align with your goals and values.