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Given increasing demand on the teaching field from regulatory initiatives and standards for student achievement, it is critical to study and measure psychosocial factors that can potentially influence an individual’s ability to teach effectively. This paper describes the process of developing and validating items for an instrument designed to measure confidence and anxiety in individuals faced with teaching a new subject. The instrument, Teaching Economic Literacy: Confidence and Anxiety (TELCA), was administered to teacher education students and practicing teachers. Measurement characteristics were tested through classical test theory and item response theory procedures. Results suggest the scales are internally consistent and possess an expected negative relationship to one another. Replication efforts and implications for future use are also discussed.