Welcome back to Fabulous Financial Facts. I am Ann Zuraw.
You might be asking yourself why kids need to know about the economy. Stories about banks failing, bailouts, the deficit, housing market and the Dow Jones Industrial Average are in the news daily and are all pieces of our economy.
Knowing about economics helps them understand how things work. They probably don’t even realize that they actually deal with different economic factors every day. They need to learn about inflation because it can directly affect their buying power. So when they hear or read about topics like inflation and the price of crude oil, it will start to make sense to them.
By using examples that they can relate to, they will be able to understand why the price of filling up the gas tank can rise and fall from week to week.
If your teenager has a job, understanding inflation will put their salary increases in perspective. They will want their wages to increase more than the rate of inflation so that their increase isn’t just keeping pace with inflation…but that they are actually getting a real raise.
Keeping it simple. From AZ