Inflation is when the price of things you normally buy go up over time. So, the end result is that it will cost you more money to buy the same thing today than it did in the past.

Here’s an odd illustration: I attended the Fresh Fest concert in 1985. The price of the ticket was $8. Today, the average price of a Taylor Swift concert is $1,088. But why the huge increase in ticket prices? Did the music get any louder? Did the songs get any better? 

No.

Well, maybe the production value of the set looks better. But is this why The Fed’s are fighting inflation all the time, so we can afford to drop it like it’s hot at a concert?

No.

The effects of inflation on the price of U.S. business exports is what The Fed’s are trying to keep in check. A higher domestic inflation rate makes U.S. products more expensive to buyers around the world – which would lead to lowers sales around the world. Lower sales leads to less commerce, fewer jobs needed, fewer houses being built, fewer cars purchased, and yes, less disposable income to spend on entertainment like concerts.

-Monk

We spend 12 – 20 years in school learning about every subject except for money. Then we spend the rest of our lives trying to figure out how to make money or how to grow the money we have.

My approach to  financial literacy is to teach it in a way that makes the complexities of finance so simple that your investing actions become instinctive. 

Financial Literacy:
Monk Says… Learn the Game

#Inflation #theEconomy #TaylorSwift