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Marketplace®

Daily business news and economic stories
Season 3Episode 3Jul 5, 2022

What’s the deal with inflation?

Adults seem concerned about it. The government is, too. This week, Ryan and Bridget travel back in time to figure out what’s going on

What’s the deal with inflation?
Arnel Alinea

This week, Ryan and Bridget hear from a kid who can see the future! Or, at least, a kid who knows our dollars will be able to buy less stuff as time goes on. It’s all because of inflation, which seems to have the grown-ups concerned. After traveling back in time to stock up on snacks, the pair get a chance to try to control runaway inflation … but their ideas don’t quite go as planned.

A short comic explaining inflation: The idea that prices will rise over time. Ideally, inflation happens at a predictable pace. But when prices rise quickly, it can make consumers panic.
Arnel Alinea
unknown

And now … tips for grown-ups listening to “Million Bazillion” with kids

Money Talks

This one was a little more complex. Here are some questions you can ask to figure out how well your child understood the episode.

  1. What is inflation? What does it look like in our day-to-day life?

  2. What happens if inflation gets too high, too fast?

  3. Would inflation be easier to deal with if everyone stopped buying things for a while? Why? Or why not?

  4. How does the United States’ central bank, the Federal Reserve, keep inflation under control?

Tip Jar

If your kid got a little lost in this one, that’s OK! We don’t need to tell you that inflation can be a drag for grown-ups right now, too. It’s worth talking to your kids about what inflation is and how it might change some of the decisions you’re making in your household.

We mentioned the “basket of goods” the government uses for one measure of inflation, the consumer price index. Check out this video demonstrating the concept in more detail, then try it for yourself! Over a few weeks (or longer), have your kid note the price of a grocery store staple, like eggs or toilet paper. Note the changes in price over time and talk about what might be influencing those changes.

If your kid has a good handle on the concepts from this episode, consider taking it a step further with this lesson plan from The New York Times (it’s not behind a paywall, though some of the articles might be). There’s a tool to help your kids understand charts as well as timely articles showing inflation in the real world.

If you do decide to make a negotiation opportunity out of this inflationary moment, consider refreshing your negotiating skills with our episode all about it.

Gimme Five

Our other Marketplace shows want to hear your kids’ best metaphors for explaining inflation. Send them to us using this online form and we might put your kid on air!

The Team

Thanks to our sponsors

NGPF

The Ranzetta Family Charitable Fund and Next Gen Personal Finance, supports Marketplace’s work to make younger audiences smarter about the economy. Next Gen Personal Finance is a non-profit that believes all students benefit from having a financial education before they cross the stage at high school graduation.

Greenlight

Greenlight is a debit card and money app for kids and teens. Through the Greenlight app, parents can transfer money, automate allowance, manage chores, set flexible spend controls and invest for their kids’ futures (parents can invest on the platform too!) Kids and teens learn to earn, save, spend wisely, give and invest with parental approval. Our mission is to shine a light on the world of money for families and empower parents to raise financially-smart kids. We aim to create a world where every child grows up to be financially healthy and happy. Today, Greenlight serves 5 million+ parents and kids, helping them learn healthy financial habits, collectively save more than $350 million to-date and invest more than $20 million.

Sy Syms Foundation

The Sy Syms Foundation: Partnering with organizations and people working for a better and more just future since 1985.