How the Economy Affects You — Even If You're Not Paying Bills Yet
This month’s inflation rate is 2.7%—and while that might seem like just another adult number, it directly affects young people. From the price of snacks to school supplies to bus fare, inflation means your money doesn’t stretch as far. And while the Federal Reserve hasn’t raised interest rates this month, they're still high—which makes borrowing (credit cards, car loans, or student loans) more expensive.
So, why should youth care?
Because this is how wealth-building starts:
Learning to budget in high-inflation times = long-term money strength.
Knowing what affects your future loans or job market gives you power.
Inflation also impacts your favorite stores and brands—leading to price hikes, shrinkflation, or even layoffs.
3 Signs to Watch as a Youth:
Inflation Rate (CPI): Is it going up or down? It tells you how fast prices are rising.
Federal Reserve Interest Rates: These influence student loan and credit card interest. Higher rates = more expensive debt.
Wages vs. Prices: Are paychecks growing faster than inflation? If not, people feel broke even when they’re working.
What You Can Do:
🧾 Track what you spend and start categorizing it—food, school, entertainment, etc.
📉 See what you can cut or swap if prices are up.
💡 Use this time to learn about saving and investing so you can grow money when inflation cools down.
People always say the economy is ‘for grown folks.’ But the truth is, money moves you now, and knowing what’s happening means you’re never caught off guard. Learn now, win later.
