Lesson

5 of 5 in Unit 3: Income, Taxes, and Benefits

Purchasing Power & Inflation

6-12th Grades

45 min

Summary

The amount on your paycheck can buy you more or less "stuff" depending on where (and when) you live. Learn about how cost-of-living, inflation, and purchasing power impact your life and financial future.

Activities

Bellringer: Gas Prices

Show 1970 gas price and ask: were you richer at $10/hr in 1970 or $15/hr today?
Bridge student responses to the idea that money's value is relative, not fixed.

5 min

Instruction

Define inflation, nominal vs. real income, CPI, and Cost of Living Index (COLI).
Use the raise-that's-actually-a-pay-cut example and NYC vs. Jackson COLI comparison to illustrate purchasing power.

15 min

Discussion: The Great Move

Present the dream-city vs. hometown scenario (COLI 140 vs. 70) and have students debate which they'd choose.
Prompt with salary, savings, values, and future-opportunity trade-offs as the conversation develops.

10 min

Activity: Inflation Calculator

Students use the inflation calculator to experiment with different salaries, inflation rates, and savings amounts.

10 min

Wrap-Up & Assessment

Define inflation.
What happens to your purchasing power if you move to a higher COLI city?

5 min

Est. Time	Activity	Description
5 min	Bellringer: Gas Prices	Show 1970 gas price and ask: were you richer at $10/hr in 1970 or $15/hr today? Bridge student responses to the idea that money's value is relative, not fixed.
15 min	Instruction	Define inflation, nominal vs. real income, CPI, and Cost of Living Index (COLI). Use the raise-that's-actually-a-pay-cut example and NYC vs. Jackson COLI comparison to illustrate purchasing power.
10 min	Discussion: The Great Move	Present the dream-city vs. hometown scenario (COLI 140 vs. 70) and have students debate which they'd choose. Prompt with salary, savings, values, and future-opportunity trade-offs as the conversation develops.
10 min	Activity: Inflation Calculator	Students use the inflation calculator to experiment with different salaries, inflation rates, and savings amounts.
5 min	Wrap-Up & Assessment	Define inflation. What happens to your purchasing power if you move to a higher COLI city?

Lesson Prep

Inflation Calculator

Inflation measures how much prices and goods rise over time in an economy. Healthy inflation is normal, but it can impact your budget.

Inflation Calculator

Inflation measures how much prices and goods rise over time in an economy. Healthy inflation is normal, but it can impact your budget.

Article

2 min

Class Presentation

Includes a 19-slide deck with teacher notes. Present from Banzai, download a PDF, or copy it to Google Slides.

Presentations, Ready to Go

Built-in PresentationPresent full screen, straight from Banzai
Copy to Google SlidesMake an editable copy for your class
Download or PrintSave as a PDF or print
Teacher NotesSlide-by-slide guidance, printable as one handout

Unit 3: Income, Taxes, and Benefits

Tax Paperwork & The IRS

Every employed American is responsible for paying employment and income tax. This lesson focuses on how to determine your tax responsibility, paperwork required for employment, and the progressive tax structure of the IRS.

9-12th Grades

45 Min

Benefits & Total Compensation

Total compensation isn't just wages or salary earned. Explore monetary and non-monetary employee benefits, and the pros and cons of common employee benefits.

9-12th Grades

45 Min

Current Lesson