Inflation is killing teen budgets from gas, to food, and to entertainment. Students are finding it hard to find money to pay for the things they used to.
Inflation has risen about 20 percent since 2020, according to data from the Legislative Analyst’s Office. This means that a $4 drink in 2020 will cost around $4.80 in 2024. On a larger scale, something that cost $1,000 in 2020 costs around $1,200 today. In general, inflation has created worries for society that have impacted budgeting, education and career decisions, and wages.
So how has the massive rise in prices affected teens? Cleveland students have noticed that money doesn’t get them as far as it used to.
“I feel like when I was 14, I was able to spend money on food and random stuff more frequently than I am now. Now, I get a drink at Starbucks and it’s like $8 dollars,” says junior Gia Rodenbush.
As food is something that many students find themselves spending the most money on, this seems to be a very common sentiment. Getting food with friends or by yourself requires a decent amount of money to be spent.
“Especially food, because to feed just myself, I might be getting $15 dollars worth of food and it’s just a little meal,” says sophomore Sabrina Johnson. “I feel like you have to try to restrict yourself. Have a plan for your money. When you get this income, some of it will go here, some of it will go here.”
Clearly things are becoming more expensive by the minute, but what can be done about it? The easiest solution seems simple — save and stash. But how do you go about balancing fun and funds?
Even adults find their money gets them less, but they’re typically a bit wiser when it comes to saving. Jennifer Walker, bookkeeper and business connoisseur, claims that all you need to shop smart is a bit of careful thinking.
“Well, I mean you have to think about whether or not you actually want something, and if it’s worth the amount of time that you have to work to earn the money to buy it,” she said. Walker elaborated and said that she spends “ too much money on good groceries instead of the cheaper stuff.”
Budgeting is a complicated idea, and there are many different ways to go about it. One recommended way to start budgeting is by dividing and storing your money. Knowing how much you earn is a key aspect of budgeting. Once you know that, you can figure out how much money you can set aside for spending and saving.
Another good way to begin budgeting is by figuring out your goals for your money. Depending on what you want to do with it, you might need to save more. Being able to limit yourself on how much money you are spending is an important skill for budgeting as well as life. In the meantime, maybe pass on the Doordash and think about whether that Temu cart is really worth the money.