As with all the talk about inflation, have you ever wondered what your personal inflation rate is? Or the personal inflation rate for the average American?
Thanks to the Financial Times for making this interactive breaking down the inflation rate into its budget components (e.g., rent, transportation, food).
Here’s the set-up (note that inflation figures are updated regularly):
Features of Interactive:
Includes data for US, Japan and UK Allows user to adjust maximum slider value with $2,000 as default Detailed methodology provided below interactive
Some activity ideas:
Use the default amounts provided and compare inflation rates across all three countries. Be sure to look at the Y-axis scale when comparing. Based on the latest statistics, how would you rank countries from highest to lowest national inflation rate? Identify the 5 biggest budget categories. Then move the slider for each individually to the right (increasing cost) and see the effect on the individual inflation rate. Which of the five budget categories has the greatest impact on the individual inflation rate? When you look at these five budget categories, which do you think you have the most control in terms of finding options or working without? For example, when you rent an apartment/house you have annual leases, so you don’t have control to reduce that cost until your lease expires.
Send any more ideas you have to [email protected] and I’ll be happy to add them to this post with credits.
About the author Tim Ranzetta
Tim’s saving habit began at seven when a neighbor with a broken hip gave him the task of walking the dog. His recovery, which took about a year, resulted in Tim getting to know the bank teller well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies, and helping families make better college financing decisions. Volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim first saw the impact of an engaging and activity-based curriculum that helped him create a new nonprofit, Next Gen Personal Finance. inspired to start. ,