Schools are generally focused on explaining deep detailed models rather than focusing on preparing students to understand real world inflation. Teaching inflation in schools should be different. It is crucial that students are able to grasp the idea regarding the impact inflation has in our everyday life. Many students can define inflation. However, fewer students are able to explain why their everyday costs are increasing. This gap is a serious problem. At the UW-Oshkosh, I have been able to learn the definition of inflation, which is a general increase in the price over time. But outside the classroom, inflation doesn’t feel like a definition.
It feels like paying $3.60 for a gallon of gas when it used to be around $2.40. According to the U.S. Bureau of Labor Statistics, in March, the Consumer Price Index for all urban consumers rose 0.9%, seasonally adjusted and rose 3.3% over the last 12 months, not seasonally adjusted. This isn’t the only area inflation shows up in, it happens with just about anything you buy. Whether that is grocery bills, rent and overall small expenses that tend to add up quickly for students. The way we teach inflation often conflicts with what is reality. Schools focus on graphs, percent ages and indexes, but they don’t always connect these ideas to what people are actually experiencing.
As a result, many students understand the concept on paper but get confused when they hear that inflation is “cooling,” even though their own costs remain high.We should be teaching inflation differently. Start with real-life experiences. Instead of beginning with formulas, we could begin with relatable topics, such as “what has gotten more expensive in their lives?” Then explain how that relates to the formula.
Concepts like supply and demand or interest rates tend to make more sense when they explain something tangible, such as rising gas prices or higher grocery costs. When students have a relatable subject oftentimes they can digest the material easier. This shift would do more than just improve classroom learning. It could create a more informed society. When people are able to connect economic data to their own lives, they can be better equipped to make better decisions and make smarter financial choices to better their future.
Right now it seems like too many students leave their economics classes understanding the definition of inflation but not how it relates to their life and why it’s so important. This in all is a missed opportunity for society to understand how the economy can affect them. If we want people to truly understand the economy, we need to start teaching it in a way that reflects the reality they live every day and this should be schools top priorities.
