How Inflation Works (Real World Economics)
Real World Economics Series
on Goodreads (5)
What’s inside...
How Inflation Works (Real World Economics) is a comprehensive guide authored by Joyce Hart exploring the concept of inflation, its causes, effects, and strategies for managing it. The book provides practical insights, real-world examples, and simplifies complex economic theories to make them understandable for young readers. It includes historical examples of inflation, illustrative sidebars like 'Myths and Facts about Inflation', and advice on interacting with financial advisers.
Series reading
Non-Sequential
Age
12-17
Length
80 pages
Text complexity
Discussion points
What do you think causes the prices of things to go up?
Can you think of a time when something you wanted to buy cost more than it did before?
How do you think inflation affects families like ours?
Why is it important for people to understand how inflation works?
What are some ways that people can manage their money during times of high inflation?
Tip: Role play these questions
Start by sharing a personal story about a time you noticed prices increasing, and ask your child if they’ve noticed similar changes. Encourage them to think about how everyday items might cost more. Discuss the broader impacts of inflation on different households and economies to give them a real-world perspective. Reinforce the importance of financial literacy and discuss ways to save and spend wisely during different economic times.
Key lessons
Example Lesson: Understanding the concept of inflation
Explanation: Joyce Hart’s 'How Inflation Works' simplifies the complex economic concept of inflation, explaining how general increases in prices impact economies.
Real-World Application: Children can apply this knowledge by observing and discussing price changes in everyday items like groceries or toys, fostering early financial literacy.
Example Lesson: The importance of economic awareness
Explanation: The book emphasizes how economic factors like inflation affect daily life and the importance of being aware of these changes.
Real-World Application: This encourages children to take an interest in news or discussions related to economy, promoting informed citizenship from a young age.
Example Lesson: Critical thinking and problem solving
Explanation: Through exploring causes and effects of inflation, the book challenges children to think critically about how and why economic changes happen.
Real-World Application: Kids learn to analyze situations and make predictions about outcomes, skills they can use in school projects or while managing personal allowances.
Example Lesson: Decision making
Explanation: Hart's book introduces how inflation influences decisions made by businesses and governments.
Real-World Application: Children understand the impact of financial decisions, allowing them to make thoughtful choices about saving or spending their own money.
Example Lesson: The role of government in economy
Explanation: The narrative explains the government's role in controlling inflation through policies.
Real-World Application: This helps children appreciate the functions and responsibilities of governance, encouraging them to understand and participate in civic duties later in life.