Smart Money Parenting What is Inflation and Why Does It Matter?
Jul 21, 2023
16:03
How do you explain what inflation is to your kids? Scott Donnell and Chad Willardson talk about inflation, what it is, why it matters, and how to explain it to your kids.
- Chad starts the conversation by revealing the leading driver of inflation in the US.
- According to Chad, if your money isn’t growing, it’s losing a lot of its purchasing power and becoming less valuable.
- If you’re spending hundreds of thousands of dollars on a college education, ensure your kids learn valuable and practical things so they don’t graduate with a ton of debt and no skills.
- Chad talks about the difference between inflation and deflation.
- Scott explains how inflation and rising prices affect low-income households.
- For Scott, inflation is like a monster that can slowly eat away at what you have.
- Chad and Scott agree that learning to create more value is the best hedge against inflation.
- The statistics show that if you have a credit card, you are psychologically going to spend 30% more money.
- Chad and Scott talk about the benefits of having your money work for you.
- Chad goes through ways parents can make their kids understand why prices always go up in an economy.
- Scott reveals why you need to be aware of the things that can quickly dry up your bank account.
- Scott and Chad agree that saving and investing are critical for protecting yourself against inflation - always make more than you spend so that you can have something to save and invest.
- Scott reveals the two areas that prove inflation exists - rising health and medical costs.
Mentioned in This Episode:
smartmoneyparenting.com/followus
Smart, Not Spoiled: The 7 Money Skills Kids Must Master Before Leaving the Nest by Chad Willardson
Value Creation Kid: The Healthy Struggles Your Children Need to Succeed by Scott Donnell and Lee Benson
Scott Donnell on LinkedIn - https://www.linkedin.com/in/donnell-scott
Chad Willardson on LinkedIn - https://www.linkedin.com/in/chadwillardson
Scott Donnell on Instagram - @imscottdonnell
Chad Willardson on Instagram - @chad.willardson
Scott Donnell on TikTok - @imscottdonnell