Inflation Explained: Teen Budgeting & Purchasing Power Reading Worksheet
I’ve used this reading comprehension worksheet in my high school economics and personal finance classes to help students grasp the real-world impact of inflation, track the Consumer Price Index (CPI), and protect their purchasing power. My teens leave the lesson confident in their ability to adjust budgets, find high-yield savings, and spot inflation news.
In this inflation lesson you’ll find

• An informational reading defining inflation, explaining how it’s measured by the CPI, and why rising prices erode money’s value
  
• A key information table showing price changes (movie tickets, candy bars, bottled water) and percent increases for clear data analysis
  
• A real-life case study excerpt (“Miguel’s Budget vs. Rising Prices”) with two analysis questions to spark classroom discussion on budget adjustments and side-hustle top-ups
  
• Varied question formats—multiple-choice, matching, fill-in-the-blank, and short-answer—reinforcing terms like purchasing power, price index, and high-yield savings
  
• A concise teacher answer key for fast grading or use as a sub plan in any financial literacy or economics unit
  

Learning objectives

• Define inflation and its effect on teen budgeting and purchasing power
  
• Interpret CPI data to calculate percent price increases and adjust spending
  
• Develop strategies (budget adjustments, bulk buying, high-yield savings) to counteract inflation
  
• Analyze real-world examples to make informed financial decisions
  
• Apply knowledge of inflation trends to personal allowance and side-hustle planning
  

Standards alignment & ideal courses

• Common Core Math 7.EE.B.3: Solve real-life percent increase problems using CPI data
  
• Jump$tart Financial Literacy Std. 2: Budgeting and Saving (adjusting budgets for inflation)
  
• National Standards for Financial Literacy Std. 4: Saving and Investing (using high-yield accounts)
  
• Perfect for Personal Finance, High School Economics, Consumer Math, Life Skills, or as a sub plan
  

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