You've probably heard your parents talk about inflation or watched a newscast where the presenter talked about it. If you are not aware of this matter, stay tuned and we will explain what this inflation is.
Every month, Carlos receives from his parents the amount of R$ 150.00 as an allowance for helping with housework, washing the lunch bowls, cleaning the garage, mowing the lawn, among other responsibilities related to cleaning your residence.
Whenever he receives his allowance, Carlos withdraws R$ 50.00 to spend at the mall on food, cinema and electronic games, and the rest deposits in a savings account in order to buy a modern computer.
The R$ 50.00 collected by Carlos is enough to have a snack, play video games and watch two movies a month on Sundays. See Carlos' expenses:
Snack = R$ 20.00
2 movie tickets = R$16.00
Electronic games = BRL 14.00
In a given month, Carlos realized that there was still a movie to watch, but only R$3.00 of the total money was left, which was not enough to buy a ticket to the cinema. Curious, he decided to check the expenses for that month. He noted that the expenses were:
Snack = BRL 24.00
Electronic games = BRL 15.00
1 movie ticket = R$8.00
When comparing the expenses of the current month with the expenses of the previous months, he found that the money spent on snacks and electronic games had been higher. That way, in order for him to continue watching two movies a month, he would have to spend $5.00 more compared to previous months. The amount of R$ 50.00 was not enough to carry out the same entertainment.
This price increase is called inflation. Inflation has the power to devalue money, and that is what happened with Carlos' money. Leisure expenses became more expensive, causing Carlos to spend more money to fulfill the same entertainment as in previous months.
by Mark Noah
Mathematical
Kids School Team