Answer: For all items captured in the CPI (Consumer Price Index), 55%

A few questions for your students (you knew these were coming!):

• Which price changes in the chart above surprise you?
• Which ones have you personally heard your parents (or guardians) discuss (complain about)?
• What types of costs do you find increasing the most: Needs or Wants?
  • Webquest: How much have median wages increased over this same time period?
  • How do you think the average college graduate has dealt with these significant price increases?
• What headline would you create to summarize this chart?
• How can TV prices really be down 96%? When last I checked they still cost hundreds of dollars?
  • My hunch is that this is tied to a quality measure that is incorporated in the CPI (interesting Atlantic Monthly article here). The big screen TVs are a lot better than the black and white TVs of my childhood.

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.