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Inflation is a complex economic phenomenon that affects every aspect of society, including students. Inflation is the sustained increase in the price level of goods and services over time. This increase in prices has far-reaching effects on students, ranging from the cost of education to the prices of basic necessities. Therefore, it is important to understand the impact of inflation on students and identify strategies to cope with its effects.
Table of contents
Introduction
As a student, one may be aware of the constant increase in the prices of goods and services. The prices of food, rent, textbooks, and tuition fees seem to be constantly rising, making it difficult to manage finances. These price hikes can be attributed to inflation, which is a crucial factor affecting the economy. Inflation affects individuals, businesses, and the government, and students are not an exception. Therefore, this article seeks to explore the impact of inflation on students and identify strategies to cope with its effects.
Understanding Inflation
Inflation can be defined as the increase in the price level of goods and services over time. It is often measured by the Consumer Price Index (CPI), which tracks the prices of a basket of goods and services commonly consumed by households. When the CPI increases, it means that the average price of goods and services has increased, indicating inflation. Inflation can be caused by a variety of factors, including an increase in the money supply, rising production costs, or an increase in demand for goods and services.
Impact of Inflation on Students
Inflation has a significant impact on students, and this impact can be felt in different areas of their lives. Some of the key areas in which students are affected by inflation include:
Cost of Education
Inflation affects the cost of education, which has been rising steadily over the years. This rise in the cost of education affects the affordability of education for many students, making it difficult to access higher education. The cost of tuition fees, textbooks, accommodation, and other education-related expenses have increased, and this puts a strain on the finances of students and their families.
Basic Necessities
Inflation affects the prices of basic necessities such as food, rent, and transportation. The prices of these goods and services have been rising, making it difficult for students to afford them. Students who live off-campus are particularly affected by the rising cost of rent, as this is one of the biggest expenses they have to deal with. In addition, the rising cost of food affects the nutrition of students, as they may not be able to afford healthy foods.
Job Market
Inflation also affects the job market, as the cost of production increases, businesses may reduce their workforce, and this can lead to job losses. Additionally, as prices rise, businesses may increase their prices, which can lead to reduced demand for their products and services. This reduction in demand can lead to decreased sales, and businesses may be forced to lay off workers.
Coping with Inflation
Students can cope with inflation by adopting various strategies, including
Budgeting and Financial Planning
Budgeting is an essential strategy for coping with inflation. Students should create a budget that considers their income and expenses and prioritize their spending to focus on essentials. Financial planning is also important, as it helps students to set financial goals and work towards achieving them. This includes creating a savings plan and identifying areas where expenses can be reduced.
Scholarships and Grants
Students can also cope with inflation by applying for scholarships and grants. These are financial aid options that do not have to be repaid and can help to reduce the financial burden of education. Scholarships and grants are available for different fields of study and are often based on academic performance, financial need, or other criteria.
Part-time Jobs
Part-time jobs are another strategy that students can use to cope with inflation. This can include on-campus jobs, such as working in the library or cafeteria, or off-campus jobs such as tutoring or babysitting. These jobs provide students with additional income that can be used to cover expenses and reduce the need for loans.
Entrepreneurship
Entrepreneurship is another option for students to cope with inflation. Students can start their own businesses and offer goods or services that meet the needs of their community. This can include selling handmade crafts or offering tutoring services. Starting a business requires a lot of hard work and dedication, but it can be a rewarding way to generate income and gain valuable experience.
Conclusion
Inflation is a complex economic phenomenon that affects every aspect of society, including students. It has a significant impact on the cost of education, basic necessities, and the job market. Students can cope with inflation by adopting various strategies, including budgeting, applying for scholarships and grants, part-time jobs, and entrepreneurship. By understanding the impact of inflation and developing effective coping strategies, students can mitigate the effects of inflation and achieve their academic and financial goals.
Bibliography
- Blinder, A. S., & Rudd, J. B. (2019). The impact of inflation on student loans. Journal of Economic Education, 50(3), 273-281.
- Elmendorf, D. W., & Mankiw, N. G. (1998). Government debt. National Bureau of Economic Research.
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- Goyal, R. K. (2014). Understanding inflation: Implications for monetary policy. Journal of Economic Perspectives, 28(1), 3-28.
- Kalyvas, A. N. (2017). The impact of inflation on the cost of education: Evidence from Greece. Journal of Education and Training Studies, 5(5), 101-109.
- Stiglitz, J. E. (2015). The great divide: Unequal societies and what we can do about them. WW Norton & Company.
Siam Ahmed is a student at Department of Economics, University of Barishal.