Inflation Explained: How to Protect your Money Lesson

Students learn a lesson on what inflation is, why it happens, and how it impacts their finances. Discover practical tips to protect money from rising prices.

In this lesson, students will learn about what inflation is and how it affects the prices of goods and services. They will discover why inflation happens, how it’s measured, and its impact on daily life and finances. The lesson explains the causes of inflation, including demand, supply, and government actions. Students will also find out how inflation affects savings, investments, and debts, and get tips on how to stay ahead of rising prices. They will understand the role of governments and central banks in controlling inflation through interest rates and the Consumer Price Index (CPI), and learn practical strategies to protect their money.


Use this video lesson on the inflation. Learn basic related concepts of

  • Budgeting
  • Investing
  • Savings
  • Money Management
  • Financial Planning
  • Investment Strategies
  • Economic Understanding
  • Impact on Loans


7-12th grades. High School. Adult Education.


30-45 Minutes. It may be necessary to adjust the lesson plan and allocate more or less time to certain topics, depending on the needs and interests of the students. More in-depth lesson plan below will be longer.


Hand out the worksheet below (see the GET LESSON button near the bottom of the page).

Show students the video and have and have them complete the worksheet.  Review the questions on the worksheet.  For a more in-depth lesson, complete the lesson plan below.

Inflation Explained: How to Protect your Money | Simple Beginners Guide

After watching the video, ask students to summarize the main points made in the video.


Lesson Plan: What is Inflation?



  • Understand the concept of inflation and its impact on the economy and daily life.
  • Learn the causes of inflation and how it is measured.
  • Identify ways to manage personal finances in the context of inflation.

Materials Needed:

  • Video: “What is Inflation?”
  • Projector or screen to show the video
  • Handouts of discussion questions
  • Activity worksheets
  • Quiz on inflation

Lesson Duration:

  • Total Time: 60 minutes
  • Video Presentation: 10 minutes
  • Discussion: 20 minutes
  • Activities: 20 minutes
  • Quiz: 10 minutes

Lesson Outline:

1. Introduction (5 minutes)

  • Briefly introduce the topic of inflation.
  • Explain the objectives of the lesson.
  • Ask students if they have ever noticed the prices of goods and services increasing over time.

2. Video Presentation (10 minutes)

  • Play the video “What is Inflation?”
  • Ask students to take notes on key points while watching the video.

3. Discussion (20 minutes)

  • Divide the students into small groups and provide each group with discussion questions.
  • Discussion Questions:
    • What is inflation and how does it affect the purchasing power of money?
    • What are the main causes of inflation mentioned in the video?
    • How is inflation measured and what is the Consumer Price Index (CPI)?
    • How can inflation impact people differently depending on their income or investments?
    • What are some strategies to protect oneself from inflation?
  • After group discussions, have each group share their insights with the class.

4. Activities (20 minutes)

  • Activity 1: Inflation Impact Analysis
    • Provide students with a list of common goods and services (e.g., groceries, movie tickets, gas).
    • Ask them to research and compare current prices with prices from 10 years ago.
    • Have students calculate the percentage increase for each item.
    • Discuss how these price changes affect their daily lives and spending habits.
  • Activity 2: Budget Adjustment for Inflation
    • Give students a sample monthly budget.
    • Ask them to adjust the budget to account for a hypothetical 5% inflation rate.
    • Have them discuss how they would prioritize their spending and what changes they would make.

5. Quiz (10 minutes)

  • Distribute a quiz based on the video and discussion.
  • Collect quizzes and review the answers with the class.

6. Conclusion (5 minutes)

  • Summarize the key points discussed in the lesson.
  • Encourage students to stay informed about economic news and its impact on their personal finances.
  • Answer any remaining questions from the students.

Extension Activity:

  • Ask students to write a short essay on how they plan to manage their finances in an inflationary environment.
  • Encourage them to include strategies discussed in the lesson and their personal reflections.

Lesson Resources

Get Lesson


For additional related lessons, explore our main category pages:

Categories Borrowing Money, Budgeting, Economics, Saving & Investing, Spending Money, Tags , , , , ,

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