With the highest inflation levels since 1990 and a 6.2% increase in prices for consumer goods, Americans are expressing concern about the future of their finances. The Direct Express® Financial Education Center has a new module to address the impact of inflation and is an excellent resource for cardholders during these challenging times.
Inflation is usually tied to circumstantial factors and can shift quickly. It’s apparent our current level of inflation is predominantly a result of COVID-19. Many Americans have significantly elevated their spending habits, driving up the demand for goods causing inflation. While increased spending is a sign of a healthy economy, it can have negative effects when the economy isn’t prepared to be inundated by this demand – causing supply chain back-up.
Inflation can have both negative and positive effects on the economy and on the everyday lives of Direct Express® cardholders. The new inflation modules outline topics that can provide support including: the price of consumer goods, rent costs and how to navigate savings account shifts and how to navigate them.
The new Direct Express® Financial Education Center module also features the positive effects of inflation. High prices may not sound like a good thing, but there are some positive outcomes during inflation spikes. The new module encourages cardholders to think outside the box to see the benefits. Negotiating a higher wage can be easier, unemployment goes down and some see times of inflation as a good time to invest.
No one knows exactly what the future will look like, most economists and financial advisers encourage individuals to not make any hasty decisions or major lifestyle changes during times of inflation. It’s always good advice to save money for an emergency…the only thing certain about the economy is that it never stays the same for long.
SOURCE: Direct Express®