The Impact of Inflation on Your Finances - A
Friendly Café Conversation
Jagruti, Swapna and Shri finally managed to meet after months
of failed plans. At one point, the three of them sat in the same office,
occupying adjoining desks, chatting all day. Now each was in a different
organisation, juggling responsibilities, deadlines and life. It took multiple
reschedules to land even this short coffee break, but the joy of meeting again
made every minute worth it.
“Have you noticed how our mothers keep reminding us about
prices from their days?” Jagruti laughed, stirring her cappuccino. “Mine keeps
saying, ‘In our days, this used to cost just ten rupees, now look at the
price!’”
Swapna nodded. “Same here! And honestly, sitting here today,
ours costs ₹250. I’m sure twenty years later our kids will hear the same
dialogue from us.”
Shri leaned in. “Actually, now that you mention it, imagine
what this cappuccino will cost after twenty years. If inflation averages about
6% a year, ₹250 becomes nearly ₹800. If it’s 8%, it crosses ₹1,200. Crazy,
right?”
The table fell silent for a moment, the numbers were an
eye-opener.
“That’s inflation,” Shri continued. “It’s not just a word our
parents throw around. It silently increases prices year after year, and unless
our income and investments grow faster than inflation, we’ll feel constantly
short of money.”
Swapna pulled out her phone calculator. “So inflation isn’t
the same for everything, right? Food inflation, fuel inflation, lifestyle
inflation… they’re all different.”
“Exactly,” Jagruti said. “And the scariest one, education
inflation. I was checking fees for MBA courses abroad for my cousin. It’s going
up at 9–12% yearly. And then there’s forex inflation, INR losing value against
USD. That makes foreign education even more expensive.”
“So if someone plans for higher education overseas, they’re
not fighting just inflation - they’re fighting double inflation,” Swapna
concluded.
The three of them paused again, sipping their cappuccino with
a new level of awareness.
“Let’s think practically,” Shri added. “If we simply keep
money in a savings account at 3–4% interest, but inflation is 6–7%, we’re
getting poorer every year without realizing it. The money grows, but its
buying power falls.”
“So the goal isn’t only saving,” Jagruti said. “It’s investing
in places that beat inflation - equity mutual funds, index funds, high-quality
bonds, maybe gold allocations - basically a basket that grows faster than
prices rise.”
“Right!” Swapna smiled. “We don’t need to be finance experts.
We just need to make sure our investments are in the right direction, not
losing to inflation.”
The girls finished their coffee with a collective nod.
Inflation wasn’t just a boring economic term anymore, it was a reminder that
money must work to stay relevant.
“Someday,” Swapna joked while getting up, “our kids will sip
their overpriced cappuccinos and laugh at our ₹250 story. But if we invest
right, we’ll be able to pay the bill without worrying!”