What My Dad Taught Me About Inflation

Today, I was buying lunch at the hawker centre and paid $3.00 for my meal.

After handing in my money to the stall owner, I had a flashback where I recalled my dad's frequent lament about how a bowl of wanton mee used to cost only $0.20 to $0.30.

I also remembered how I used to respond. "Aiyah! Last time things very cheap la..I know.."

I remember seeing the pain in his eyes as he always made that lament. And now I guess I know the reason why.

He was not recalling the days when things used to be cheap or cheaper. Rather, he was feeling the pain at how the cost of living has gone UP and UP over the years.

It was not too many years ago that my dad could get a meal at $0.30 and a drink perhaps at a few cents. But those days are over and now the price of things have gone up. Economists call this inflation. My dad calls it : " Last time this only used to cost XXX cents, now it is a few dollars."

Things were not cheaper back then. Things are just more expensive now.

I can only imagine myself lamenting to my son in the future 20 years down the road....

Imagine the year 2030....

I am walking down the food court with my son who wants to order a plate of chicken rice. Then, I lament and say:

"Last time chicken rice used to cost me $3, now one plate costs me $30!!!"

I can imagine my son staring blankly back at me and giving me the same reply that I gave my father...

"AIYAH, last time things are cheap.. but last time is last time LAH!"

Have you factored in inflation into your retirement plans? If you have not, be prepared for a rude shock when you retire.