What did it cost a decade ago?
All I need is a bottle of Martini & Rossi Spumante, a pack of batteries, and a can of coffee. That is what you may have heard if Steve Martin was doing his best impersonation as The Jerk telling you what cost you less than it a decade ago.
As you build your financial plan, you will always have to consider a guesstimate for inflation. While most financial planners use some whole number such as 3% or 4%, those with newborn children should pay special attention to the past decade where the cost to raise a child to the age of 18 went up over 75%! Or, if you are the type that likes a lot of entertainment in your budget, keep in mind the skyrocketing cost of tickets to your favorite events.
Inflation can often be the silent killer for retirees, but is really generation X and Y who need to pay close attention over the next decade. With already large mortgages and debt payments, the daily cost of living could sneak up on you to deplete your hard earned savings. Now is the time at the beginning of this decade to build a smart spending plan, learn money saving tips to purchase items at the best cost, and keep in check the rule of paying yourself first. See the results from the last decade:
|
Product |
1999 price |
2009 price |
Change |
| Observation deck, Empire State Building, adult | $4.00 | $20.00 | 400.00% |
| Gold, one ounce | $279.11 | $1,106.00 | 296.26% |
| New York Times daily edition | $0.75 | $2.00 | 166.66% |
| Slurpee, largest, 7-11 | $0.99 | $2.12 | 114.14% |
| Superman comic book | $1.99 | $3.99 | 100.50% |
| Toll (auto), Golden Gate Bridge | $3.00 | $6.00 | 100.00% |
| Gallon of gasoline | $1.30 | $2.56 | 96.92% |
| Apple (AAPL) stock, one share | $102.81 | $198.10 | 92.69% |
| Average ticket price, Boston Red Sox | $28.33 | $50.24 | 77.34% |
| Cost to raise newborn to age 18 | $165,630.00 | $291,570.00 | 76.04% |
| Disneyland, one day adult ticket | $41.00 | $72.00 | 75.61% |
| NYC YMCA summer membership | $125 | $200 | 60.00% |
| Average expanded basic cable (per month) | $31.22 | $49.65 | 59.03% |
| Average ticket, NFL Denver Broncos | $49.00 | $76.65 | 56.63% |
| ATM transaction cost | $2.28 | $3.54 | 55.26% |
| Babysitting per hour | $7-$10 | $10-$15 | 50.00% |
| Budweiser, six pack of cans | $4.01 | $5.99 | 49.38% |
| Home value, average | $119,600.00 | $173,100.00 | 44.73% |
| Electricity per 500 kwh | $45.38 | $65.21 | 43.70% |
| Movie ticket | $5.06 | $7.18 | 41.90% |
| Time magazine, newsstand | $3.50 | $4.95 | 41.43% |
| Aspirin, Bayer, 100-count | $3.47 | $4.81 | 38.62% |
| Sugar, 5 lb. | $2.13 | $2.90 | 36.15% |
| Cheerios, one box | $3.89 | $5.15 | 32.39% |
| Stamp, USPS, 1st class | $0.33 | $0.44 | 33.33% |
| Cigarettes, Marlboro, per pack, Calif. | $4.65 | $5.95 | 27.96% |
| Harley-Davidson 883 Sportster | $5,595.00 | $6,999.00 | 25.09% |
| Average cell phone bill | $40.24 | $49.57 | 23.19% |
| McDonald’s Big Mac | $2.50 | $2.99 | 19.60% |
| Levi’s, men’s, 505 | $36.99 | $44.00 | 18.95% |
| Coca-Cola, one liter | $1.14 | $1.34 | 17.54% |
| Ty Warner penthouse, Four Seasons, NYC, per night | $30,000.00 | $34,000.00 | 13.33% |
| Car, Toyota Camry,base model | $17,518.00 | $19,395.00 | 10.71% |
| Wedding, average cost | $18,900.00 | $20,398.00 | 7.93% |
| Nike shoes Jordon vs. LeBron James | $150.00 | $160.00 | 6.67% |
| Gallon of milk | $2.88 | $3.05 | 5.90% |
| Top 100 Music CD | $13.65 | $13.98 | 2.42% |
| Bestseller novel, Grisham vs.Patterson | $27.95 | $27.99 | 0.14% |
| Tom Cruise earnings, per movie | $20 million | $20 million | 0.00% |
| Windows 1998 vs Windows 7 | $209.00 | $199.99 | -4.31% |
| Coffee, Maxwell House, 34.5 oz. | $9.99 | $9.49 | -5.01% |
| Average domestic airfare | $329.00 | $301.00 | -8.51% |
| Credit card average APR | 15.07% | 13.71% | -9.02% |
| Batteries, AA, 4, Energizer | $3.99 | $3.49 | -12.53% |
| Wal-Mart stock | $69.12 | $52.80 | -23.61% |
| $100,000 mortgage, 30 year fixed, total cost | $265,154.54 | $184,549.59 | -30.40% |
| iMac desktop computer, Apple | $1,499.00 | $999.00 | -33.36% |
| Hummel “To Market” #49 figurine | $120.00 | $79.95 | -33.38% |
| Martini and Rossi Spumante, 375 ml | $12.99 | $8.29 | -36.18% |
| Prime rate | 8.50% | 3.25% | -61.76% |
Source AOL Wallet POP
While there is no Y2K scare in sight for the decade ahead, we have a scarier proposition. DTD, which is the decade of trillions of debt that is now called our federal deficit. Think now about your financial plan, and if you’re smart you will plan using assumptions that are more conservative than the last decade of inflation.
Notes: 1999 prices are in 1999 dollars, 2009 prices in 2009 dollars. For some items, a true apples-to-apples comparison is not possible, since the product/service has evolved; the iMac, for example. The earlier prices were taken from the last half of 1999 or the first half of 2000. For statistics that are only gathered annually, we have used the most recent figure available; usually at 2008 year end. (source AOL wallet POP)
check out these other money saving articles Should you lock in your natural gas rates? , Save More For Retirement? – 401(k) Limits , 9 financial tips for Generation Y , So you wanted to have a child?
Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS® Co-CEO and Founder oXYGen Financial, Inc.
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oXYGen Financial, Inc. co-CEO Ted Jenkin is one of the foremost knowledgeable professionals in giving financial advice to the X and Y Generation.
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