Beware the recession

“Woah, that’s how much it costs to fill up my car? Stock X is charging how much for those Jordans? Has that Haverford hoodie gotten more expensive since the last time I bought one?” 

Some upper school students may contemplate these questions on a daily basis, while others may pay little attention. No matter where you stand, inflation is the highest it has been since 1981

So, what’s causing this, and should students be worried? 

The former question can be answered by one word: “recession.” A recession happens when there is a big decrease in consumer spending. In our case, it was caused by the COVID-19 pandemic, the Federal Reserve raising inflation to ensure a “soft landing” in the aftermath of the pandemic, and mass unemployment. These events have left a long-lasting impact on consumers and investors around the world. 

New York gas prices – David Wilson via Wikimedia Commons

Students shouldn’t be worried, but rather more aware. As students of the upper school, we begin to transition into our adult lives. This comes with responsibilities, especially concerning money. Additionally, Fifth and Sixth Formers may have cars, which need gas, and gas costs money. Because of this “recession,” gas costs students more money, and it can start to add up to a fairly large amount. Upper school students have more freedom, and that relates to buying certain products, such as clothing, sneakers, or food when dining out with their friends. Some students may have to draw back from fantasizing about a certain shoe or hoodie that they desire because of how much it costs due to the increased prices they will pay because of inflation.

As the effects of the recession continue to reveal themselves, students must be financially aware.

Talan maury ’26

Students may be starting to experiment with investing in the stock market and/or in cryptocurrency. In a recession, stocks drop, which can be seen as a bad or good thing. It is a potentially bad thing because of the risk that it might continue to go lower if the recession continues. Or it could be a potentially good thing for individual investors, because as most stock brokers will tell you, “Buy low, sell high.” As the effects of the recession continue to reveal themselves, students must be financially aware.