Have you ever heard someone say, “Back in my day, you could buy that for a penny!”?
Hard to believe, but a penny used to buy something enjoyable! Let’s time travel and see how prices have changed!
The Good Old Days of the Penny
A long, long time ago (we’re talking about the 1900s to 1950s), a penny was actually worth something.
Here’s what just 1 penny could buy:
🍭 A small bag of sweets from the corner shop
📰 A local newspaper
🎠 A ride on a fairground horse
💌 A postage stamp to send a letter
Sounds pretty amazing, right? But why was everything so cheap back then? The answer is something called inflation.
What is Inflation (and Why Should You Care)?
Inflation happens when prices slowly go up over time. This means that the same thing you could buy for £1 a few years ago might cost £1.50 today. It’s kind of like when you're building with LEGO and the tower keeps getting taller and taller—the prices just stack up year after year.
Why does this happen?
People get paid more, so shops charge more.
Things cost more to make and deliver.
New technology makes some things better (and more expensive!).
Let’s Compare!
Item | Cost in 1950 | Cost Today (2025) |
Chocolate bar 🍫 | 6p | £1.20 |
Bus ticket 🚌 | 10p | £2.50 |
Cinema ticket 🎬 | 25p | £8.00 |
Loaf of bread 🍞 | 5p | £1.40 |
Imagine getting into the cinema for 25p. You could probably find that much in your sofa cushions!
What Would £1 Buy Back Then?
In the 1950s, £1 was like having £30 today. You could fill your shopping bag with goodies, pay for a meal out, and still have change.
Today? £1 might get you a small snack or a sticker sheet.
Why Does This Matter?
Understanding how prices change over time helps you make smart choices with your money.
It teaches you:
✅ Why saving is important
✅ Why £5 today might not buy the same stuff in 10 years
✅ How to budget for the future
It’s also pretty cool to think about how your grandparents managed their money, right?
Fun Challenge:
Ask someone older (like a parent, grandparent, or teacher) these questions:
What could £1 buy when you were my age?
What’s the cheapest thing you remember buying?
What do you think is too expensive now?
You might discover some surprising answers!
Final Thought
Next time you hear someone say, “Things used to cost just a penny!”, you'll know the truth. Prices change, but smart money habits—like saving, spending wisely, and knowing your history—never go out of style.
💡 Question for you:If you could time travel to any year to do some shopping, what year would you pick and why?
Learn more on the Inflation with Smartmonies! Use code SMARTSAVER for £10 off your lesson!
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