Everyone knows when it comes to prices, you have to know supply, demand...and Big Macs?

The Big Mac Index offers a relatable and semi-humorous way to grasp the global economics tied to everyday decisions, like buying a burger. By comparing the cost of a Big Mac across different countries over time, students can get a taste of currency valuation and purchasing power—concepts that are important in things like planning budgets and understanding international travel costs. It's a fun way to show that economic principles aren't just abstract theories but part of the fabric of our daily lives—even in the price of fast food.

Questions:

• What is the Big Mac Index, and what is it intended to illustrate?
• How has the price of a Big Mac changed in the United States from 2000 to 2023? What does this tell us about inflation in the U.S.?
• Select two countries with significantly different Big Mac prices. Discuss the possible economic, political, and social reasons for this disparity.
• If you were traveling abroad, how would you use the Big Mac Index to determine the value of your money in another country?

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Be sure to check out NGPF's Behavioral Economics unit for more insight into the psychology behind our financial decisions.

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Looking for more interactive resources? Be sure to check out the NGPF Interactive Library. 

About the Author

Ryan Wood

Ryan is the Partnerships and Adoption Manager for Next Gen Personal Finance’s midwest region. He brings his experience as a former teacher, curriculum designer, and sales and marketing professional to state organizations and school districts in supporting the implementation of their personal financial education efforts. He graduated from the University of Wisconsin-Green Bay and earned his teaching credential from Saint Mary’s University in Winona, Minnesota. He proudly taught at two rural high schools in Wisconsin before transitioning to curriculum design at NGPF, and is now excited to be on the front lines in delivering the best possible financial education in the midwest. He and his wife have three beautiful daughters, each of which inspire him to share the impact of being sound financial stewards both at home and as lifelong learners.