Lifestyle inflation

In this B1-B2 ESL lesson on lifestyle inflation (or lifestyle creep), and spending habits, students explore how people’s lifestyles often become more expensive as their income increases. Learners discuss saving money, spending priorities, financial goals, and the difference between genuine needs and unnecessary luxuries. They also learn and practice the grammar structure “used to” for describing past habits and past situations. Other lessons you might like are “Can money buy happiness“, “Can you retire in your 30s?“, “Money mindsets: from cheap to frugal“, “Throwaway culture“, and “Phrasal verbs: money“, “Idioms: financial trouble“.

Activities overview

Speaking – Lead-in Discussion: Students begin by discussing personal spending habits, common monthly expenses, and the challenges of saving money. They reflect on whether saving or enjoying money is more important and consider why some people struggle financially even with a good income.

Reading – Two Friends, Two Lifestyles: Students read a short text about Elena and Marco, who lived very simply as university students but now spend much more money after getting good jobs. The reading introduces the idea of lifestyle inflation in a relatable and engaging way, as well as the grammar structure “used to”.

Grammar – Used To: Learners review how to use “used to” and “didn’t use to” to describe past habits and past states. They analyze examples in the reading text. To practice, learners complete a table comparing how they used to save money in the past with how they live now. They discuss areas such as travel, housing, food, clothing, entertainment, technology, and gifts.

Vocabulary – Money and Spending: Students learn and practice useful vocabulary related to personal finance, including expenses, budget, afford, upgrade, splurge, treat yourself, disposable income, fixed expenses, pay raise, financial goals, financial cushion, and standard of living. They complete various practice and speaking activities to activate the target vocabulary.

Listening – Video on Lifestyle Inflation: Students watch the video “The Silent Thief of Your Pay Raise” in several stages. They identify common examples of lifestyle inflation, complete missing words from a transcript, and explore practical strategies for avoiding lifestyle creep.

Speaking – Wants vs. Needs: Learners discuss whether certain purchases are necessary upgrades or unnecessary splurges. They evaluate situations such as buying luxury cars, upgrading flights, changing smartphones, or paying for delivery every day.

Discussion – Reversing Lifestyle Inflation: Finally, students examine how difficult it can be to reduce spending after becoming used to a more expensive lifestyle. They discuss which habits would be hardest to give up and reflect on how they would react if their income decreased.

For more speaking practice, you can use printable discussion cards or role-play activities about money, saving, and spending habits.