Neat data visualization from the JP Morgan Chase Institute showing how everyday spending is changing in 15 metro areas on a month to month basis since June 2014:

What is being measured?

• From Chase: “The Local Consumer Commerce Index (LCCI) is a measure of the monthly year-over-year growth rate of everyday debit and credit card spending by over 50 million anonymized Chase customers across 15 cities in the US The LCCI is an alternative view of the health and vibrancy of the US consumer and the places where consumers and businesses operate.”
• Click on a city and you will see how spending varies by age, income level, by spending category, and by business size

Here’s what’s been going on in San Francisco in March 2016 as compared to a year ago (hint: it’s not looking good):

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Questions for your students:

• What data is used to calculate this index? Do you think it paints an accurate picture? Why or why not?
• Why do you think consumer and small business spending is used as a proxy for the health of the economy?
• Look at the data for the city you live in (or nearest to you).
  • What have been the trends over the past 22 months?
  • What product types have been spending less on? more on?
  • Which age group has had the largest spending increase? smallest increase? Why do you think this is the case?
• How does the national level data match up with the GDP figures from the last two years? Does the LCCI seem to be underestimating or overestimating the rate of economic growth in the country?

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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