Purchasing power

Purchasing power is how much stuff you can buy with the money you have. For example, if you have $10 and you want to buy a toy that costs $10, you have enough money to buy it! This means you have a lot of purchasing power. However, if the same toy costs $20, you won't have enough money to buy it. This means you have low purchasing power. Generally, if prices keep going up, you will have less purchasing power because it takes more money to buy the same things.