Anna’s Story – The Salary Hike That Wasn’t

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 CBS LINE

Volume 3.9 

                                                                                       


 It was a hurry-burry morning. Anna rushed into the kitchen, her eyes still half-closed,while Amma  flipped dosas on the tawa.

The smell of roasted batter filled the air. Anna’s father walked in, beaming.

“Good news, everyone! My company has increased my salary from ₹30,000 to ₹35,000!”

Anna’s mom clapped her hands. “At last! Now we can buy that new fridge.”

Anna jumped. “And maybe I can join the art class I’ve been asking for!”

Breakfast suddenly felt more delicious. The dosa tasted crispier, the chutney sweeter, and even the tea stronger. Everyone imagined a richer life ahead.

Days passed. The fridge was bought, Anna joined the art class, and her father proudly handed over the new salary slip every month.

But slowly, Amma began to notice something odd. The milkman now demanded ₹65 instead of ₹60. Bus fare had risen from ₹12 to ₹15. The dosa batter that once cost ₹40 was now ₹50. Anna’s school books were pricier this year, too.

One evening, as she returned from the market, Amma placed the shopping bag on the table with a sigh. “Do you realize, with all these price hikes, our expenses are almost as heavy as before? That extra ₹5,000 feels invisible.”

Anna tilted her head. “Invisible money?”

Her father explained:

“See, Anna, we’re caught in something called the Money Illusion. We feel richer because the number in my salary slip increased. But we forgot to check what that money can actually buy. Prices have been rising too — inflation is quietly eating away the extra income. So in real terms, we may not be richer at all.”

Anna frowned. “So it’s like this — if I used to buy 5 ice creams for ₹50, and now I still get only 5 ice creams for ₹55, then even if you give me more money, I’m not really richer?”

Her father smiled. “Exactly! The number grew, but the value didn’t.”

The room fell silent. That night, Anna wrote in her diary:

“Sometimes money tricks us. We think we have more, but it’s just numbers playing a game. Maybe I should be careful — my art class fees may also rise next year. Are we really richer? Or just fooled by money’s illusion?”

And with that thought, she drifted to sleep, already curious about what other “hidden tricks” the economy was playing on her family’s daily life. 

Fathima Sana.P
MSc in Econometrics and Financial Technology

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