Advertisment

From Birkins To Budgets: How Fashion Makes Sense Of Finance

The ultimate beginner’s guide to understanding the economy, because being the best-dressed in the room is great, but being the smartest? Iconic!

64

Picture this: you’re on a date, wearing your CHANEL No5, the most stunning pair of Louboutin heels, and sipping the finest wine with a 'Man in finance, trust fund, 6’5, blue eyes.' You’re clearly the moment. But instead of getting lost in your eyes, he starts talking about the current economic situation.

You’ve already owned it with your look, your personality, and your aura. So why not add one more thing to the list? Economic brilliance.

Welcome to Econ 101: Fashion Girl Edition, because being financially savvy is the hottest accessory this season. We’re breaking down the jargon into language that fits your life and style.

Inflation

Inflation is a gradual decline in purchasing power, reflected in a broad rise in prices for goods and services over time. You’ve heard the term, now here’s how it actually plays out in real life.  

65

You know when your go-toCharlotte Tilbury Pillow Talk lipstick suddenly costs more than last year, and you’re like, 'Babes, it’s the same formula!' That’s inflation. 

In the fashion world, it’s why your favourite luxury candles or silk scarves get marked up. Sometimes, it’s because raw material costs increase (think silk shortages), shipping becomes more expensive, or brands adjust their prices to match the economy. Either way, your wallet’s crying, but your shopping habits aren’t stopping. (CLASSIC BADDIE BEHAVIOUR)

Per Capita Income

In essence, it’s the average income per person in a country—think of it as the national bank balance split between the squad. In the fashion analogy, it’s like asking: if we all pooled our paychecks, how many Birkins could the squad afford? Spoiler: it’s giving Zara, not Hermès.

PCI1

But here’s the interesting thing. Per capita income is a rough measure of a population's wealth or economic well-being. It doesn’t mean everyone is walking around with Gucci belts. It’s just the total national income divided by the population. Some people might be rocking head-to-toe Prada, while others are thrift queen-ing their way through life.

High per capita income means more spending on overpriced almond milk, low-fat, no-sugar, no-life lattes. Low per capita? Well, let’s just say the girls are waiting for payday before adding that Rare Beauty blush to their cart.

Recession

WHAT? You had taken a day off from workweeks in advance to watch the Paris fashion show LIVE, and suddenly it got cancelled? Or WAIT, a luxury brand is going on a discount?! This is your cue to say, 'The world is doomed.' 

via GIPHY

A recession is what happens when the economy takes a long nap, not the beauty sleep kind that leaves you glowing. People lose jobs, spending drops, and brands struggle to sell their latest collections. It’s all about survival: minimal spending, classic staples over bold trends, and making the most of your wardrobe instead of splurging. Sad girl vibes, but make it budget-friendly.

Circular Economy

You must’ve heard the saying, 'fashion and sustainability never go hand in hand.' But the circular economy is fashion’s attempt to clean up its act. Instead of the toxic buy-wear-dump cycle, it encourages reuse, recycling, and resale. Brands like Stella McCartney lead the charge by using plant-based leathers and eco-friendly dyes.

Stella Mc
Image Courtesy: Stella McCartney

Fashionistas swap, thrift, and resell to keep fashion in circulation. So your pre-loved Burberry trench coat gets a second life instead of cluttering a landfill, and honestly, who doesn’t love finding a vintage treasure that no one else has? (Thrift gods, if you're listening—manifest that FENDI BAGUETTE.)

Opportunity Cost: Think of it as the ultimate 'Would You Rather?' 

OC

Do you drop lakhs on a Dior saddle today, or save it for your European Summer? You can’t have it all (sadly), so every choice means giving something up.Economics calls it 'opportunity cost,' we call it 'choose your aesthetic era wisely.’

Smart girlies weigh their options. Do you invest in timeless staples or hop on the next micro-trend? Either way, it’s about knowing what you’re saying 'no' to when you say 'yes' to something else.

All this talk of bags and budgets has my hand itching to spend some of my hard-earned money, and hey, technically, I’m boosting the economy, right? Whether you’re buying, saving, or thrifting, just remember: A true fashion icon isn’t just stylish, she’s smart about her coins.

Related stories