What are higher costs?

Higher costs mean you have to pay more money for something than before.

Imagine you love eating candy every day. One day, your favorite candy costs $1 per piece, that's easy to buy with your allowance. But then, the store says, "We're raising our prices!" Now each piece of candy costs $2, and that’s higher cost, you need more money to get the same amount of candy.

Think about buying toys. If a toy car used to be $5, but now it's $10, that’s a higher cost. You might have to save up for longer or choose fewer toys because your money doesn’t go as far anymore.

Sometimes, the store has to pay more for the candy or the toy, maybe the factory made less candy, or it took more work to make the toy. So they pass that higher cost on to you.

Just like when your allowance stays the same but prices go up, suddenly, you can’t buy as much candy or toys!