Financial Planning and Analysis

How Much Was a Quarter Worth in 1925?

Explore the actual worth of a 1925 quarter, revealing its purchasing power and how that value translates over time.

The value of money fluctuates over time, meaning a specific amount in the past held different purchasing power than it does today. Understanding what a quarter could buy in 1925 provides insight into the economic realities of the “Roaring Twenties.” Examining these historical prices illustrates the significant shift in monetary value and consumer spending over a century.

What a Quarter Could Buy in 1925

In 1925, a quarter had significant purchasing power for common items. A 24-ounce loaf of bread typically cost 10 to 12 cents, allowing a quarter to buy two loaves with change. A first-class U.S. postage stamp was 2 cents, enabling multiple letters to be mailed for a fraction of a quarter.

Everyday indulgences were also affordable. A candy bar sold for 5 cents, allowing purchase of five bars with a quarter. A bottle of Coca-Cola also cost 5 cents, providing five drinks for the same amount. City transportation was inexpensive, with a streetcar ride generally costing 5 cents.

Entertainment was accessible; a movie ticket ranged from 25 to 40 cents, making a single outing cost around a quarter. A daily newspaper cost as little as 2 cents. A gallon of gasoline was priced around 20 to 22 cents. These examples highlight that a quarter in 1925 provided tangible value, covering basic necessities and small luxuries.

The Economic Landscape of 1925

The year 1925 was part of the “Roaring Twenties,” a decade characterized by economic prosperity and significant social change in the United States. This period saw a general increase in industrial production and a rise in the standard of living for many Americans. The overall economic sentiment was largely optimistic, fueled by technological advancements and burgeoning consumerism.

While inflation was present, it was relatively modest compared to other historical periods. The average inflation rate in 1925 was 2.34%. This rate influenced the cost of living and the purchasing power of wages. The general stability in prices contributed to the perception of widespread affluence during this time.

Comparing 1925 Quarter Value to Today

Translating the purchasing power of a 1925 quarter into today’s monetary terms requires considering inflation’s cumulative effect over the past century. The Consumer Price Index (CPI) is a primary tool for measuring changes in the price level of consumer goods and services. It reflects how the cost of a “basket” of goods has changed over time.

Using inflation calculators based on the CPI, 25 cents from 1925 is equivalent to approximately $4.61 in 2025. This substantial increase, representing a cumulative price increase of over 1,700%, demonstrates how inflation erodes money’s value. Something purchased for a quarter in 1925 would, on average, cost nearly $5 today. For example, a modern candy bar costs around $1.50 to $2.00, compared to 5 cents in 1925. A gallon of gasoline, about 20-22 cents then, now exceeds $3.00 or $4.00.

It is important to recognize that these comparisons are estimates, as the specific goods and services available, as well as consumer habits, have changed considerably since 1925. The “basket” of goods used for CPI calculations is periodically updated to reflect current consumption patterns. However, the estimated equivalent value provides a clear understanding of the dramatic shift in a quarter’s purchasing power across generations.

Previous

How Much Do Sperm Donors Make in Texas?

Back to Financial Planning and Analysis
Next

How to Find Out If There Is a Life Insurance Policy on Someone