Every fall, pumpkin spice takes over — from lattes to candles to cereal. The Pumpkin Spice Latte (PSL) in particular has become more than just a drink; it’s a seasonal ritual. As a PSL lover myself, I’m not here to discourage a comfort beverage that helps ease the transition from late sunsets and beach days to cooler weather. But as tasty as it is, PSL fans may have noticed something scarier than ghosts this season: the price keeps creeping up. Let’s see how the cost of our favorite fall drink stacks up against inflation…and even the stock market.
The Price of a PSL Over Time
When Starbucks first introduced the Pumpkin Spice Latte in 2003, it cost around $3.95. In 2024, depending on size and location, it can run $6–$7+. That’s roughly a 70–80% increase over two decades.
During the same period, general U.S. inflation has been about 65%. In other words, the PSL has risen a little faster than inflation — meaning our beloved fall habit is technically losing to the economy. If it had only tracked inflation, a PSL today would be closer to $6.50 instead of $7+.
The Marketing Magic
So how does Starbucks get away with it? Two words: brand marketing. Add a dash of nostalgia and a sprinkle of exclusivity, and you’ve got the perfect recipe to keep consumers coming back. The trick is that it feels like it’s “just for a few weeks”… except Starbucks has extended the PSL season earlier into August and later into November. That scarcity, combined with tradition, makes fall feel incomplete without at least one latte.
It’s not just the drink that’s addictive — it’s the idea of fall itself being bottled up in a cup. Which means when you’re buying a PSL, you’re not just paying for coffee, milk and spices. You’re paying for tradition, emotion, and clever branding. Starbucks isn’t just selling a latte; it’s selling a season.
PSL vs. Investing
Now, let’s be clear: I love a PSL. This isn’t about boycotting small joys or pretending that skipping lattes will make you a millionaire. Financial health is about balance.
So here’s an idea: for every PSL you buy this fall, match it with a small investment. Toss the same amount into a stock, ETF, or even just a savings account. By the time PSL season rolls around next year, you’ll have grown your own little “pumpkin portfolio.”
Or, if you really want to pack that pumpkin portfolio, try this: instead of buying 10 lattes this fall, buy 5. On the “off weeks,” set aside that $6 to invest or save.
That might not sound like much, but here’s where compound interest comes in. Compound interest happens when your money earns interest — and then that interest itself starts earning interest. Over time, the growth builds on itself like a snowball rolling downhill.
So if you invested $30 each fall (the cost of 5 skipped lattes) and kept doing it every year, your money wouldn’t just sit there. With average stock market growth, after 10 years you could have a few hundred dollars, and after 20 years, thousands — all from simply alternating between a PSL and an investment.
The lesson isn’t that you should skip treats altogether. It’s that small, consistent steps — paired with the power of compounding — can turn even your fall tradition into a long-term financial win.
The Takeaway
We all know the PSL is, at its core, a clever marketing gimmick — but we love it anyway, and that’s okay. The lesson isn’t to give up on small joys, but to recognize how inflation and branding influence what we pay. By pairing seasonal spending with consistent investing, you can enjoy your pumpkin spice today while building financial security for tomorrow.
Student Reflection 🍂
- If you spent $30 this fall on PSLs and invested $30 instead, what could that grow into after 10 years? After 20?
- How does compound interest make your money grow faster than just setting it aside in a jar?
- Could you try a “latte week / saving week” habit in another part of your budget?