Inflation can seriously hurt the value of our savings. It might be hard to understand how this works, especially when it comes to percentages. The main issue is that even if our savings grow, we might not be able to buy as much with that money because prices are going up.
What is the Inflation Rate?
The inflation rate shows how much prices go up, and it's usually told as a percentage. For example, if the inflation rate is 3%, something that cost 103 this year.
Finding Out How Much Our Money is Worth
To really know how inflation affects our savings, we need to figure out the real value of our money. Let’s say you have $1,000.
By thinking about these points, we can get a better grasp of how inflation changes the way we see our savings.
Inflation can seriously hurt the value of our savings. It might be hard to understand how this works, especially when it comes to percentages. The main issue is that even if our savings grow, we might not be able to buy as much with that money because prices are going up.
What is the Inflation Rate?
The inflation rate shows how much prices go up, and it's usually told as a percentage. For example, if the inflation rate is 3%, something that cost 103 this year.
Finding Out How Much Our Money is Worth
To really know how inflation affects our savings, we need to figure out the real value of our money. Let’s say you have $1,000.
By thinking about these points, we can get a better grasp of how inflation changes the way we see our savings.