How Inflation Erodes Savings
The gist
Inflation causes the value of money to decrease over time, meaning your savings buy less than before.
Explain like I'm 5
Imagine you have 10 candies saved, but every year, candies get a little less tasty and worth less, so your saved candies can't get you as many treats later.
Big picture
Understanding inflation is important because it affects how much your saved money can actually buy in the future, influencing decisions on spending, saving, and investing.