Graphic The impact of inflation

What’s a constant in everyone’s financial future? Inflation.

Long description of the infographic

Over time, inflation could eat away at your money’s buying power. Above are a few examples of how average costs rose from 1988 to 2018.

Key Takeaways:

  • Inflation is an economic term that refers to the rising price of goods and services over time.
  • It reduces the ‘purchasing power’ of your money—so as prices rise, your money doesn’t get you as much.
  • Inflation increases your cost of living meaning down the road you’ll likely have to spend more to fill your gas tank or buy a gallon of milk.
  • People have been experiencing inflation for a long time—ever hear your parents or grandparents reflect back on when they could get a candy bar for a few cents?
  • Simply saving your money won’t help you keep up with inflation because it isn’t growing at a fast enough rate.
  • One way to safeguard your savings against inflation would be to consider investing it.

Sources: Bureau of Labor Statistics (bread, gasoline, 1988 and 2018), US Statistical Abstract (car, 1988), JD Power (car, 2018), US Census Bureau (home, 1988 and 2018).

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