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Tip of the Day Consider Community College or Online College For Your First Year or Two

Consider Community College or Online College For Your First Year or Two - If you are finding you need the education but don't have the funds, or want to take...

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Inflation

Definition: This is the idea that things will cost more ten years from now than they do today.  When prices are rising, we call it inflation.

TeenAnalyst Advice: Inflation is bad for investors because it eats away at their rate of return.  It's also a critical reason why people should invest their money.

There's a cost to keeping your money in cash.  That cost is that it won't be able to buy as much in the future as it will today.  If inflation is 3.5% per year (the historical average), it means your money is losing 3.5% of value each year.  So if you're earning less than 3.5% in interest, you're actually losing money.

 

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Pacific Die Casting California said:

For investors things like inflation is very bad and thanks for taking your precious time to discuss things related to this topic. I have been searching for perfect article that explains investment things and I found your blog with lots of information. Keep it up!

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