Inflation is the key reason why your money in a savings account loses value over time 📉

When the inflation rate is higher than your savings account's interest rate, the value of your money decreases 😔

💡 Savings account interest rate = a % of your money that the bank pays you for keeping your money in their account

The average savings account's interest rate is 0.01% to 0.1% per year, but the average rate of inflation is much higher, at 3.8% per year! 😨

So at best, you receive 0.1% every year but then lose 3.8% each year 💸

That's not a great deal!

Over time, this means that the money you have saved may not be able to buy as much as it could before. 🛍️

It's like a race against inflation, and if your savings can't keep up, you'll be left behind. 🏃‍♂️💨

And that’s just on average! 👀

During times of high inflation, your money loses value even faster in savings accounts 😔

So, to fight against inflation, it’s important to invest! 🚀

This gives your money the chance to grow, and unlike your cash, stocks have historically outperformed inflation.

However, it's essential to remember that all investments come with their own risks and may not guarantee returns 🚫📉

Understanding the impact of inflation on your money can help you make more informed decisions to work towards your financial goals! 💡