How inflation affects your savings
What is inflation?
The price of goods and services (like houses, food and education) usually increases over time. This is known as inflation.
How does it affect your savings?
If you keep all your money in a simple savings account at your bank, over the years inflation will begin to eat away at it. The goals that you are saving for may soon become out of reach.
This is why it is important to invest in products that aim to add more to your money than inflation takes away. To do this will require taking some risk, but a well-diversified set of investments can help to give you the best chance of growing your wealth.
To better understand what you are investing for, click on our investment goal calculator.
Investment goal calculator