Saving
How Inflation Silently Erodes Your Savings
How Inflation Silently Erodes Your Savings
Cash feels safe. Sitting on it, though, quietly loses buying power every year. Over long stretches that loss is enormous.
The math of erosion
At 3% inflation, something that costs $1,000 today runs about $1,806 in 20 years, and the buying power of that original $1,000 falls to roughly $554. Same dollars, less stuff.
Why this matters for goals
A future goal — college, a home, retirement — will cost more in nominal dollars than it does today. Plan with the future sticker price, not today's, or you'll come up short.
Fighting back
Invest for returns above inflation. A portfolio matched to your timeline has historically outpaced inflation and preserved real buying power. Even a high-yield savings account offsets some of the drag.
The inflation calculator and the inflation impact calculator show both the future cost of money and what your goals are worth in today's dollars.
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