Glossary
Inflation
Rising prices that erode the value of money
Inflation is a general rise in prices. Because the same money buys less, the real value of cash falls over time.
For example, if prices rise 3% a year, $1,000 today has only about $550 of buying power in 20 years. That is why keeping only cash is risky, and growing your assets faster than inflation helps protect them.
